ATLANTA – The United States Attorney’s Office announced that it has reached a settlement with Medical Business Service, Inc. (MBS), which agreed to pay $1.95 million to settle claims that it violated the False Claims Act by fraudulently changing diagnosis codes on claims to Medicare and Medicaid, in order to get the rejected claims paid on behalf of radiologists.  MBS was located in Florida, with an office in Duluth, Ga.

“Billing companies provide a key check-point to combat medical billing fraud.  Consequently, they will be examined with the same scrutiny as healthcare providers,” said United States Attorney Sally Quillian Yates.

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Federal funds designated for use through the Medicare and Medicaid programs are much needed but limited.  When those funds are not used as intended, the system does not work as intended and people suffer.  The FBI will continue to work with its various law enforcement partners in dedicating significant investigative resources toward ensuring that these federally funded healthcare based programs are not abused.”

“The health care providers who contracted with MBS placed their trust in the company to correctly process claims and not submit fraudulent information to the Medicare and Medicaid programs,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.  “The lack of compliance and oversight by MBS placed all these providers at risk.  Billing services such as MBS have no less of a duty to ensure truthful information on claims than do the providers who use these services.”


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