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The U.S. Attorney's Office said the settlement resolves allegations that Dr. Fred Steinberg, University MRI and Diagnostic Imaging Centers (UMRI) and related entities billed for CT scans that were not performed, though they were reported to patients' physicians as if they were done. The government also alleged the companies did CT scans and ultrasound exams that were not ordered by physicians and were not medically necessary.

The companies deny the charges, and said they paid the $7 million "to end the uncertainty of protracted litigation with the government."

"The U.S. Department of Justice has reached after-the-fact determinations regarding medical necessity for radiology tests," the companies said in a news release. "This could have a chilling effect on the ability of radiologists to properly provide their patients high quality imaging services. The UMRIrelated entities primarily serve elderly patients that pose complex assessment and diagnostic issues.

The UMRI-related entities have always acted and will continue to act in the best interests of all of its patients."

The settlement also resolves allegations that Steinberg and entities illegally paid financial inducements to physicians for patient referrals, in the form of medical directorship, clinical research, employment, facility use, and equipment lease agreements. UMRI and related entities said these issues were resolved years ago, and that the companies not intentionally violate any federal law or regulation.

The investigation resulted from a whistleblower action under the False Claims Act brought by Dr. David Clayman, a former employee of one of the Steinberg practice groups. He will receive $1.75 million as his share of the recovery.

"Billing Medicare for tests that are either not medically necessary or not performed is an abuse of the Medicare program that squanders scarce Medicare dollars," U.S. Attorney R. Alexander Acosta said in a

news release. "We will aggressively prosecute any physicians, including board-certified specialists, who abuse and steal from the Medicare system to line their own pockets."