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Lancaster-based radiation center pays $3 million to resolve federal allegations

by City News Service • May 9, 2017

LOS ANGELES – A Lancaster-based radiation therapy center paid $3 million to resolve allegations that it submitted fraudulent bills over a nearly 10-year period to three government-run healthcare programs for unsupervised radiation oncology services, the U.S. Attorney’s Office announced Tuesday.

Valley Tumor Medical Group paid about $2.86 million to the government and $134,307 to the State of California on April 13 to resolve allegations in a “whistleblower” lawsuit that it submitted fraudulent bills to the Medicare, Medi-Cal and TRICARE programs.

Valley Tumor did not admit liability in settling the suit.

The civil action was unsealed and dismissed on April 20 by U.S. District Judge R. Gary Klausner.

The U.S. Attorney’s Office said it learned of the unsealing late Monday.

From Jan. 3, 2006, through Nov. 13, 2015, Valley Tumor’s radiation therapists were accused of administering radiation oncology treatments at the center’s Ridgecrest location to beneficiaries of the three government healthcare programs when no doctor was on-site, which is required by federal regulations. Valley Tumor closed its Ridgecrest location in early 2016.

Valley Tumor was named in a federal suit filed in 2015, alleging the company and its doctor-owners knowingly submitted false claims to the Medicare, Medi-Cal and TRICARE programs.

The lawsuit was brought by a former Valley Tumor employee under the qui tam — or whistleblower — provisions of the False Claims Act, which allows private citizens to bring suit on behalf of the government and share in any recovery.

The whistleblower, Jared Shindler, received $555,000 from the settlement.

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Filed Under: Crime/ Safety, Health, Lancaster

7 comments for "Lancaster-based radiation center pays $3 million to resolve federal allegations"

  1. Cancer survivor says

    May 15, 2017 at 1:02 pm

    People dont know the details.. They where actually giving a better more precise treatment that the insurance companies refused to pay for because they didn’t believe the patients needed it enough to actually pay for it.

  2. Cheryl says

    May 10, 2017 at 4:23 am

    Not true… only some get away with it. In my profession i have seen medical personnel receive sentences. It is really scary out there. People are too trusting. Research… lots of research before you allow someone to treat you.

  3. Augustino says

    May 9, 2017 at 8:18 pm

    … have you ever noticed, how everybody in socialized medical or health care has a magic get-out-of-jail free card? It’s amazing that, no matter how corrupt they are, no matter what they do, irregardless how egregious their transgression, no one in heath care or professional medical ever has to go to jail –

    • denise stullich says

      May 16, 2017 at 1:54 am

      your comment is interesting and worth consideration, in addition, there are many others in protected positions who avoid justice for example: Wall Street bankers (2008 financial meltdown) to child abusers (high concentration in the AV)…..and the list goes on….

  4. Daniel says

    May 9, 2017 at 6:30 pm

    Crooks in the desert. Just proves that an education doesn’t prevent you from being a criminal.

  5. Randy says

    May 9, 2017 at 6:16 pm

    More Lancaster corruption. The Culture of Corruption which starts on Fern Street with the mayor and his yes men spills over throughout the city.

  6. Barbara says

    May 9, 2017 at 6:01 pm

    … hospital corporations of the 21st century are even more corrupt, than 20th century organized crime –

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