This blog post delves into recent cases that highlight the significant financial and legal repercussions faced by radiology centers and healthcare providers who neglected proper medical supervision. By examining cases involving improper billing, lack of required physician supervision, and services performed without proper credentials, it underscores the vital importance of adherence to supervision protocols in radiology. These real-world examples serve as cautionary tales, emphasizing that the hidden costs of neglecting supervision extend far beyond financial settlements—they jeopardize patient safety and the integrity of medical imaging.


The world of medical imaging is built upon precision, accuracy, and, above all, patient safety. Radiologists and healthcare providers are entrusted with the task of conducting procedures that require both expertise and supervision. However, recent cases have shed light on the alarming costs of evading proper medical supervision in contrast radiology, both from a fraud and litigation perspective.

Government Fraud Cases

Within the realm of medical imaging, cases of government fraud have become a matter of concern, drawing attention to the critical importance of adherence to regulatory and supervisory standards. These cases, often involving Medicare and TRICARE, shed light on the consequences of non-compliance with supervision requirements and the potential financial liabilities faced by healthcare providers and institutions. In this section, we delve into these government fraud cases, exploring their impact, underlying issues, and the lessons they offer to the healthcare industry. These instances not only emphasize the significance of proper supervision in radiology but also highlight the need for stringent compliance measures to protect patient well-being and the integrity of medical imaging practices.

Case 1: Advanced Imaging of Port Charlotte, LLC - $501,000 Settlement

In September 2020, Advanced Imaging of Port Charlotte, LLC, found itself facing a significant financial burden. The radiology center agreed to pay a hefty $501,000 to resolve allegations that it improperly billed Medicare and TRICARE for dye-contrast scans. These scans were administered without the required direct physician supervision, a critical element in ensuring patient safety during these procedures. Additionally, services were performed by physicians who were not appropriately credentialed by Medicare. This case serves as a stark reminder of the consequences of bypassing essential supervision protocols.

Case 2: William M. Kelly, M.D., Inc.; Omega Imaging Inc. - $5 Million Settlement

In the same month in 2020, another striking case emerged involving two companies jointly operating radiology facilities. William M. Kelly, M.D., Inc., and Omega Imaging Inc. agreed to pay a staggering $5 million to resolve False Claims Act (FCA) allegations. The allegations revolved around billing Medicare and TRICARE for CT scans and MRIs conducted without appropriate physician supervision. Additionally, these procedures took place in non-accredited radiology facilities, further compromising patient safety. As part of the settlement, the companies entered into a three-year integrity agreement with the Department of Health and Human Services' Office of Inspector General (HHS-OIG).

Case 3: Akumin Corporation; Delaware Open MRI - $749,600 Settlement

In February 2021, Akumin Corporation, in conjunction with Delaware Open MRI, found itself in a financial predicament. The diagnostic imaging services provider agreed to pay nearly $750,000 to resolve FCA allegations. The core issue was that Medicare was billed for over 1,500 procedures that lacked the requisite physician supervision. Furthermore, in some cases, it was impossible to determine whether a physician was present during the procedures. This case underscores the importance of maintaining strict supervision standards in radiology practice.

Case 4: University of Maryland Shore Regional Health - $296,870 Settlement

Fast forward to May 2022, and we encounter yet another sobering case. The University of Maryland Shore Regional Health agreed to pay $296,870 to settle FCA allegations. The health system faced accusations of billing Medicare for radiation therapy and diagnostic services performed without the required physician supervision. This case serves as a reminder that even established healthcare institutions can face legal repercussions when supervision standards are not met.

Medical Malpractice Lawsuits

Case 1: Sioux Center Community Health Center - $29.5 Million Verdict

In 2015, Carrie DeJongh tragically lost her life due to an allergic reaction to contrast dye administered during a CT scan at the Sioux Center Community Health Center in Sioux Center, Iowa. Despite being given Benadryl by the attending physician, immediate life-saving measures were not taken, including the administration of epinephrine. This incident led to a $29.5 million verdict by an Iowa jury, which found Dr. Slice negligent and held him responsible for the damages incurred by the plaintiffs, including the victim’s surviving husband and their four children. This case underscores the critical importance of adhering to rigorous supervision and safety standards in medical imaging to safeguard patient well-being and ensure the highest quality of care.

Case 2: Tyrone Hospital - $10.83 Million Verdict

In a significant legal verdict in 2020, a Blair County jury granted $10.83 million to a 45-year-old Tyrone man, Christopher Carey Miller, who suffered life-altering brain damage following an MRI procedure at Tyrone Hospital in 2016. The unanimous decision assigned a substantial portion of the award, $6.21 million, to Miller's anticipated future medical expenses and round-the-clock care spanning three decades. The remainder was designated for his prior medical costs, lost earnings, and pain and suffering. The verdict highlighted critical errors in supervision during Miller's MRI visit in October 2016, during which he experienced an allergic reaction to gadolinium, leading to cardiac arrest and profound brain damage. This case underscores the critical importance of patient safety and the need for meticulous supervision in diagnostic imaging procedures.

Conclusion: The True Cost of Neglecting Supervision

These cases are not just about hefty settlements; they underscore the vital importance of supervision in radiology. Proper supervision is not merely a regulatory requirement but a fundamental element of patient safety. Evading supervision not only poses serious legal and financial risks but, more importantly, it jeopardizes patient well-being. Radiologists, healthcare providers, and institutions must remain committed to upholding the highest standards of supervision to ensure the integrity of medical imaging and, above all, the safety of their patients.

Still interested in reading more? Learn about how on-demand contrast supervision can maximize your revenue.

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