MIDI, LLC, operator of 14MRI centers in the Chicago area, has settled a lawsuit, alleging illegal kickbacks to physicians, for $1.2 million dollars.  Six other MRI centers named in the same lawsuit have already settled. The civil lawsuit, filed in 2007 by a competing MRI clinic, claimed that the MIDI affiliated MRI centers violated the Illinois consumer Fraud and Deceptive Business Practices Act, as well as state anti-kickback laws. Under Illinois’ whistle blower law, the competing MRI clinic will receive an undisclosed percentage of the settlement.¹

The whistleblower suit claimed that the MRI centers created sham lease agreements with physicians under which the doctors charged a lower rate for MRI scans while charging the insurance companies a much higher rate, and pocketing the difference.²

While MIDI, LLC reached a settlement of $1.2 million, the company admits no wrongdoing and indicated that the settlement was reached to avoid the costs of a lengthy investigation and ongoing litigation.³ The settlement requires MIDI to cease their current “kickback” practices, as well as pay a fine for $1.2 million that will cover money damages, restitution, and penalties.⁴ The Ste of Illinois will receive approximately $840,000, which will be used to provide grants to increase healthcare access to low-income residents in Illinois. ⁵

Attorney General Lisa Madigan stated that the lawsuit, which has been watched closely by professionals in the radiology field, “Sends a strong message that medical professionals cannot engage in schemes to line their pockets, at the expense of providing the best patient care.” Madigan also stated that, following this lawsuit, patients should feel confident that when they are sent to receive an MRI scan it is because it is medically necessary. ⁶