Hospital paid $10 million to settle federal lawsuit over radiology services

Unsealed court documents show Bozeman Health Deaconess Hospital paid $10 million to settle a federal lawsuit in November accusing the hospital’s radiology department of fraud.

The lawsuit, which was filed nearly three years ago in U.S. District Court in Butte, alleged the hospital made millions of dollars worth of fraudulent claims to government health care programs as part of an illegal kickback scheme to keep a monopoly on radiology services in Gallatin County. The lawsuit was dismissed Oct. 31, after a settlement was reached.

Despite the settlement, a hospital spokeswoman said Friday the defendants listed in the case deny all the allegations and any wrongdoing.

The details of the settlement were initially sealed. However, a copy of the agreement, obtained through a Freedom of Information Act request, was provided to the Chronicle.

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