Mobile PET Provider Pays $8.33 Million in Kickback Settlement

Modern Nuclear Inc., a La Habra, California-based provider of mobile positron emission tomography scans, has agreed to pay $8,334,350.71 plus additional amounts tied to future revenues to settle False Claims Act allegations, according to a U.S. Department of Justice press release published May 1, 2026.

The settlement affects federal health care programs, including Medicare, which reimburses PET scans for cardiac patients. The Justice Department alleges Modern Nuclear paid cardiologists fees exceeding fair market value to supervise scans, impacting an unspecified number of claims submitted between 2014 and 2021.

The payment amount reflects the company's ability to pay, per the press release, and resolves claims without admission of liability.

Prior to the settlement, Modern Nuclear operated under allegations of Anti-Kickback Statute violations, where payments to referring physicians could induce referrals. Now, the company pays the settlement amount immediately, with contingent payments based on revenues through 2028, per the agreement terms in the Justice Department release.

The resolution takes effect upon finalization of the agreement, expected within weeks of the May 1 announcement.

The settlement directs recovered funds to the U.S. Treasury and federal health programs, bolstering enforcement budgets for future False Claims Act cases. It triggers mandatory compliance reporting for Modern Nuclear, requiring annual certifications to the Department of Health and Human Services Office of Inspector General for five years.

Federal prosecutors in the Central District of California must now monitor adherence, with potential for further action if violations recur.

This marks the Justice Department's 15th health care fraud settlement exceeding $5 million in 2026, following a pattern of increased enforcement against diagnostic imaging providers since the 2020 launch of the Health Care Fraud Strike Force expansion, per departmental records.