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Former Bozeman Radiologists File Whistleblower Lawsuit

Allegations say hospital illegally conspired to maintain monopoly on radiation services

By Associated Press

BOZEMAN — Two former Bozeman radiologists have filed a federal whistleblower lawsuit alleging Bozeman Health Deaconess Hospital illegally conspired to maintain its monopoly on radiology services, some of which are billed to Medicare and Medicaid.

Frank Rembert and Michael Paradise allege the radiology group that had contracted with the Bozeman hospital was considering opening an outpatient imaging center, which would have competed with the hospital for patients and possibly offered services at a lower cost.

The lawsuit alleges the hospital created a joint venture with the radiology group and agreed to refer patients to the joint venture in exchange for millions of dollars in kickbacks.

Hospital officials tell the Bozeman Daily Chronicle the hospital denies the allegations and will defend itself against the lawsuit, which was filed in December but made public last week.