New Jersey-based Medquist Pays U.S. $6.6 Million to Resolve False Claims Act Allegations

WASHINGTON -- Medical transcription service provider MedQuist Inc. has paid the United States $6.6 million to resolve allegations under the False Claims Act that it overbilled federal government clients, the Justice Department announced today. From 1998 onward, MedQuist provided medical transcription services to several federal government clients, including the Department of Veterans Affairs (VA), the Department of Defense (DOD) and the Public Health Service (PHS), part of the Department of Health and Human Services (HHS).

The government alleged that, from approximately 1998 through 2004, the Mount Laurel, N.J., company knowingly overbilled VA, DOD and PHS for medical transcription services. Certain federal contracts called for MedQuist to bill according to a transcription industry billing standard called the "AAMT line." Other contracts at issue imposed slightly different billing standards. More...