Atlanta Radiologist Indicted for Fraudulent Medical Practices

ATLANTA—DR. RAJASHAKHER P. REDDY, 39, of Atlanta, Georgia, the president of the Atlanta-based company “Reddy Solutions, Inc.” (“RSI”), was arraigned today on federal charges of wire fraud, mail fraud, health care fraud, and obstruction of justice. REDDY was arraigned before United States Magistrate Judge C. Christopher Hagy and was released on bond.

“This case shows a clear violation of the public's trust. Any time false claims are submitted for payment, our nation's health insurance programs and beneficiaries suffer. Ensuring the integrity of health care programs remains a top priority for the Inspector General and our law enforcement partners,” said HHS/Office of Inspector General Acting Special Agent in Charge Carl D. Bocchicchio.

According to Acting United States Attorney Sally Quillian Yates, the charges, and other information presented in court: REDDY was indicted by a federal grand jury on November 3, 2009. The indictment alleges that his company, RSI, provided radiologist coverage—interpreting x-rays and other films—to various hospitals in the Southeast that otherwise typically lacked full-time radiology coverage. Hospital staff took the film, which REDDY and other RSI radiologists would access remotely via computer. The RSI radiologist was supposed to review the film, prepare and sign a report expressing his or her medical conclusions, and transmit it electronically back to the hospital. REDDY was both the president of the company as well as one of the principal radiologists supposedly interpreting film and preparing reports.

However, the indictment alleges that from May 2007 through January 2008, REDDY signed and submitted thousands of reports in his name without even reviewing the films that were the subjects of the reports. Rather, he had non-physician technicians known as radiology practice assistants review the film and prepare the reports. In some cases, REDDY directed the RSI staff to simply sign for him, and transmit the report as if he had prepared it. In other cases, REDDY accessed the system for the purpose of signing and submitting the reports. The indictment alleges that the majority of the time he never looked at and analyzed the underlying films, and that the reports signed by him therefore did not bear his medical conclusions or those of any other doctor. The indictment does not allege fraud in connection with the reports signed by any other RSI doctor.

The charges carry a maximum sentence of up to 20 years in prison and a fine of up to $250,000 for each count. In determining the actual sentence, the court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government's burden to prove the defendant's guilt beyond a reasonable doubt at trial.

This case is being investigated by special agents of the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of Inspector General.

Assistant United States Attorneys Justin S. Anand and Kurt R. Erskine are prosecuting the case.

For further information please contact Sally Q. Yates, Acting United States Attorney, or Charysse L. Alexander, Executive Assistant United States Attorney, through Patrick Crosby, Public Affairs Officer, U.S. Attorney's Office, at (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.usdoj.gov/usao/gan.