AUSTIN — A North Texas company whose president gave Ken Paxton $100,000 last year to fight his felony fraud indictments will pay $3.5 million after allegations it skimped on services to Medicaid and Medicare patients while over-billing the government.
A former employee who brought the original lawsuit against Preferred Imaging LLC, a medical diagnostic company headed by James H. Webb of Frisco, alleged the company was performing services that require the oversight of a supervising doctor without one on-site.
The company then asked to be reimbursed as though it had had an attending physician on staff, according to the whistleblower, which meant the company’s profits increased as the cost of services dropped.