The U.S. Department of Justice announced a $30 million settlement with Advanced Pathology Solutions and its owners over allegations of kickbacks to gastroenterology practices and medically unnecessary pathology testing. The case centered on a “lean lab” model in which GI practices allegedly received benefits in exchange for exclusively referring pathology specimens to APS, as well as the routine ordering of special stains and confirmatory tests before pathologist review.
The settlement highlights ongoing federal scrutiny of pathology referral arrangements and utilization practices. In addition to the financial penalty, APS entered into a five-year Corporate Integrity Agreement requiring enhanced compliance oversight, auditing, physician referral reviews, and staff training. The DOJ said the case underscores its continued focus on combating healthcare fraud, unnecessary testing, and Anti-Kickback Statute violations.