Atlanta Gastroenterology Associates has agreed to pay $4.75 million to settle allegations that it violated the False Claims Act by receiving kickbacks for pathology referrals and performing medically unnecessary gastrointestinal pathology tests.
According to the U.S. Department of Justice, the GI practice entered into an arrangement with Advanced Pathology Solutions, a lab based in Arkansas, beginning in 2017.
Under the agreement, the lab helped establish and operate a limited-capacity in-office pathology lab at the gastroenterology practice. In exchange for various operational benefits, the practice allegedly agreed to exclusively refer pathology interpretation services to the lab.
Federal investigators claimed these benefits constituted illegal remuneration for referrals, violating federal anti-kickback rules tied to Medicare and other federal healthcare programs.
Authorities also alleged the practice conducted medically unnecessary pathology testing, including ordering special stains automatically through a reflex testing protocol without first reviewing routine stains or documenting medical necessity.
The relationship between the two organizations ended in May 2020.
The settlement resolves allegations only, and no determination of liability was made.