The U.S. Department of Justice announced on February 27, 2026 that Atlanta Gastroenterology Associates located in Atlanta, Georgia, has agreed to pay $4.75 million to resolve allegations that it violated the False Claims Act by receiving kickbacks in exchange for referrals of gastrointestinal pathology services and by performing certain gastrointestinal pathology services that were not medically reasonable or necessary.
The United States alleged that beginning in approximately May 2017, Atlanta Gastroenterology Associates contracted with Advanced Pathology Solutions (APS), a pathology laboratory located in Little Rock, Arkansas, to construct and operate a limited-capacity pathology laboratory in Atlanta Gastroenterology Associates’ office. Atlanta Gastroenterology Associates received various benefits from APS in connection with the setup and ongoing operations of the in-house lab, in which histology technicians prepared and stained specimen sample slides and Atlanta Gastroenterology Associates billed Medicare and other insurers for the technical component of those services. In exchange, Atlanta Gastroenterology Associates agreed to exclusively refer patients to APS, which interpreted the slides and billed for the professional component of the services. The United States alleges that the benefits provided by APS to Atlanta Gastroenterology Associates were unlawful remuneration in exchange for patient referrals.
Additionally, the United States alleged that Atlanta Gastroenterology Associates performed and billed for medically unnecessary special stains using a blanket or reflex ordering process in which special stains were ordered on an automatic basis, without a pathologist first reviewing a routine stain and determining whether additional special stains were needed for the particular patient, and without justification in the medical record for performing additional special stains. Atlanta Gastroenterology Associates and APS terminated their relationship in approximately May 2020.
An Assistant Attorney General with the Justice Department’s Civil Division stated with regard to the settlement, “Healthcare fraud has negative impacts for taxpayers and patients alike. This settlement reflects the Department’s commitment to protecting taxpayer money and ensuring that healthcare services paid for by for by federal healthcare programs are reasonable, necessary, and free from the influence of kickbacks.”
The claims resolved by the settlement are allegations only and there has been no determination of liability.
If you have information regarding false claims having been submitted to Medicare or Medicaid and the information is not publicly known and no actions have been taken by the government with regard to recovering the false claims, you should promptly consult with a False Claims Act attorney (also known as qui tam attorneys) in your U.S. state who may investigate the basis of your False Claims Act allegations and who may also assist you in bringing a qui tam lawsuit on behalf of the United States, if appropriate, for which you may be entitled to receive a portion of the recovery received by the U.S. government.
Visit our website or call us toll-free in the United States at 800-295-3959 to be connected with qui tam lawyers (False Claims Act lawyers) in your U.S. state who may assist you with a False Claims Act lawsuit.
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