Atlanta Gastroenterology Associates Pays $4.75M to Settle Allegations of Kickbacks and Unnecessary Medical Testing Services

By the Constantine Cannon Whistleblower Team

To resolve allegations of kickbacks and medically unnecessary services, Georgia-based Atlanta Gastroenterology Associates agreed to pay a False Claims Act settlement of $4.75 million.[1]

The Alleged Scheme: Unnecessary Medical Testing and Lab Services Kickbacks

According to the United States, starting around May 2017, Atlanta Gastroenterology Associates contracted with Advanced Pathology Solutions (APS), a pathology lab in Little Rock, Arkansas to build and run a small-scale pathology lab within the Atlanta Gastroenterology office.

Atlanta Gastroenterology allegedly benefited unlawfully from the in-house lab, where lab technicians prepared and stained specimen slides, services Atlanta Gastroenterology then billed to Medicare. In return for the in-house arrangement, Atlanta Gastroenterology purportedly agreed to refer patients exclusively to the Arkansas lab, which then interpreted the slides and also billed for their services. This quid-pro-quo relationship, according to the United States, constituted illegal payment for patient referrals.[2]

The United States also claimed that Atlanta Gastroenterology conducted and billed for unnecessary follow-up work without physician approval. Using an automated ordering process, Atlanta Gastroenterology allegedly ordered special stains without a pathologist first reviewing an initial stain to determine if more stains were necessary. The relationship between Atlanta Gastroenterology and APS ended around May 2020.[3]

Comment on the Case

Special Agent in Charge Jason E. Meadows of the U.S. Department of Health and Human Services Office of Inspector General Dallas Regional Office commented: “This False Claims Act settlement underscores our commitment to safeguarding taxpayer dollars and maintaining public trust by holding providers accountable when they fail to meet those obligations. Providers who induce referrals by paying illegal kickbacks place an unfair burden on these programs, and we remain steadfast in working with our law enforcement partners to identify and address such conduct.”[4]

Whistleblowers Can Help Stop Healthcare Fraud

Healthcare fraud occurs at different levels of the healthcare system and can be carried out by various individuals and organizations including hospitals, doctors, clinics, labs, pharmaceutical manufacturers and pharmacies, and many more.

While it is unknown whether whistleblowers were involved in initiating this particular case, whistleblowers can report healthcare fraud by bringing a case under the qui tam or whistleblower provisions of the False Claims Act. Under the statute, private parties can file lawsuits on the government’s behalf and receive up to 30% of the government’s recovery.

Enforcing healthcare-related fraud continues to be one of the government’s priority areas. Constantine Cannon partner Marlene Koury commented: “As the DOJ recently reported in its 2025 False Claims Act Roundup, out of the $6.9 billion the government recovered in 2025 under the statute, $5.7 billion came from matters involving healthcare-related fraud.”

Our Firm Has Extensive Experience Representing Whistleblowers

Constantine Cannon has extensive experience representing whistleblowers under the False Claims Act. If you believe you have a case, would like to learn about our whistleblower successes, or what it means to be a whistleblower under the False Claims Act, please contact us. We will connect you with a member of our whistleblower team for a free and confidential consultation.

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Sources:

[1] See https://www.justice.gov/opa/pr/gastroenterology-practice-agrees-pay-475m-settle-allegations-kickbacks-and-unnecessary

[2] Id.

[3] Id.

[4] Id.

Tagged in: Anti-Kickback and Stark, False Claims Act,