NRI PULSE STAFF REPORT
Atlanta, GA, April 6, 2026: Atlanta Gastroenterology Associates has agreed to pay $4.75 million to resolve federal allegations that it received illegal kickbacks for patient referrals and performed medically unnecessary gastrointestinal pathology testing, according to the U.S. Department of Justice.
The practice is part of United Digestive, a management services organization led by CEO Neal C. Patel.
Federal authorities alleged that beginning around May 2017, the Atlanta-based practice entered into an arrangement with Advanced Pathology Solutions (APS), a laboratory in Arkansas, to establish and operate a limited-capacity pathology lab within its office. Under the arrangement, histology technicians prepared and stained specimen slides at the in-house lab, while Atlanta Gastroenterology billed Medicare and other insurers for the technical component of the services.
In exchange, the practice allegedly agreed to refer all patients exclusively to APS, which interpreted the slides and billed separately for the professional component. Federal officials contend that the benefits provided by APS to Atlanta Gastroenterology constituted unlawful remuneration tied to those referrals, in violation of the False Claims Act.
“Healthcare fraud has negative impacts for taxpayers and patients alike,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division, adding that the settlement reflects efforts to ensure that federally funded healthcare services are “reasonable, necessary, and free from the influence of kickbacks.”
U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas said the government would continue pursuing fraud cases to recover taxpayer funds. “Fraud against the American taxpayer through healthcare fraud is rampant,” he said.
In addition to the kickback allegations, the United States claimed that Atlanta Gastroenterology performed and billed for medically unnecessary “special stains” — additional laboratory tests — through a blanket or reflex ordering process. According to the allegations, these tests were ordered automatically without a pathologist first determining their necessity and without proper documentation in patient records.
The relationship between Atlanta Gastroenterology and APS ended in approximately May 2020.
Federal investigators from multiple agencies, including the Department of Health and Human Services Office of Inspector General, the Department of Defense Office of Inspector General, and the Department of Veterans Affairs Office of Inspector General, assisted in the case.
Officials emphasized that the claims resolved by the settlement are allegations only, and there has been no determination of liability.
