Texas lab, CEO to pay $36.2M to settle physician kickback, fraud allegations 

Advertisement

A Houston-based laboratory, its former CEO and a Florida businessman have agreed to pay a combined $36.4 million to resolve False Claims Act allegations of paying kickbacks and billing Medicare and Medicaid for medically unnecessary genetic testing, the Justice Department said in a July 30 news release.

Access DX Laboratory, former CEO Michael Stewart and Harold Shatz allegedly paid kickbacks to marketers for patient referrals, unbundled billing codes for genetic testing and paid telemedicine providers for fraudulent physicians’ orders between January 2018 and January 2020. Mr. Stewart and Mr. Shatz previously pleaded guilty to conspiracy to defraud the United States and to pay and receive healthcare kickbacks.

The case was initiated through a whistleblower complaint filed by Douglas Green, president of a Massachusetts marketing company hired to market genetic testing to Medicare and Medicaid beneficiaries, who will receive $7.2 million from the settlement. Access DX also entered into a five-year Corporate Integrity Agreement with HHS-OIG.

At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.

Register to Attend Webinar

160 ambulatory leaders just ranked the EHR as the single system most overdue for AI reinvention

Tuesday, August 11
12:00 PM - 1:00 PM CDT

Presenter: Gautam Shah, MBA, FACHDM, NextGen Healthcare

Advertisement

Next Up in ASC Coding, Billing & Collections

  • Physician assistant compensation is rising in 2026, but emergency medicine, gastroenterology and hematology and oncology specialists are outpacing the field…

  • State legislatures have spent the past two years chipping away at one of healthcare’s most contested employment tools.  Fourteen states…

  • Hospital M&A has not slowed down. Becker’s tracked 12 hospital deals in the last month alone as health systems continue…

Advertisement