Gastroenterology practices, a gastroenterologist and a lab tied to GI practices have agreed to pay $35.05 million in 2026 to resolve federal allegations, according to Justice Department announcements.
Kickback cases account for $34.75 million of that. Both kickback cases involve the same in-office pathology lab arrangement, one from each side of it.
Here are the three GI settlements announced from Jan. 1 to Sept. 30, listed by date:
1. Atlanta Gastroenterology Associates: $4.75 million. Announced Feb. 27. The Atlanta-based practice agreed to pay $4.75 million to resolve allegations that it accepted kickbacks from Advanced Pathology Solutions in exchange for exclusive pathology referrals from May 2017 to May 2020. The lab had set up shop inside the practice. The government also alleged the practice billed for special stains that were ordered automatically and were not medically necessary. DOJ
2. Advanced Pathology Solutions: $30 million. Announced June 17. The North Little Rock, Ark.-based lab, its management company APS MSO and owners Kevin Hannah, Donell Burkett and Daniel Hunter Pledger agreed to pay $30 million. The settlement resolves allegations that they paid kickbacks to GI practices through in-office “lean labs” from 2015 to July 2022. The government alleged special stains were ordered automatically before a pathologist reviewed the case, and that the company paid commissions for nerve biopsy test referrals. The lab also signed a five-year corporate integrity agreement with HHS’ Office of Inspector General. DOJ
3. Twan Phanijphand, MD: $300,000. Announced Sept. 21. The Fort Walton Beach, Fla.-based gastroenterologist agreed to pay $300,000 to resolve allegations that he wrote at least 127 controlled substance prescriptions without patient records from June 2023 to March 2025. He gave up his DEA registration for Schedule II and IIN drugs and agreed to monitoring.
Neither kickback settlement included a determination of liability.
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