An Arkansas pathology laboratory that set up in-office labs at gastroenterology practices nationwide has agreed to pay $30 million to resolve False Claims Act allegations of paying illegal kickbacks and ordering medically unnecessary testing, the Justice Department said in a June 17 news release.
Advanced Pathology Solutions and its owners allegedly established limited-purpose “lean labs” inside gastroenterology practices from 2015 through July 2022, providing various benefits to the practices in exchange for exclusive referrals of patient samples to APS’ North Little Rock lab for pathologist interpretation. The government further alleged that APS directed lean lab personnel to automatically order special stain tests before a pathologist reviewed routine results to determine whether additional testing was necessary, resulting in medically unnecessary claims to federal healthcare programs.
In connection with the settlement, APS entered into a five-year Corporate Integrity Agreement with HHS-OIG. The claims are allegations only and there has been no determination of liability.
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