June 17, 2026. After receiving a False Claims Act qui tam complaint from the Whistleblowers, the United States Department of Justice investigated and resolved the lawsuit against Advanced Pathology Solutions PLLC (formerly known as Advanced Pathology Solutions LLC), an anatomic pathology laboratory headquartered in North Little Rock, Arkansas, and its management services organization, APS MSO LLC (together, “APS”), along with current and former owners of the business. A copy of the Whistleblower (Relator) Team’s complaint is here. A copy of the Department of Justice settlement agreement with APS and one of three owners is here. A copy of the Department of Justice settlement with the other two owners of APS is here. A copy of the Government’s Complaint in Intervention is here. A link to the Department of Justice press release is here.
This settlement among the United States, Relators, and APS stemmed from allegations that from January 1, 2015, through July 31, 2022, APS knowingly and willfully provided unlawful remuneration to gastroenterology practices in exchange for patient referrals; and submitted or caused the submission of claims for medically unnecessary pathology testing.
“Healthcare referrals must be based on the best decision for patients, not the influence of kickbacks,” said the Assistant Attorney General of the Justice Department’s Civil Division. “This settlement demonstrates the Department’s commitment to hold accountable both corporations and individuals who profit from improper kickback arrangements and who burden federal healthcare programs with claims for medically unnecessary services.”
The whistleblowers, also known as qui tam relators, were former employees of APS. The case highlighted the critical role that employees play in disclosing their concerns of potential kickbacks among healthcare organizations to the U.S. Department of Justice. “Under the FCA, private parties can file an action on behalf of the United States and receive a portion of the recovery.”
The Relators’ Complaint also led to the imposition of a 5-year Corporate Integrity Agreement (CIA) required by HHS-OIG. The CIA requires APS to implement numerous auditing and accountability provisions, including implementation of a robust compliance program, new training and education requirements, and a review of physician referral relationships. A request for a copy of the CIA can be made here.
Civil prosecutors for the U.S. Attorney’s Office for Eastern District of Arkansas in Little Rock and the U.S. Department of Justice, Civil Frauds Section, are responsible for this important resolution. Whistleblower attorneys Renée Brooker and Eva Gunasekera represented the qui tam relators. Contact them at reneebrooker@tzlegal.com and eva@tzlegal.com. These two settlements exemplifies the success of the False Claims Act public-private partnership between the U.S. Department of Justice and Whistleblowers to hold the healthcare industry accountable for actions that impact government healthcare programs (traditional Medicare, Medicare Advantage, Medicaid, TRICARE, VA Health, and FEHB) funded by U.S. taxpayers.