Arthritis & Rheumatology Center settles $2.18 million false claims case

Theodore S. Hertzberg United States Attorney for the Northern District of Georgia
Theodore S. Hertzberg United States Attorney for the Northern District of Georgia - Department of Justice
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Arthritis & Rheumatology Center, P.C. (ARC) and its owner, Dr. Jatin Patel, have agreed to pay $2.18 million to resolve allegations that ARC used medical assistants to perform infusion services in violation of Georgia law and submitted claims for those services to Medicare, allegedly violating the False Claims Act.

“Physicians who disregard state and federal law by allowing unqualified individuals to perform unauthorized medical services place patients in needless danger,” said U.S. Attorney Theodore S. Hertzberg. “Our office will hold accountable those who participate in federal healthcare programs but seek to enrich themselves by not following the rules.”

The case began after an ARC employee filed a whistleblower complaint claiming that unlicensed medical assistants were administering chemotherapy medications at ARC, despite Georgia regulations prohibiting this practice. The complaint alleged that because Medicare does not reimburse for services provided in violation of state law, ARC’s actions led to false claims being submitted under the False Claims Act.

This settlement resolves a lawsuit brought in the U.S. District Court for the Northern District of Georgia by former ARC employee Phillips Allender under the qui tam provisions of the False Claims Act (U.S. ex rel. Allender v. Arthritis & Rheumatology Center, P.C. and Jatin Patel, M.D., No. 1:21-cv-4530-MLB). Under these provisions, private citizens can file suit on behalf of the United States and may receive a portion of any recovery; Allender will receive $414,200 from this settlement.

Officials emphasized that these are allegations only and there has been no determination of liability.

The U.S. Attorney’s Office for the Northern District of Georgia investigated this case with Assistant U.S. Attorney Adam D. Nugent handling it.

The U.S. Attorney for the Northern District of Georgia serves as the main federal law enforcement agency in north Georgia, handling both criminal prosecutions and civil cases while collaborating with other agencies on issues ranging from terrorism to public safety across a region serving millions of residents (official website). The office is based primarily in Atlanta but also covers surrounding areas and coordinates cases with national reach.

For more information, contact the Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.



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