Jitesh Patel, M.D., Advanced Urology, Inc., and affiliated companies will pay $14 million to settle allegations that they violated the False Claims Act and the Georgia False Medicaid Claims Act by billing federal healthcare programs for urological and diagnostic procedures that were either not performed or medically unnecessary, according to an April 2 announcement.
The settlement addresses concerns about fraud in federal health care programs such as Medicare and Medicaid. Authorities say these actions can undermine public trust and divert resources from patients who truly need care.
“Physicians commit fraud when they seek payment for medically unnecessary procedures or bill for services they never performed,” said U.S. Attorney Theodore S. Hertzberg. “Our office will not tolerate abuse of patients or misuse of government funds, and we will enforce the False Claims Act to hold wrongdoers accountable.”
Special Agent in Charge Kelly Blackmon of the Department of Health and Human Services Office of Inspector General said, “Today’s action underscores our commitment to safeguarding federal health care programs from fraud and abuse.” Peter Ellis, Acting Special Agent in Charge of FBI Georgia, added: “Submitting false claims to federal healthcare programs is a serious violation of the law, and we will continue to ensure those responsible are held accountable.”
The investigation began after whistleblower complaints alleged that Advanced Urology performed unnecessary procedures—including implanting permanent Sacral Nerve Stimulator devices without proper assessment—and billed for tests never performed. The complaints also described billing practices such as performing numerous cystoscopy procedures under anesthesia without medical necessity, conducting electromyography tests on nearly every new patient despite their rarity in urology practice, ordering thousands of unnecessary ultrasound tests, and billing for Direct Visual Internal Urethrotomy (DVIU) procedures that were not actually done.
Under the settlement terms resolving two lawsuits filed under whistleblower provisions in federal court in Georgia—United States ex rel. Lorraine Perumal-Szramel v. Advanced Urology et al., No. 1:18-cv-4482-SCJ; United States ex rel. Himanshu Aggarwal v. Jitesh V. Patel et al., No. 1:19-cv-2844-WMR—the whistleblowers will receive a collective share of $2,940,000 from the recovery.
Jim Mooney, Deputy Attorney General with Georgia’s Medicaid Fraud Division said: “Fraud against the Medicaid program is stealing from Georgia taxpayers – plain and simple... This office will ensure that Medicaid providers treat their patients and Georgia taxpayers with respect...” Jason Sargenski with Defense Criminal Investigative Service stated: "This settlement should serve as a strong deterrent to healthcare practitioners who abandon their Hippocratic Oath while seeking to exploit... TRICARE... DCIS...will continue to aggressively investigate allegations...and seek justice on behalf of our men and women in uniform.”
The civil settlement resolves only allegations; there has been no determination of liability.
The case was investigated by several agencies including the principal federal law enforcement agency for northern Georgia according to its official website. The office enforces criminal laws while representing civil matters across north Georgia’s mountains through Atlanta suburbs up toward Alabama and Carolina borders according to its official website. Theodore S. Hertzberg held his position at this agency according to its official website, which coordinates cases with nationwide dimensions according to its official website.
For more information about this matter or related initiatives serving approximately 7.5 million residents across north Georgia according to its official website, contact details are available through the Public Affairs Office.
