Arthritis & Rheumatology Center settles false claims case for $2.18 million

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

The U.S. Attorney’s Office for the Northern District of Georgia announced the settlement on January 29, 2026. The office serves as the main federal law enforcement agency in north Georgia, handling both criminal prosecutions and civil cases for the United States across a region serving approximately 7.5 million residents and managing cases with national and international reach according to its official website.

“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 investigation began after an ARC employee filed a whistleblower complaint alleging that unlicensed medical assistants were administering chemotherapy medications at ARC, contrary to Georgia regulations prohibiting such conduct. Since Medicare does not pay for services rendered in violation of state law, it was alleged that ARC’s actions resulted in false claims being submitted to Medicare under the False Claims Act.

The civil settlement resolves a lawsuit brought 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). Private citizens can bring suit on behalf of the United States under this act and share in any government recovery; Allender will receive $414,200 from the settlement.

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

Assistant U.S. Attorney Adam D. Nugent handled the case for the U.S. Attorney’s Office for the Northern District of Georgia, which enforces federal criminal laws and represents the United States in civil matters while working with law enforcement partners to protect public safety according to its official website.

For further information about this case or other activities of the office—which maintains its primary location in Atlanta—contact details are available at the official website.



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