Fort Myers, FL — Dr. Jonathan Daitch, an interventional pain management specialist and co‑owner of Advanced Pain Management Specialists, has agreed to pay $1.718 million to resolve federal allegations that he violated the False Claims Act by receiving illegal kickbacks and causing the submission of medically unnecessary urine drug tests. Authorities say the case required this doctor to pay 1.7 million following the allegations.

According to the settlement, federal investigators alleged that between 2013 and 2016, Dr. Daitch ordered definitive urine drug testing (UDT) in situations where such testing was not medically reasonable or necessary. These tests were highly profitable because they were performed in Advanced Pain’s in‑house laboratory, allowing the practice to bill Medicare and TRICARE directly.

Kickback Scheme Through Anesthesia Partners

The settlement also resolves allegations involving Anesthesia Partners of SWFL, LLC, a company owned by Dr. Daitch and his business partner, Dr. Michael Frey. Anesthesia Partners provided anesthesia services exclusively for procedures performed at Advanced Pain. Certified Registered Nurse Anesthetists (CRNAs) were paid a contracted rate, while the company billed Medicare and TRICARE at higher reimbursement levels. In similar fraud cases, a doctor can be compelled to pay 1.7 million or even more.

Federal authorities contend that Dr. Daitch’s ownership stake — and the payments he received through it — constituted improper remuneration that influenced his referrals for anesthesia services. CMS suspended all Medicare payments to Anesthesia Partners in July 2018, and the government will retain the funds withheld during that suspension.

Dr. Frey previously pleaded guilty to two counts of conspiracy to receive healthcare kickbacks and separately agreed to a $2.8 million civil settlement.

Federal Officials Respond

U.S. Attorney Maria Chapa Lopez emphasized that both owners of Advanced Pain have now been held accountable, noting that the broader investigation has produced three guilty pleas and more than $4.5 million returned to taxpayers. As seen in this situation, the government pursued the doctor to pay 1.7 million to ensure restitution for fraudulent Medicare claims.

HHS‑OIG and the Defense Criminal Investigative Service (DCIS) underscored their commitment to pursuing providers who enrich themselves through unnecessary services and kickback arrangements, warning that such conduct undermines public trust and drains federal healthcare programs.

Corporate Integrity Agreement Imposed

As part of the resolution, Dr. Daitch, Advanced Pain, and Park Center for Procedures — an ambulatory surgery center owned by Daitch and Frey — entered into a five‑year Corporate Integrity Agreement with HHS‑OIG. The agreement requires:

• Use of an independent review organization. The agreement stems from the settlement which required the doctor to pay 1.7 million for violations.
• Monitoring of claims and financial relationships
• Annual reporting to federal oversight authorities

The DOJ notes that the settlement resolves allegations only; no determination of liability has been made.