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The audit objectives to (1) determine whether Florida Urology Physicians, P.A. (the Practice) claimed reimbursement for pathology laboratory services in accordance with Medicare Part B requirements from September through December 2004 and (2) analyze the Practice's utilization and pattern for pathology services. The Practice’s claims for pathology laboratory services generally complied with Medicare Part B requirements. We noted an increase in the number of pathology services requested and performed after the Practice opened its own laboratory, which increased costs to the Medicare program. However, the Practice explained that the increased number of tissue examination requests were an attempt to more fully meet the needs of its patients. The audit report did not contain any recommendations for the Practice.