Capsule endoscopy is used as an initial diagnosis of a condition, a follow-up to another procedure, or to further evaluate your condition during or after a treatment. Common indications for a capsule endoscopy procedure include evaluation of obscure GI bleeding, iron deficiency anemia, ulcerations, erosions, inflammation, tumors, masses, Crohn’s disease, Celiac disease, malabsorption, abdominal pain and diarrhea.