Denver’s DaVita Inc., based in Denver, Colorado, is at the center of allegations that it was mired in a kickback saga.
The United States government alleged that DaVita Inc. (DaVita) used its position as a core part of the medical world to solicit and demand improper financial arrangements and referrals.
“Medicare patients should be able to trust their healthcare providers not to pay illegal kickbacks to induce referrals,” said Acting U.S. Attorney Matthew Kirsch for the District of Colorado.
DaVita at the center of False Claims Act allegations
DaVita allegedly acted as a management consultant and operations partner for vascular access clinics. The company is presumed to have “paid improper remuneration” to the vascular physicians for referring their patients to DaVita dialysis centers.
The company was also part of an elaborate payment scheme that asked competitors to refer patients to DaVita Rx. In exchange for cash. DaVita would then receive the medicare prescriptions and the opportunity to play the part of a “central fill pharmacy,” or prescription fulfillment provider,
A major nephrology practice was also part of the government’s allegations that DaVita used the center to funnel dialysis patients to them. Da Vita, according to today’s release, “gave the practice a right of refusal to staff the medical director position at any new dialysis center that opened near the nephrology practice and paid the practice $50,000 despite the practice’s decision not to staff the medical director position for those clinics.”
DaVita has agreed to pay $34,487,390 to settle the allegations. This will close a longstanding whistleblower case under the False Claims Act.
A former employee of DaVita, Dennis Kogod, the former Chief Operating Officer of DaVita Kidney Care, brought the case forward.
“Illegal kickback payments corrupt the market for health care services and cause harm and financial loss to Medicare and other federally funded health care programs,” said Special Agent in Charge Linda Hanley of the Department of Health and Human Services Office of Inspector General (HHS-OIG).
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