DaVita Inc. has agreed to pay $34,487,390 to resolve allegations it violated the False Claims Act by paying kickbacks to induce referrals to DaVita Rx, a former subsidiary.
The DOJ alleged Davita paid kickbacks to a competitor to induce referrals to DaVita Rx to serve as a “central fill pharmacy,” or prescription fulfillment provider, for that competitor’s Medicare patients’ prescriptions
In exchange, DaVita was alleged to have paid to acquire certain European dialysis clinics and agreed to extend a prior commitment to purchase dialysis products from the competitor.
The DOJ says DaVita would not have paid the price it did for these deals without the competitor’s commitment to refer its Medicare patients’ prescriptions to DaVita Rx in return.
The United States further alleged DaVita provided management services to vascular access centers owned by physicians in a position to refer patients to DaVita’s dialysis clinics.
“Medicare patients should be able to trust their healthcare providers not to pay illegal kickbacks to induce referrals”
It says DaVita paid improper remuneration to these physician-owners in the form of uncollected management fees to induce referrals to DaVita’s dialysis centers.
Finally, the DOJ claimed the company paid improper remuneration to a large nephrology practice to induce referrals to DaVita’s dialysis clinics.
DaVita was accused of giving the practice a right of refusal to staff the medical director position at any new dialysis center that opened near the nephrology practice.
Need Career Advice? Get employment skills advice at all levels of your career
It is also accused of paying the practice $50,000.
This was despite the practice’s decision not to staff the medical director position for those clinics.
Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said: “Improper financial arrangements between Medicare providers can distort the healthcare marketplace.
“We will hold accountable healthcare providers that seek to generate business by paying unlawful remuneration.”
Acting U.S. Attorney Matthew Kirsch for the District of Colorado added: “Medicare patients should be able to trust their healthcare providers not to pay illegal kickbacks to induce referrals.
“This resolution reflects the seriousness of the government’s determination to restore integrity to the healthcare marketplace.”
The claims resolved by the settlement are allegations only. There has been no determination of liability.
