DaVita to Pay Over $34M to Resolve Allegations of Illegal Kickbacks

By Charlotte Robinson - Last Updated: July 23, 2024

DaVita has agreed to pay $34,487,390 to resolve allegations that it violated the False Claims Act.

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The company is accused of paying kickbacks to a competitor to generate referrals to former subsidiary DaVita Rx to serve as a “central fill pharmacy,” or prescription fulfillment provider, for the competitor’s Medicare patients. In return, it is alleged that DaVita paid to acquire certain European dialysis clinics and agreed to extend a commitment to purchase dialysis products from the competitor.

The United States also alleges that DaVita provided management services to vascular access centers owned by physicians in a position to refer patients to DaVita’s dialysis clinics and paid improper remuneration to these physicians in the form of uncollected management fees to encourage such referrals. It is also alleged that DaVita paid improper remuneration to a large nephrology practice to induce referrals to DaVita’s dialysis clinics.

The settlement resolves these allegations and claims brought under the whistleblower provisions of the False Claims Act by Dennis Kogod, a former chief operating officer of DaVita Kidney Care. The settlement does not, however, reflect any determination of liability.

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