DaVita to pay $34M to settle kickback allegations
Dialysis and kidney care chain DaVita is paying out more than $34 million to resolve allegations it was paid illegal kickbacks when it referred patients to its DaVita Rx pharmacies, a former subsidiary. The U.S. Department of Justice (DOJ) announced the settlement July 18.
The DOJ said DaVita would offer physicians illegal payments to refer their patients to the DaVita pharmacy even when those patients were being seen by a non-DaVita nephrologist. In exchange, DaVita agreed to buy the clinics of some competitors and expand its foothold in Europe.
Many of the prescriptions were paid for by Medicare, the DOJ claimed.
“Medicare patients should be able to trust their healthcare providers not to pay illegal kickbacks to induce referrals,” Matthew Kirsch, U.S. Attorney, District of Colorado, said in a statement. “This resolution reflects the seriousness of the government’s determination to restore integrity to the healthcare marketplace.”
The DOJ also alleged that DaVita also paid out remuneration to vascular access physicians as part of the scheme to to secure referrals to its kidney care clinics. DaVita was able to do so by offering those physicians care management services, paying the doctors kickbacks through uncollected management fees, authorities claimed.
In a specific example, DaVita allegedly sent a $50,000 payment to a large nephrology practice to entice patient referrals. As part of the illegal deal, the practice was allowed to provide input for staffing at any new DaVita dialysis center that opened nearby.
DaVita does not admit to any liability or wrongdoing, and the DOJ said the claims of criminal acts are “allegations only.” Those allegations are now resolved with the $34,487,390 payout.
HealthExec reached out to DaVita for comment and received the following statement:
“We have worked closely with the government for the past seven years to investigate these allegations, which involve transactions that date back more than a decade and largely involve business units we no longer operate and people who haven’t been with the company for years. While we deny any liability, we agreed to this resolution to close this chapter and move forward. We remain committed to compliance and operating with the highest integrity as we focus on the future of kidney care and doing what we do best: serving our patients.”
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.