DaVita Healthcare Partners, Inc. (DaVita) has settled with the government for $350 million to resolve claims that it paid kickbacks to induce referrals of patients to its dialysis clinics, violating the False Claims Act. DaVita, headquartered in Denver, Colorado maintains dialysis clinics in 46 states and the District of Columbia.
From 2005 through 2014, DaVita allegedly offered physicians with significant patient populations suffering renal dialysis, profitable opportunities to enter into a joint venture with DaVita. DaVita offered to acquire or sell an interest in dialysis clinics to which patients would be referred for dialysis treatment. Additionally, DaVita entered into agreements with physicians, in which physicians agreed to not compete with the DaVita clinic and non-disparagement agreements which prohibited physicians from referring patients to other dialysis providers.
DaVita has also agreed to a Civil Forfeiture in the amount of $39 million related to two specific joint venture transactions. Further, DaVita has entered into a Corporate Integrity Agreement (CIA) with the Office of Counsel to the Inspector General of the Department of Health and Human Services.
The Department of Justice news release is available at:
Department of Justice. “DaVita to Pay $350 Million to Resolve Allegations of Illegal Kickbacks.” Justice News. 22 Oct. 2014.