Home

DaVita Agrees to $450 Million Settlement for Overcharging Government
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

agrees to $450 million settlement

Summary: DaVita Healthcare Partners has agreed to a $450 million settlement for overcharging the government for their drugs.

DaVita Healthcare Partners Inc., the largest kidney dialysis services provider in the United States, has agreed to pay $450 million to settle a whistleblower case claiming they’ve bilked the government by deliberately requiring dialysis facilities to use too large a dose of medicine only for the excess to be discarded, but nevertheless to be billed for. The settlement was announced Wednesday.

  
What
Where


The success of the case comes as a relief to nephrologist Dr. Alon Vainer and registered nurse Daniel Barbir, former employees of DaVita who took on the medicine provider without the support of the federal government. This has been the largest such settlement in the history of the nation’s federal False Claim Act without government intervention. The two whistleblowers were represented by Atlanta lawyers Marlan Wilbanks and L. Lin Wood.

“Through personal sacrifice and courage, two whistleblowers exposed knowingly wasteful practices designed simply to increase profits and improperly drain the government’s resources,” said Acting U.S. Attorney John Horn. “This settlement returns hundreds of millions of dollars to the Treasury that had been improperly obtained by DaVita through these wasteful practices.”

Two abuses by DaVita were pursued, one in which a kidney dialysis medicine was purposely prescribed based on “dosing grids,” that provided the med in single-use vials giving extra medication, which was discarded by administrators, yet billed for. When in 2011 the Centers for Medicare and Medicaid Services changed their protocol for billing, making this wastage no longer profitable for DaVita, they subsequently changed their drug dosage.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Nevertheless, the company’s chief legal officer said last month that though executives “believe strongly in the merits of this case,” they nevertheless decided, “It was in our stakeholder’s best interest to resolve it.”

They had therefore set aside $495 million to settle the case, with $45 million to cover legal fees.



News Source: Law.com



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

General Municipal Law Attorney with land use experience

USA-CA-Oakland

Oakland office of our client seeks general municipal law attorney with experience advising public ag...

Apply Now

Mid-level Restructuring Attorney with bankruptcy experience

USA-DC-Washington

Washington, D.C. office of our client seeks mid-level restructuring attorney with 4-6 years of exper...

Apply Now

Senior Land Use Attorney with experience

USA-CA-San Francisco

San Francisco office of our client seeks senior land use attorney with 7+ years of experience. The c...

Apply Now

Attorney with 3-5 years of civil litigation experience

USA-IN-Merrillville

Merrillville office of our client seeks attorney with preferably 3-5 years of civil litigation exper...

Apply Now

RELEVANT JOBS

Civil & Business Litigation / Transactional Attorney

USA-CA-Clovis

Law firm with primary emphasis in Business & Civil Litigation and transactional work, seeks confiden...

Apply now

LITIGATION ATTORNEY

USA-CA-Emeryville

Boutique East Bay litigation defense firm is seeking a junior to mid-level attorney. Candidates for ...

Apply now

Family Law Paralegal

USA-NJ-Parsippany

The right person for this job will grasp basic and complex divorce and family law issues, have stron...

Apply now

Products Liability & Mass Tort Litigation Associate

USA-GA-Atlanta

The candidate must have 1- 5 years of civil litigation experience, preferably with some background i...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top