DaVita to Pay $350 Million to Resolve Allegations of FCA Violations

22nd October 2014

The DOJ announced today that DaVita Healthcare Partners, Inc., one of the leading dialysis services providers in the U.S., has agreed to pay $350 million to settle claims that it violated the False Claims Act by paying kickbacks to induce referral of patients to its dialysis clinics.  Under the government’s theory of the case, DaVita identified physicians and practice groups that served large populations of kidney disease patients in a specific geographic area, targeting patients that were “young and in debt.” DaVita then allegedly offered the physicians prohibited favorable joint-venture referral arrangements. The physicians also agreed not to compete with DaVita or send patients to DaVita competitors, the government said.

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