Last week (July 18), DaVita Inc., a major player in the dialysis industry, agreed to pay roughly $34 million to settle allegations it violated the False Claims Act through the payment of illegal kickbacks. Constantine Cannon represented the courageous whistleblower who came forward to blow the whistle on this alleged scheme. The Denver-based healthcare giant, known for its extensive network of dialysis treatment centers, was accused of manipulating the system for their own financial gain. 

According to the government and our client’s allegations, DaVita engaged in a complex scheme to pay off their competitors, nephrologists, and vascular access physicians. The company reportedly persuaded one competitor by paying them to make referrals to DaVita Rx, essentially purchasing referrals for Medicare patients’ prescriptions. This exchange also involved DaVita acquiring European dialysis clinics and extending a previous agreement to buy dialysis products from the competitor. 

The charges against DaVita also included providing free management services to vascular access centers owned by physicians who could refer patients to DaVita’s clinics. DaVita also allegedly paid $50,000 to a large nephrology practice in exchange for the practice’s right of refusal to staff medical director positions at new DaVita centers, even when the practice declined to take on these roles. 

“Improper financial arrangements between Medicare providers can distort the healthcare marketplace,” said Brian M. Boynton, Principal Deputy Assistant Attorney General of the Justice Department’s Civil Division reflecting on the allegations.  

Acting U.S. Attorney Matthew Kirsch for the District of Colorado emphasized that Medicare patients should trust their healthcare providers to act ethically. “This resolution reflects the seriousness of the government’s determination to restore integrity to the healthcare marketplace,” Kirsch remarked. 

Linda Hanley, Special Agent in Charge of the Department of Health and Human Services Office of Inspector General (HHS-OIG), also weighed in, condemning kickback arrangements as a corruption of the healthcare market that causes financial harm to Medicare and other federally funded programs. 

Going after healthcare kickback arrangements remains a top priority for the government.  

If you have information about potential kickback violations or Healthcare Fraud more broadly, or would like to learn more about Whistleblower protections laws, you can speak to an experienced Constantine Cannon whistleblower lawyer team member. Please don’t hesitate to contact us for a free and confidential consultation.   

Read Constantine Cannon Whistleblower Client Secures $34 Million Settlement in DaVita Kickback Case at constantinecannon.com