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DaVita Healthcare to Pay $350 Million for False Claims Act Violations

Jaclyn Jaeger | November 4, 2014

DaVita Healthcare Partners, a dialysis services provider, agreed last month to pay $350 million to the Department of Justice to resolve claims that it violated the False Claims Act.

According to the allegations, from 2005 to 2014, DaVita paid kickbacks to physicians or physician groups to induce the referral of patients to its dialysis clinics. “This case involved a sophisticated scheme to compensate doctors illegally for referring patients to DaVita’s dialysis centers,” said U.S. Attorney John Walsh. 

DaVita further ensured referrals of these patients to the clinics through a series of secondary agreements with the physicians, including entering into agreements in which the physician agreed not to compete with the DaVita clinic and non-disparagement agreements that would have prevented the physicians from referring their patients to other dialysis providers. ...

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