Whistleblower Partners is proud to announce that the United States has settled our client’s False Claims Act case against international dialysis company DaVita for $34.5 million. The covered conduct concerns allegations of three novel kickback theories involving DaVita’s pharmacy business, its vascular access center business, and medical directorships at dialysis centers. After intervening and settling the case, the government awarded our client a Relator’s share of roughly $6.4 million.
We are also proud to announce our client’s role in a $270 million settlement from 2018 against DaVita HealthCare Partners, aka DaVita Medical Group. The global resolution settled allegations, brought by our client, that HealthCare Partners had violated the Antikickback Statute in its Medicare Part C business. The complaint alleged that HealthCare Partners improperly incentivized both patients, by providing gift cards to encourage them to enroll in HCP’s plans, and providers, by paying bonuses, waiving or discounting fees, and purchasing physician practices above fair market value.
Several Whistleblower Partners attorneys contributed to this matter over the last seven years, including Eric Havian, Mike Ronickher, Hamsa Mahendranathan, and Harry Litman. Our former colleagues Leah Judge, Ginger Buck, Ronny Valdes, Shari Newman and Molly Knobler also played significant roles in the case. We are happy to share this important success with our current and former colleagues.
Mike Ronickher said: “This outcome demonstrates that the Government is willing to shut down alleged kickback arrangements, no matter how cleverly hidden. With the help of whistleblowers, the Government can see through sophisticated attempts to avoid scrutiny.”
The Anti-Kickback Statute (AKS) prohibits the offering, paying, soliciting, or receiving of remuneration to induce referrals for services covered by federal healthcare programs. Violating the AKS can trigger liability under the False Claims Act, since claims for government payment "resulting from" AKS violations are considered “false claims.” Kickbacks can distort medical decisions and inflate healthcare costs, which compromises both patient care quality and the integrity of our healthcare system.
Hamsa Mahendranathan said: "Kickback schemes undermine our trust in healthcare, putting profits over patient well-being. This settlement is yet another signal of the Government's ongoing commitment to integrity and accountability in healthcare."
The attorneys at Whistleblower Partners have significant experience representing qui tam relators in healthcare fraud cases. If you would like more information or would like to speak to an attorney at Whistleblower Partners, please contact us for a confidential consultation.