Coppell, Texas-based DaVita Rx, a pharmacy services unit of Denver-based DaVita, will pay $63.7 million to resolve False Claims Act allegations, according to the Department of Justice.
The settlement resolves allegations that DaVita Rx billed government payers for prescription medications that were never shipped, that were shipped but subsequently returned, and that did not meet requirements for documentation of proof of delivery, refill requests or patient consent.
The settlement also resolves allegations that the company violated the Anti-Kickback Statute by paying financial inducements to beneficiaries of federal healthcare programs. Specifically, DaVita Rx is accused of accepting manufacturer copayment discount cards instead of collecting copayments from Medicare beneficiaries, writing off unpaid beneficiary debt, and extending discounts to beneficiaries who paid for medications with credit cards, according to the DOJ.
The claims against DaVita Rx were originally brought by two former employees under the qui tam, or whistle-blower, provisions of the False Claims Act.
More articles on healthcare industry lawsuits:
California anesthesiologist charged with murder after physician dies while under his care
Whistle-blower: Johns Hopkins prioritizes out-of-state patients to boost revenue
5 Broward Health leaders indicted on criminal charges: 7 things to know