Dialysis providers to pay $9.5M to settle billing fraud allegations

Several dialysis providers agreed to pay more than $9.5 million to settle allegations they double billed Medicaid for certain medications. 

The government alleged that from 2000 through 2010, the dialysis clinics and management companies improperly caused claims to be made to Medicaid by retail pharmacies for certain injectable drugs that were administered during the course of dialysis treatment for end-stage renal disease, according to an Oct. 23 Justice Department news release. The drugs had already been paid for by Medicaid as part of the composite dialysis payments received by the dialysis clinics and management companies for dialysis treatments. 

The companies agreed to pay $3,967,083.38 to the U.S. under the federal False Claims Act and $5,629,151.20 to New York under the state's False Claims Act. 

The companies that settled allegations are:

  • DaVita Healthcare Partners
  • Bay Ridge Sunset Park Dialysis Center
  • Midwood Chayim Aruchim Dialysis Associates
  • New York Artificial Kidney Center
  • The Rogosin Institute (for itself and as successor-in-interest to Nephrology Foundation of Brooklyn) 
  • Terence Cardinal Cooke Health Care Center 
  • New York Renal Associates 
  • Dialysis Clinic (alleged conduct occurred between 2006 and 2010) 

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