A federal grand jury in Denver is investigating the relationship between dialysis company DaVita and Denver Nephrology to determine whether kickbacks were involved in patient referrals, according to a Denver Post report.
In 2008, DaVita sold 49-percent ownership in seven dialysis clinics to Denver Nephrology for $1.89 million. Those clinics generated estimated annual revenues of more than $28 million, according to the report.
DaVita had offered 40 percent ownership to another group of Denver physicians for eight times that price approximately 17 months earlier. That offer was rejected, which prompted the company to approach Denver Nephrology, according to the report.
DaVita has said the value of the clinics had decreased by the time of its deal with Denver Nephrology because another major dialysis competitor entered the market.
The grand jury is apparently considering whether the sale price in 2008 was dramatically below fair-market value at the time and served as a kickback for patients. Denver Nephrology and DaVita have indicated they are both fully cooperating with the grand-jury investigation.
Spine Device Company DFine Settles Kickback Charges With $2.39M
New York Downtown Hospital Settles Medicaid Fraud, Kickback Allegations
In 2008, DaVita sold 49-percent ownership in seven dialysis clinics to Denver Nephrology for $1.89 million. Those clinics generated estimated annual revenues of more than $28 million, according to the report.
DaVita had offered 40 percent ownership to another group of Denver physicians for eight times that price approximately 17 months earlier. That offer was rejected, which prompted the company to approach Denver Nephrology, according to the report.
DaVita has said the value of the clinics had decreased by the time of its deal with Denver Nephrology because another major dialysis competitor entered the market.
The grand jury is apparently considering whether the sale price in 2008 was dramatically below fair-market value at the time and served as a kickback for patients. Denver Nephrology and DaVita have indicated they are both fully cooperating with the grand-jury investigation.
Related Articles on Kickbacks:
Amgen Sets Aside $780M for Whistleblower, Kickback SuitsSpine Device Company DFine Settles Kickback Charges With $2.39M
New York Downtown Hospital Settles Medicaid Fraud, Kickback Allegations