Denver-based DaVita HealthCare Partners has reached a settlement that will pay Colorado and four other states their portion of a federal civil anti-kickback case that probed the company’s transactions with doctors.
The settlement with the states is related to an October announcement from the U.S. Justice Department that the company would pay $350 million and a civil forfeiture fine of $39 million to resolve a federal civil investigation.
Federal prosecutors said that the company paid kickbacks to doctors in exchange for dialysis patients that fueled profits.
DaVita officials in the past have said they do not believe there was any intentional wrongdoing.
“This is related to last year’s previously announced settlement and represents the final administrative step in our agreement reached in October with the U.S. Justice Department and five states, including Colorado,” DaVita spokesman Skip Thurman said.
Colorado Attorney General John Suthers, in a release, said Colorado, California, Florida, Kentucky and Ohio will share $22 million. Colorado’s portion is $3 million.
The amounts the company will pay the states will be less since some of that money involves federal payments.
“This represents a significant recovery for Colorado’s Medicaid program,” Suthers said in a release. “Colorado will not tolerate any arrangement that appears to compromise the objectivity of physicians and the efficiency of the Medicaid program.”
Further state settlements aren’t expected from the case.
As part of the settlement with the U.S. Justice Department, DaVita agreed to have an independent monitor review its arrangement with physicians.
The company also announced that it would end joint ventures with kidney doctors involving 26 dialysis clinics. Those clinics were operated through 11 joint ventures DaVita had reached with kidney doctors. The Denver-based dialysis provider is responsible for kidney care to nearly 170,000 patients in the United States.
The company in 2012 also settled a whistle-blower lawsuit and agreed to pay $55 million for other fraud claims. In that case, a former employee of Epogen-maker Amgen alleged that DaVita overused the anemia drug.
Christopher N. Osher: 303-954-1747, cosher@denverpost.com or twitter.com/chrisosher
