$450 Million Whistleblower Case Settles

DaVita Healthcare Partners, Inc, the nation’s largest provider of dialysis clinics, has agreed to pay $450 million to resolve a whistleblower lawsuit to resolve claims that it violated the False Claims Act. The lawsuit alleged that DaVita intentionally billed the federal government for drugs that were discarded and that DaVita specifically designed protocols to create unnecessary waste of two drugs administered at dialysis.

DaVita allegedly required its employees to provide the drugs in dosing grids that were designed to maximize the amount of the drug increased to the patients. DaVita then allegedly billed the federal government not only for the amount of the drug provided, but also for discarded amount. At the time DaVita allegedly engaged in this scheme, Medicare reimbursed dialysis providers for drug amounts wasted in good faith. The two whistleblowers alleged in their complaint that DaVita designed the dosing grids to increase unnecessary waste and the amount billed to the government.

The two whistleblowers stand to receive $110 million after prosecuting the case for 8 years. The federal government initially declined to intervene in the case and the whistleblowers “engaged in extensive and exceptional litigation efforts.” Under the qui tam provisions of the False Claims Act, whistleblowers can sue on behalf of the government for false claims and share in any recovery, typically 25-30%.

Stephen Danz & Associates has extensive experience representing whistleblowers in different cases, including defense contractor fraud, health insurance fraud, pharmaceutical fraud, and tax fraud. Contact us today for a free consultation if you think your company may be violating the law or deceiving the government. We will protect your rights and help expose unethical behavior. July 30th may be National Whistleblower Day. Let’s fight together to end fraud.