Navigation Links
Fresenius Medical Holdings, Inc. Ordered To Pay $19.4 Million For Fraudulent Medicare Claims

Whistleblower lawsuit results in a ruling that Renal Care Group, a dialysis company formerly headquartered in Nashville must pay $19.4 million plus interest to the United States government after it allegedly set up a shell company in order to inflate its Medicare billing.

Philadelphia, PA (PRWEB) March 24, 2010 -- United States District Court Judge William J. Haynes, Jr. issued an order on March 22, 2010 awarding the United States $19,366,705.00 plus prejudgment interest on unjust enrichment claims against Renal Care Group (“RCG”), RCG Supply Company (“RCGSC”) and Fresenius Medical Care Holdings, Inc. as the successor-in-interest to RCG and RCGSC. This award to the United States arises from claims made in a whistleblower complaint alleging fraudulent Medicare and Medicaid billing practices by RCG and RCGSC that violated the False Claims Act. Philadelphia-area law firms Kenney & McCafferty and Egan Young filed the Complaint.

RCG engaged in a multi-state scheme whereby it created a sham supply company, RCGSC, solely to take advantage of higher reimbursement rates paid for home dialysis supplies under the now defunct Medicare Method II billing program, according to the qui tam Complaint filed on behalf of former RCG employees, Julie Williams and John Martinez, M.D.

Between January 1999 and December 2005, RCGSC submitted claims for reimbursement to the Medicare program for home dialysis equipment and supplies provided to End-Stage Renal Disease (“ESRD”) patients. All of these claims, as well as related claims for support services rendered by RCG dialysis clinics were ineligible for reimbursement because RCGSC was not qualified to bill Medicare for these home dialysis patients.

“This ruling serves as a significant reminder that fraudulent Medicare billing practices are not going to be tolerated. RCG was aware, as evidenced by their own internal communications and documents, that they were attempting to operate ‘above the law.’ Through the persistence and dedication of the government and our clients, the Court has rendered justice,” said Brian Kenney, who along with Kenney & McCafferty lawyer Emily Lambert and Egan Young attorney, Eric L. Young, represented the whistleblowers.

According to Eric Young, “RCG’s operation of a bogus supply company in order to artificially increase its Medicare reimbursements came at a great cost to taxpayers. Due to the courageousness of people like Ms. Williams and Dr. Martinez, in addition to the hard work and tenacity of counsel, including federal prosecutors, Andrew Lay and Laurie Oberembt, Fresenius is being held accountable for RCG’s misconduct. It is our hope that this decision will encourage more people who become aware of fraud on the government to step forward, particularly when waste and abuse of our tax dollars is at an all time high.”

Emily Lambert agreed stating “RCG’s operations not only took advantage of taxpayers through fraudulent Medicare billing, they also took advantage of the sick and vulnerable nature of their patients using their Medicare beneficiary status to line corporate pockets."

In granting judgment for the United States, Judge Haynes found that RCG and RCGSC were unjustly enriched by their receipt of Method II payments for dialysis supplies that RCGSC procured unlawfully. Additionally, the Court found that the supply company itself was not a legitimate supplier of home dialysis supplies.

The federal investigation into RCG’s fraudulent billing practices was conducted by the U.S. Attorney’s Office for the Eastern District of Missouri under the direction of acting U.S. Attorney Michael W. Reap, and Assistant U.S. Attorney Andrew Lay with the assistance of the U.S. Attorney’s Office for the Middle District of Tennessee, under the direction of U.S. Attorney Edward Yarborough, and Assistant U.S. Attorney Lisa Rivera, and Laurie Oberembt from the Department of Justice.

United States ex rel. Williams, et al. v. Renal Care Group, et al.
Middle District of Tennessee CA No.: 3:09-00738

# # #

Read the full story at

Source: PRWeb
Copyright©2010 Vocus, Inc.
All rights reserved

Related medicine news :

1. HCG True Diet – Dr. Robert True Speaks About the Importance of Medical Supervision for HCG Diets
2. Children's National Medical Center Achieves Magnet Designation
3. Central Illinois Electronic Health Records Summit Coming in April; Medical Conference Offered In Three Central Illinois Locations
4. National Medical Association, Health System Reform - From Legislation to Implementation
5. National Hispanic Medical Association Urges U.S. to Improve Health Care Access as Doctors Meet March 25-28 in Washington
6. Medical Marketing Newsletter Reaches 10,000 Subscribers
7. Georgia Firm Adds Medical Travel to Cut Costs, Provide Options for Workers
8. Ensemble Healthcare Properties Purchases North Valley Medical Plaza
9. Cosmetic Surgery Error in New York Strikes Medical Malpractice Lawyers as Unsurprising
10. Gays, Lesbians Excluded From Some Medical Studies
11. Azia Medical Spa in Birmingham, AL to Host Two Day Grand Opening Event March 25 and March 26, 2010.
Post Your Comments:
(Date:11/29/2015)... San Jose, CA (PRWEB) , ... November 29, 2015 , ... ... Bay Area, is proud to announce their December, 2015, featured apartment community: Epic. In ... looking for corporate housing in the tight Bay Area rental market to efficiently find ...
(Date:11/28/2015)... ... 2015 , ... Safe storage for contraceptive devices may not always be easy ... Jersey and the other from Bradley Beach, New Jersey, there is an easy solution ... having to replace NuvaRings more often than necessary. As such, it affords peace of ...
(Date:11/28/2015)... ... , ... Beginning November 30th at 6:00 a.m. EST until 11:59 p.m. EST, ... of up to 20% off orders $80 or more to free gifts with purchases, there ... , As a competitive e-commerce website for skin care and cosmetic needs, customers will save ...
(Date:11/27/2015)... ... November 28, 2015 , ... There is only one major question facing ... last year? , This question has not been an easy question to answer. Especially ... age and the younger workforce don’t share the same discipline around working long hours. ...
(Date:11/27/2015)... ... November 27, 2015 , ... According to an article published ... Toronto and the University of British Columbia suggested that laws requiring bicyclists to wear ... explains that part of the reason for the controversial conclusion is that, while helmets ...
Breaking Medicine News(10 mins):
(Date:11/26/2015)... Nov. 26, 2015 Research and Markets ... the "2016 Future Horizons and Growth Strategies ... Supplier Shares, Country Segment Forecasts, Competitive Intelligence, Emerging ... --> --> This ... the Italian therapeutic drug monitoring market, including emerging ...
(Date:11/26/2015)... , November 26, 2015 ... the addition of the  "2016 Future ... European Cell Surface Marker Testing Market: ...  report to their offering.  --> ... addition of the  "2016 Future Horizons ...
(Date:11/25/2015)...  The total global healthcare industry is expected to grow ... Latin America has the highest projected growth at ... Japan ), is second with growth projected at 11.5%. ... healthcare expenditure. In 2013-2014, total government funded healthcare was nearly ... to 41.2% in 2013-2014. In real terms, out of pocket ...
Breaking Medicine Technology: