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Fresenius Medical Holdings, Inc. Ordered To Pay $19.4 Million For Fraudulent Medicare Claims
Date:3/24/2010

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
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Source: PRWeb
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