Navigation Links
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 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 http://www.prweb.com/releases/2010/03/prweb3774364.htm.


'/>"/>
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:
*Name:
*Comment:
*Email:
(Date:2/27/2017)... ... February 27, 2017 , ... Orange County dentist, Dr. A. Rassouli, ... that occurs when the bacteria in plaque infect the gums and other tissues supporting ... and root planing or SRP, and can include surgical therapies if the condition has ...
(Date:2/27/2017)... ... February 27, 2017 , ... ... alcohol treatment programs in British Columbia, Canada, at https://www.sunshinecoasthealthcentre.ca/ , is proud ... The new hire, Mackenzie Alsager, showcases the Centre's commitment to innovation in drug ...
(Date:2/26/2017)... , ... February 26, 2017 , ... ... for entries to the 7th Edition of International Social Design Awards. , ... Professionals, Product Designers, System Designers, Governments and Institutions worldwide with realized projects and ...
(Date:2/26/2017)... ... February 26, 2017 , ... ... new technology standard in staffing, scheduling, and reporting for healthcare organizations. This ... activity throughout the entire staffing process. StaffBridge technology improves staffing efficiency, maximizes ...
(Date:2/24/2017)... ... February 24, 2017 , ... HealthPostures, ... Go. Core benefits and advantages built into the home office sit stand solution ... and feel. Ability to gain the benefits embedded in the TaskMate Go are ...
Breaking Medicine News(10 mins):
(Date:2/27/2017)... 27, 2017  International Biophysics Corporation, a global medical device ... announced a 34% revenue growth in 2016 when compared to ... sales.  This growth was fueled by its AffloVest® sales in ... the expansion of its global sales of surgical product lines. ... "As we enter our 25 th year in delivering ...
(Date:2/27/2017)... , Feb. 27, 2017  Infinity Pharmaceuticals, Inc. ... the Cowen and Company 37 th Annual Healthcare ... ET in Boston, MA. A ... the Investors/Media section of Infinity,s website at www.infi.com ... the event. About Infinity,Infinity is an innovative ...
(Date:2/27/2017)... NEW YORK , February 27, 2017 ... (PII) celebrates the pharmaceutical companies that are most successful at ... ... question: if you gave the same molecule to two different ... it? Based on systematic, objective analysis of each ...
Breaking Medicine Technology: