Investigation of DaVita Inc.
DaVita Inc. (DVA) to Pay Massive $270 Million Settlement for Cheating Medicare
The U.S. Department of Justice announced that DaVita Medical Holdings agreed to pay $270 million to resolve allegations of Medicare billing fraud. The settlement follows purported inaccurate coding practices by HealthCare Partners, one of DaVita’s physician networks. HealthCare Partners allegedly advised its doctors to use an improper diagnosis code for a spinal condition that boosted Medicare reimbursements. The settlement also resolves allegations by a whistleblower that HealthCare Partners searched its patients’ medical records for diagnoses its providers may have failed to record, and then submitted these “missed” diagnoses in order to obtain increased Medicare payments.