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Home Dialysis Equipment Supplier Ordered to Pay $19M+ for False Claims

March 24, 2010

A federal district judge awarded a whistleblower and the government $19,366,705 plus interest for false claims act and unjust enrichment allegations against Renal Care Group, Renal Care Group Supply Company, (RCGSC) and Fresenius Medical Care Holdings, Inc. According to findings by U.S. District Judge William J. Haynes, Jr., the DME companies “recklessly disregarded federal law when billing the Medicare program for home dialysis supplies and equipment from 1999 to 2005.” The Court’s opinion can be read in its entirety below:

In addition to striking an important blow against DME fraud, the opinion is significant in that it is one of few opinions that demonstrates how a company’s knowledge of false claims may be proven through evidence of reckless disregard of the Medicare regulations. Testimony in the case tended to show that while the company may have “technically” met certain independence requirements, “from a practical standpoint” the company was violating the spirit and the purpose of the Medicare regulations by causing a “benefit financially to the dialysis company to direct patients into the supply company.”


To report dialysis equipment fraud or other DME fraud or Medicare Fraud, contact Frohsin & Barger.

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