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Whistleblower Suit Earns Near $20 Million Judgment; Renal Care Group Held Liable for False Billing of Dialysis Supplies

April 14, 2010

According to an internal audit of Renal Care Group Supply Company, “one hundred percent of the company’s files were missing information that Medicare required for billing.”  But, according to the findings of a federal judge, the company ignored this and other warning signals that their business model violated Medicare regulations.  The result: an award of $19,366,705 plus interest in favor of the United States and the whistleblowers who exposed the fraud against Renal Care Group, Renal Care Group Supply Company and Fresenius Medical Care Holdings, Inc.  The Court’s Order which was previously reported by FraudBlawg discusses:

“complaints and concerns of multiple Renal Care Group employees who complained about the operation and Medicare billing activity of the Renal Care Group Supply Company, including one employee who wrote ‘I do not wish to go to jail’ and felt the company ‘was not in the best interests of patients’ after receiving a corporate directive about converting patients into the Renal Care Group Supply Company.”

According to DoJ and HHS, the scheme involved a “sham billing company,” that was not independent — according to Medicare regulations — from Renal Care Group and was designed to circumvent Medicare regulations for the supply of home dialysis equipment. Additionally, the suit alleged that Renal Care Group “interfered with patients’ choice of supply options, requiring patients to ‘move’ to [their own supply company].”

READ THE COURT’S MEMORANDUM OPINION HERE.

To report Medicare fraud, contact Frohsin & Barger.

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