U.S. Renal Settles False Claims for $7.3M; Whistleblower to Get $1.3M

Texas-based U.S. Renal Care has agreed to pay $7.3 million to resolve allegations that their subsidiary, Dialysis Corporation of America (DCA), violated the False Claims Act by knowingly submitting false claims to the Medicare program for more medication than was actually administered to dialysis patients, the U.S. Department of Justice announced today.

Epogen is an intravenous medication that is used to treat anemia, a common condition afflicting patients with end-stage renal disease.  Epogen vials contain a small amount of medication in excess of the labeled amount, known as “overfill,” to compensate for medication that may remain in the vial after extraction and in the syringe upon administration.  The United States contends that DCA billed for 10‑11% overfill whenever it administered Epogen; however, the types of syringes DCA used did not allow DCA to withdraw and administer 10‑11% overfill every time it administered Epogen to patients.  Thus, DCA submitted false claims to Medicare that overstated the amount of Epogen that it was actually providing.

The lawsuit was originally filed by Laura Davis, a nurse at one of DCA’s facilities, under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private citizens with knowledge of fraud to sue on behalf of the government and claim a share in the recovery.  Davis will receive $1,314,000 as part of the settlement.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.