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Brooklyn Dialysis Providers Settle Civil Fraud Claims For More Than $9.5M

Defendants allegedly caused Medicaid to be double-billed for drugs administered to patients with end-stage renal disease.
NY Supreme Court, Brooklyn
New York Supreme Court, Brooklyn. Photo: Nigel Roberts for BK Reader.

Agreements have been reached with several entities that provided dialysis treatment and services to patients suffering from chronic kidney failure. The defendants have agreed to pay a total of more than $9.5 million to settle civil fraud allegations that they caused double-billing to the Medicaid Program for certain medications.

“No patients, especially those suffering from chronic diseases, should ever be used by health care providers to defraud Medicaid,” said Breon Peace, United States Attorney for the Eastern District of New York. “This settlement sends a strong message that our office will vigorously prosecute anyone whose practices jeopardize Medicaid for their own enrichment.”

The Medicaid Fraud Control Unit of the Office of the New York State Attorney General partnered with the Government’s investigation for the resolution of this important case. 

The Government’s investigation revealed that, from 2000 through 2010, dialysis clinics and management companies improperly caused claims to be made to Medicaid for certain injectable drugs that were administered during the course of dialysis treatment for chronic kidney failure.

The injectable drugs had already been paid for by Medicaid as part of the composite dialysis payments received by the clinics for dialysis treatments.

Under the terms of the agreements, these providers, including DaVita Healthcare Partners, Inc., Bay Ridge Sunset Park Dialysis Center, Inc., Midwood Chayim Aruchim Dialysis Associates, Inc., New York Artificial Kidney Center, Inc., The Rogosin Institute, Nephrology Foundation of Brooklyn, Terence Cardinal Cooke Health Care Center, New York Renal Associates, Inc., and Dialysis Clinic, Inc., have paid $3,967,083.38 to the United States under the federal False Claims Act and $5,629,151.20 to New York State under New York State’s False Claims Act.