Talks continue on possible record kickback settlement
Talks continue on possible record kickback settlement
Negotiations between the Department of Justice and Fresenius Medical Care North America of Lexington, MA, may lead to the largest criminal fine ever handed down in a health care fraud case, according to sources close to the case. That means it would top the $119 million fine paid by Needham, MA-based Damon Clinical Labs in 1996.
According to the U.S. Attorney’s Office in Boston, a company bought by Fresenius in 1996 paid physicians as much as $20 million over a nine-year period in order to secure referrals.
The company Fresenius bought, National Medical Care Inc., was the market leader in kidney dialysis equipment. Fresenius also provides extensive laboratory services focused on end-stage renal disease, according to Howard Bilow, a Fresenius spokesman.
Court papers contain accounts of extravagant parties held for physicians, hunting trips arranged for physicians, and a consistent practice of giving physicians illegal cash rebates if they bought certain machines or testing products. The government also charges that physicians were actually put on National’s payroll and provided with exorbitant salaries as medical directors at the company’s dialysis clinics.
David C. Weber, a former vice president of sales at National, already has pled guilty to giving physicians between $10 million and $20 million in kickbacks in exchange for referrals. Weber has also agreed to testify on behalf of the government in the case against Fresenius.
Bilow points out that Weber "separated from the company" in 1993, long before Fresenius acquired it. He also stresses that none of the charges concern activities that took place after the acquisition.
Neither Bilow nor representatives at the U.S. Attorney’s Office in Boston would say whether any physicians have yet been charged in the case.
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