Fresenius Ordered to Pay $82.6 Million to Resolve Medicare Billing Lawsuit

Fresenius Medical Care AG, the world’s biggest provider of kidney dialysis, was ordered by a judge to pay $82.6 million to resolve a lawsuit by the U.S. government and whistleblowers that it overbilled Medicare.

Fresenius must pay trebled damages of $38.9 million under the False Claims Act and statutory penalties of $43.7 million, U.S. District Judge William J. Haynes ruled yesterday in federal court in Nashville, Tennessee. The decision was made public today.

The lawsuit claimed that Fresenius, based in Bad Homburg, Germany, and two companies it now owns, Renal Care Group and Renal Care Group Supply Co., overbilled Medicare between 1999 and 2005 for home support dialysis supplies.

Terry Morris, a spokeswoman for Fresenius, said the company just received the decision and would issue a statement.

To contact the reporters on this story: David Voreacos in Newark, New Jersey at dvoreacos@bloomberg.net; Margaret Cronin Fisk in Detroit at mcfisk@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.

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