The physician faction of Denver-based kidney care giant DaVita Inc. has agreed to a $270 million settlement with the U.S. Department of Justice for providing inaccurate information that led to inflated Medicare payments.
DaVita reported the issues to federal officials after acquiring HealthCare Partners Holdings for $4.4 billion in 2012, leading to an investigation that resulted in Monday's settlement, says a department news release. Improper diagnosis codes were used by HealthCare Partners doctors in California and Nevada but not in the Colorado Springs physician practices that DaVita later acquired.
“The settlement announced today reflects close cooperation with the government to address practices largely originating with HealthCare Partners. The settlement will be paid with escrow funds that DaVita required be set aside by the former owners of HealthCare Partners in 2012 during its acquisition," DaVita said Monday in an emailed statement.
DaVita has agreed to sell its medical practices, now called DaVita Medical Group, to UnitedHealth Group for $4.9 billion.