DaVita sets aside more contingency funds

[okarol]

DaVita sets aside more contingency funds

The Denver Post
POSTED:   11/05/2013 05:14:16 PM MST1 COMMENTS|

Dialysis giant DaVita HealthCare Partners has set aside an additional $97 million on top of $300 million the company put in a contingency fund this year to settle criminal and civil anti-kickback investigations.

Denver-based DaVita announced in an earnings call with shareholders Tuesday that the company is in settlement talks with the U.S. attorney's office in Denver, the U.S. Department of Justice and the Office of the Inspector General.

"Discussions have advanced to a point where we believed it was appropriate to accrue an additional $97 million to our estimated loss contingency reserve in the current quarter," the company said in a news release.

The criminal case relates to a Denver federal grand jury investigation into the relationship between DaVita and one of the city's largest kidney doctors' offices. The probe has focused on whether the dialysis company paid a kickback to those doctors to guarantee a steady stream of patients.

The anti-kickback law prohibits accepting money or making payments for the purpose of influencing where patients seek treatment.

The company reported third-quarter net income of $136.6 million, or 64 cents per share, down from $144.7 million, or 75 cents per share, the same period a year ago.



Read more: DaVita sets aside more contingency funds - The Denver Post http://www.denverpost.com/breakingnews/ci_24460931/davita-sets-aside-more-contingency-funds

[Rerun]

CROOKS!  At least they are getting somewhat caught!

     

[thegrammalady]

Apparently the Denver Post doesn't like to name names. The medical practice is "Denever Nephrology".