DaVita spent $730,000 lobbying in second quarter

Associated Press
DaVita spent $730,000 lobbying in second quarter
Associated Press 08.12.08, 2:57 PM ET

WASHINGTON -

DaVita Inc., which operates kidney dialysis centers, spent $730,000 lobbying the federal government in the second quarter, according to a recent disclosure form.

The El Segundo, Calif.-based company lobbied on bills that control how the government pays for kidney dialysis services, according to form filed July 21 with the House clerk's office.

DaVita (nyse: DVA - news - people ) has a huge stake in policies that affect dialysis reimbursement since the government pays for the care of nearly all 390,000 people in the U.S. on dialysis.

Lawmakers recently passed legislation aimed at changing how the government pays for Amgen Inc. (nasdaq: AMGN - news - people )'s anemia drug Epogen, a $2.5 billion product used exclusively in kidney dialysis centers. The biotech drug boosts patients' red blood cell counts, reducing the need for blood transfusions.

Medical experts have warned that Medicare's current payment policy encourages doctors to overprescribe the drug to receive more government reimbursement. The bill passed last month orders government investigators to explore paying for Epogen under a new system, in which the drug's cost would be lumped into payments for all other dialysis-related services.

If the policy is adopted, dialysis center operators like DaVita are expected to cut down on their use of Epogen.

Besides Congress, DaVita lobbied the Centers for Medicare and Medicaid Services, Congressional Budget Office, Department of Health and Human Services, and other agencies in the April-June period.

Sarah Hamlett, former legislative director for Rep. Thelma Drake, R-Va., was among those lobbying on the company's behalf.

http://www.forbes.com/feeds/ap/2008/08/12/ap5315037.html