Davita spent $4.3 million on lobbying

Davita spent $4.3 million on lobbying

March 19, 2008: 04:28 PM EST

WASHINGTON (AP) - Davita Inc. (NYSE:DVA) , which operates kidney dialysis centers, spent $4.3 million lobbying the federal government last year.

The El Segundo, Calif.-based company spent $2.8 million on lobbying in the second half of the year, according to a lobbying form posted online Feb. 14.

DaVita lobbied on bills that control how much the government pays dialysis centers.

DaVita has a huge stake in policies that affect dialysis reimbursement, because the government pays for the care of nearly all of the 390,000 people in the U.S. on dialysis.

Some members of Congress are working to change the system that the Centers for Medicare & Medicaid uses to reimburse dialysis centers for buying the anemia treatment Epogen from Amgen Inc. (NASDAQ:AMGN) Anemia, a blood disorder which causes fatigue, is a common side effect of kidney disease.

Investigations by government watchdog groups have shown the government pays clinics about 5 percent more than what it actually costs them for the drugs.

The lawmakers argue the current system encourages centers to use more of the drugs than necessary, running up government costs and putting patients at risk of dangerous complications.

Medicare officials are working on a new payment system that would remove the incentive to overuse the drugs.

Under a federal law enacted in 1995, lobbyists are required to disclose activities that could influence members of the executive and legislative branches.

http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-23898734.htm