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$82 Million Awarded in Medicare Fraud Whistleblower Lawsuit

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A 2005 “whistleblower” lawsuit, originally filed in St. Louis federal district court then transferred to the federal court in Nashville, alleging that Renal Care Group (RCG), Renal Care Group Supply Company (RCGSC) and Fresenius Medical Care Holding Inc. (FMC), showed reckless disregard for federal law in how they billed Medicare for home dialysis supplies and equipment from 1999 to 2005, has been decided.

The lawsuit claimed that while RCG and FMC provided renal dialysis to people with the life-threatening condition end-stage renal disease, which is generally covered by Medicare, the companies set-up the sham company RCGSC then required patients to move to that company, so they could bill Medicare for reimbursement of supplies and equipment.

Employees of RCG complained about the activities of the company including one regional manager who said “I do not wish to go to jail,” and that RCG “was not in the best interests of patients”, after the company began moving patients to RCGSC. The court also said that an internal audit of the company found that all of the information Medicare requires for billing was missing.

The U.S. Attorney’s Office announced the lawsuit had been resolved and the judgment in favor of the US in the amount of $82,642,592.

 disclaimer: This article: $82 Million Awarded in Medicare Fraud Whistleblower Lawsuit was posted on Wednesday, June 1st, 2011 at 8:12 pm at and is filed under Fraud Lawsuits.

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