DaVita HealthCare Partners’ subsidiary DaVita Rx is under investigation for allegations that it presented false claims for payment to the government for prescription medications. DaVita disclosed that it received a Civil Investigative Demand (CID) from the U.S. Attorney’s Office for the Northern District of Texas. The CID covers Jan.1, 2006 through the present.
Chief Financial Officer Jim Hilger said during a Feb. 11 earnings call that DaVita had filed a self disclosure with the Office of Inspector General on Feb. 5, 2016 regarding potential billing and operational issues the company found during an internal compliance review.
Read also: DaVita HCP subpoenaed over Medicare Advantage payments
DaVita HealthCare Partners has received a subpoena from the Office of Inspector General for documents related to patient diagnosis coding and risk adjustment submission and payments to Medicare Advantage plans and organizations. More
“The information requested has some overlap with the items we self disclosed, and we do not know if the US Attorney knew we are already in a process of developing a self disclosure with the OIG,” Hilger said.
In the fourth quarter of 2015, the company recorded an estimated accrual of $23 million for potential damages and liabilities in its DaVita Rx pharmacy business.