DaVita HealthCare Partners' set-aside to settle charges it paid kickbacks to kidney doctors to guarantee a steady stream of dialysis patients is now nearly $400 million, according to the company's latest filing with the Securities and Exchange Commission.
A federal grand jury in Denver, where the company is based, has been investigating whether joint ventures set up between DaVita and nephrologist-owned clinics violated the nation's anti-kickback laws. A criminal investigation is also underway.
The company said it was setting aside another $97 million on top of the $300 million earmarked for a settlement last spring. “There can be no certainty about the timing or likelihood of a definitive resolution or the scope of any potential restrictions or impact on future operations that may be agreed upon in connection with the settlement,” according to the statement.
DaVita fought the allegations for years, according to news reports in the Denver Post. DaVita CEO Kent Thiry told analysts last spring that the company is hoping to settle all the civil and criminal charges stemming from the ongoing investigation.
The settlement set asides appear to be affecting earnings. The dialysis giant, which acquired Los Angeles-based HealthCare Partners and is struggling to integrate the huge physician practice into its operations, reported a decline in third-quarter earnings to $136.6 million on $2.1 billion in revenue compared to $144.7 million on $1.8 billion in revenue a year ago.
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