Originally published October 3 2005
Gambro Healthcare pays settlement to state Medicaid program
by Mike Adams, the Health Ranger, NaturalNews Editor
Sued on charges on over-billing, Gambro, a provider of dialysis supplies, agreed to pay the state of Massachusetts Medicaid program a settlement worth $37.5 million.
A company that provides supplies and equipment to patients undergoing kidney dialysis at home has agreed to pay $537,915 to the state Medicaid program to settle allegations they used a subsidiary to improperly bill the state, Attorney General Thomas Reilly said Wednesday.
As part of the settlement, reached with attorneys general from 40 states and the District of Columbia, Gambro Healthcare agreed to pay a total of $37.5 million in damages and penalties.
Gambro Healthcare is a supplier of dialysis equipment and products used by Medicaid recipients.
Gambro spokeswoman Anne Bonelli said the company had anticipated the settlement and put money aside for it.
"We're just really glad that this matter is behind us and we can go back to focusing on our patients," she said.
Gambro violated the law by creating a "shell company," Gambro Supply Corp., to bill Medicaid programs at the higher reimbursement rate permitted for clinics rather than the lower rate it should have billed for home dialysis, Reilly said.
Today's settlement also resolves allegations that Gambro caused federal and state health care programs to pay for unnecessary tests and services and paid kickbacks in exchange for patient referrals to Gambro clinics.
In 2004, Gambro entered into an agreement with the federal government in which the company settled similar allegations regarding bills submitted to the Medicare program.
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