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Gambro Healthcare to pay more than $350 million in Medicare fraud case

Compliance Monitor, December 8, 2004

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In one of the largest settlements reached by the Department of Justice, renal dialysis clinic owner Gambro Healthcare will pay more than $350 million in criminal fines and civil penalties to settle allegations of healthcare fraud in the Medicare, Medicaid, and TRICARE programs, according to the U.S. Attorney in the eastern district of Missouri.

Gambro Supply Corp. -- a subsidiary of Gambro Healthcare that the U.S. attorney's office described as a "sham durable medical equipment company" -- agreed to plead guilty to criminal felony charges; admit to execution of a healthcare fraud scheme; pay a $25 million fine; and be permanently excluded from the Medicare program.

Gambro Healthcare paid about $310 million to resolve civil liabilities stemming from alleged kickbacks paid to physicians, false statements made to procure payment for unnecessary tests and services, and payments made to Gambro Supply.

In addition, the settlement requires Gambro to pay $15 million for conduct involving various state Medicaid programs.

Gambro also entered into a Corporate Integrity Agreement with the Office of the Inspector General.

To read the U.S. Attorney's release, click here.

To read Gambro's CIA, click here.

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