HealthLawProf Blog

Editor: Katharine Van Tassel
Akron Univ. School of Law

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Sunday, December 5, 2004

Massive DME Fraud Case Settles

BNA's Health Care Daily Report Executive Briefing reports:

Gambro Healthcare US Inc., one of the nation's largest providers of kidney-dialysis services, will pay over $350 million to resolve criminal and civil charges that it defrauded the Medicare and Medicaid programs, U.S. Attorney for the Eastern District of Missouri James G. Martin announced Dec. 2 (United States v. Gambro Healthcare U.S. Inc., E.D. Mo., No. 4:01-CV-00553-DDN, settlement 12/02/04; United States v. Gambro Supply Corp., E.D. Mo., case number unavailable, plea entered 12/1/04). As part of the settlement, a Gambro subsidiary, Gambro Supply Corp., pleaded guilty to a one-count criminal information charging it with carrying out a health care scheme, and agreed to pay a $25 million fine. Gambro Supply will be permanently barred from participation in the Medicare program. A Department of Justice statement described Gambro Supply as "a sham durable medical equipment company." As part of the overall settlement, DOJ said, Gambro Healthcare will pay $310.5 million to resolve civil liabilities stemming from alleged kickbacks paid to doctors, false statements made to procure payment for unnecessary tests and services, and payments to Gambro Supply.

Details of the elaborate scheme are available in the Department of Justice's news release on the plea bargain.  Gambro's press release is here; the company's previous releases concerning this care are here.

The BNA service is available by subscription here.

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