DaVita falls on reaching agreement with US DOJ to resolve illegal kickback allegations

Davita

18/07/2024 20:44

** Shares of healthcare company DaVita  DVA.N  fall 2.8% to
$135.93 in afternoon trade 
    ** Company says it has agreed to pay over $34 mln to the
U.S. Department of Justice (DOJ) for resolving allegations of
paying illegal kickbacks to nephrologists and vascular access
physicians to induce referral of patients to its dialysis
centers  
    ** DOJ alleges DaVita paid "improper remuneration" to a
large nephrology practice to induce referrals to its dialysis
clinics
     ** Anti-kickback laws in the U.S. prohibit anyone from
offering or paying, directly or indirectly, to induce referrals
of patients or of items or services covered by Medicare,
Medicaid and other federally-funded programs
    ** The U.S. Federal Trade Commission launched an
investigation earlier this year into DaVita and Fresenius
Medical Care  FMEG.DE  over allegations that the companies have
been illegally thwarting smaller competitors, Politico reported
last week 
    ** Including session moves, DaVita stock up 31.2% YTD 

 (Reporting by Sneha S K in Bengaluru)
 ((Sneha.SK@thomsonreuters.com;))