DaVita, the second largest provider of dialysis services in the United States, has agreed to a framework for “a global resolution with government officials for both the 2010 and the 2011 U.S. Attorney Physician Relationship Investigations,” the company shared in its most recent financial report.
The company announced that the settlement will include the payment of approximately $389 million, an amount previously announced and put into reserve.
“We have agreed to unwind a limited subset of joint ventures that were created through partial divestiture to nephrologists, and agreed not to enter into this type of partial divestiture joint venture with nephrologists in the future,” the statement read.
DaVita HealthCare Partners said it would pay to settle criminal and civil antikickback investigations. Its joint ventures with kidney doctors involved 28 dialysis clinics.
The Denver Post reported that Kent Thiry, DaVita’s chief executive officer, said the exact settlement is being finalized.
The Post noted that Garry Menzel, DaVita’s chief financial officer, said the company “most likely” will buy out or sell 11 joint ventures it reached with kidney doctors at “fair market value.”
Overall, DaVita had a good year in 2013 and showed an improvement over year 2012 income earnings. Income for the quarter ended December 31, 2013, and the adjusted income for the year ended December 31, 2013, from continuing operations attributable to DaVita HealthCare Partners, Inc., were $212.3 million and $817.6 million, respectively.
Adjusted income from continuing operations attributable to DaVita HealthCare Partners, Inc., for the quarter and year ended December 31, 2012, was $173.8 million and $612.6 million, and that adjusted income excluded the loss contingency reserve and a different adjustment.
