December 2, 2004  Gambro Healthcare

Gambro Healthcare will pay $350 Million Dollars to settle claims asserted in a qui tam lawsuit filed by the company’s former Chief Medical Officer, Steven J. Blander. The allegations of the case were that: (a) instead of billing Medicare directly, Gambro billed Medicare through a shell company, which enabled it to obtain a higher rate of reimbursement from medicare;
(b) it engaged in a practice known as “hard coding” which resulted in Medicare paying for medications and services which were not medically necessary; and (c) that it hired and paid physicians based upon the number and volume of anticipated patient referrals to Gambro clinics, a practice which allegedly violated the Medicare Anti-Kickback Act.

Mr. Blander will receive a share of the $350 Million Dollar settlement, for having filed the
qui tam case.

See U.S. Dept of Justice Press Release 12/2/04

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