National Medical Settles Fraud Case With U.S.

A national chain of kidney dialysis centers has settled a fraud case with the Justice Department for $486 million, the largest health-care settlement in the agency’s history. Federal officials said National Medical Care Inc. used Medicare and other government health insurance programs to pay for hundreds of needless tests for patients suffering from kidney disease, a condition that frequently requires patients to receive dialysis. The Lexington, Mass.-based company will pay a criminal fine of $101 million for wide-ranging misconduct and $385 million in civil fines, penalties and restitution for fraud. Company whistle-blowers will collect $65.8 million, officials said. National Medical Care is owned by Fresenius Medicare Care, a German company that is the world’s largest provider of dialysis products and services. John Markus, a spokesman for Fresenius, said--as federal officials did--that National Medical Care’s fraudulent practices stopped soon after Fresenius acquired the company.