Fresenius to defend itself from FCA suit following whistleblower allegations -

A former employee alleges Fresenius engaged in arrangements with hospitals and nephrologists to ensure patient referrals to its dialysis facilities. The suit contends the company violated the False Claims Act (FCA) and Anti-Kickback Statute (AKS) in its dealings. Specifically, Fresenius is said to have used loss-leaders - underpricing certain goods or services - to induce hospitals to refer patients to its facilities. It would then recoup that money by inflating the costs of other goods or services. With nephrologists, the suit claims the company had MDAs with specialists that provided compensation at higher-than-market rates and included language prohibiting doctors from using dialysis centers other than those affiliated with Fresenius as first providers.