State wins millions against dialysis company

Local News

The state is on it’s way to getting millions of dollars from a dialysis company.

Attorney General Doug Chin says Liberty Dialysis was gaming the system.

Wednesday, his office announced that the state had won back more than $7 million in overpayments to Liberty Dialysis.

Chin says between 2006 and 2010 the company was paid too much for treatments given to medicaid patients.

The overpayments were discovered in a billing error. Chin says once the state found out, liberty refused to pay back the money.

“In other words what we are claiming is that liberty dialysis was gaming the system,” said Chin. “In other words they were aware that there was a billing error, but they continued to charge the state and that resulted in overpayment of over $7 million.”

The state is seeking triple damages for the over payments, which Chin says would amount to more than $21 million, plus between $5,000 to $10,000 every time a false claim is submitted. “The important thing about this lawsuit is that it could result in tens of millions of damages and that could be going back to the state,” said Chin.

“We intend to appeal the State hearing officer’s decision,” Fresenius Medical Care North America spokesperson Jon Stone said. “and strongly disagree with the assertions contained in the Attorney General’s lawsuit.”

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