RCG dialysis company pilfered $19.4 million

A federal judge in Tennessee has found that a dialysis company bilked the federal government out of $19.4 million. U.S. District Judge William J. Haynes Jr. issued the order against Renal Care Group, Renal Care Group Supply Co. and Fresenius Medical Care Holdings Inc. The order concluded that the companies ran a single operation and falsely claimed to be separate in a scheme that increased their Medicare billings by 30%. The judge held that the company was unjustly enriched, and order it to refund the $19.4 million to the government. The judge did not consider the government’s other claims, and did not consider the provisions in the FCA requiring a civil penalty of at least $5,000 per false claim, and treble damages. According to Business Week, a groups of whistleblowers originated this case in St. Louis. Either side can appeal between now and May 21.