Beshear Secures more than $5 Million for Kentucky from Medicaid Fraud Settlement with Nation’s Largest Kidney Dialysis Provider

Lawsuit alleged company failed to warn dialysis clinics about potential increase of bicarbonate levels

FRANKFORT, KY. (Feb. 21, 2019) – Attorney General Andy Beshear is returning more than $5 million to the Kentucky Medicaid program from a settlement with Fresenius Medical Care Holdings Inc. over allegations of Medicaid fraud.

The settlement resolves claims by Beshear that the Massachusetts-based company violated Medicaid guidelines by failing to warn Kentucky dialysis clinics and doctors from 2003-2012 that its kidney dialysis product, GranuFlo, could result in dangerously increased bicarbonate levels.

Beshear said clinics and doctors needed to know the risks of increased bicarbonate levels from GranuFlo in order to properly treat patients and to not put them at harm.

Beshear said Fresenius did the right thing by settling with Kentucky over its Medicaid fraud allegations, and by working with the FDA to properly label GranuFlo for clinics and doctors.

“These allegations against Fresenius are very serious, and were not taken lightly by my office,” Beshear said. “I do commend the company for working with us on a settlement that will give millions to the state’s Medicaid program that helps provide health care to hundreds of thousands of adults and children in Kentucky.”

Fresenius is the largest provider of kidney dialysis and renal care products, treatment and services in the nation, with more than 2,200 dialysis clinics nationwide, including more than 50 clinics in Kentucky.

Fresenius also sold GranuFlo to independent clinics in Kentucky.

The AG’s Office of Medicaid Fraud and Abuse oversaw the lawsuit and settlement with Fresenius.

Since taking office, efforts by Beshear’s Office of Medicaid Fraud and Abuse through civil settlements and criminal restitution have resulted in more than $88 million in obligations to the state and federal Medicaid program, Medicare, Tricare, commercial payers and other entities.

Beshear’s settlement with Fresenius does not preclude individual actions for personal injuries.