American Kidney Fund Steered Financial Aid To Patients Of Its Two Biggest Corporate Donors, Lawsuit Claims
The American Kidney Fund is supposed to help patients pay for health insurance premiums and other costs for treatment based solely on a patient’s financial need, and not favor companies that donate to it. But a new whistleblower lawsuit claims the charity created a so-called blocked list of dialysis clinics whose patients would not get financial assistance while it made sure patients at clinics operated by DaVita and Fresenius would.
The New York Times:
Top Kidney Charity Directed Aid To Patients At DaVita And Fresenius Clinics, Lawsuit Claims
One of the nation’s largest public charities steered financial aid to patients of its two biggest corporate donors — the dialysis chains DaVita and Fresenius — while denying help to people who used smaller, unrelated clinics, in violation of anti-kickback laws, according to a federal whistle-blower lawsuit unsealed this week in Boston. The charity, the American Kidney Fund, helps patients who need dialysis by paying their health insurance premiums and other costs for treatment. But under a longstanding federal agreement intended to prevent illegal kickbacks, the charity is supposed to provide help based solely on a patient’s financial need, and not favor companies that donate to it. (Abelson and Thomas, 8/2)
Modern Healthcare:
Whistleblower Alleges DaVita, Fresenius Involved In Kickback Scheme
According to the whistleblower complaint, which was first unsealed on Thursday after the U.S. Justice Department declined to intervene, most of the American Kidney Fund's money goes toward helping patients pay for dialysis treatment through grants. DaVita and Fresenius are among the organization's biggest donors. When the American Kidney Fund became pressed for donations, it began restricting grants to only patients whose dialysis providers contributed to the fund, according to the lawsuit, which was initially brought in 2016 by a former AKF employee of 12 years. DaVita and Fresenius pressured the AKF to do so, according to the complaint, which was first reported by Bloomberg Law. (Livingston, 8/2)
Bloomberg:
DaVita, Fresenius Broke Kickback Rules, Whistleblower Says
“The Department of Justice has looked at this matter and decided not to pursue any action against DaVita,” company spokeswoman Courtney Culpepper said in an email. “Unfortunately, some health insurers seeking to avoid high-cost patients may continue to try to challenge charitable premium assistance. We, in turn, will continue to defend our patients’ right to access such assistance.” (Tozzi, 8/2)
