August 10, 2005 - The U.S. Attorney's office in St. Louis, which announced a $350 million settlement with Gambro Healthcare US last December, deepened its investigation into the dialysis industry by serving Renal Care Group with a subpoena this week. Article from the St. Louis Post-Dispatch.

The areas covered by the subpoena include Renal Care Group's supply company, pharmaceutical and other services the company provides to patients, the company's relationships with pharmaceutical companies, its relationships with physicians, medical director compensation and joint ventures with physicians. AP article via Yahoo.

On December 2, 2004, Gambro Healthcare US announced it had reached a final agreement with the U.S. Department of Justice to resolve the investigation stemming from June 2001. Gambro set aside $355 million to cover payment of the settlement amount. Press release from the Gambro.

Authorities called the settlement by Gambro Healthcare U.S. among the largest in the Justice Department's history, resolving an investigation that followed a 2001 lawsuit by whistleblower Dr. Steven Bander, a former Gambro medical officer. Story from AP via Boston.com.

As part of the settlement, Gambro Healthcare US has entered into a 5-year Corporate Integrity Agreement (63-page pdf file).

In a separate but related case, two managers at CoxHealth in Springfield, Missouri began to question the legality of their organization's Method II billing practice in light of the decision from the U.S. District Court for the Eastern District of Missouri v. Gambro Healthcare.

On Wednesday, June 8, two former CoxHealth employees, a dialysis administrative director and clinic director, filed a lawsuit alleging they were fired after they talked to federal investigators about possible Medicare Method II billing fraud and suspect reimbursement practices for nephrologists.

The lawsuit is available on-line as a 15-page pdf file.