Dive Brief:
- DaVita HealthCare Partners has set aside almost $400 million to settle charges that it paid kickbacks to nephrologists to guarantee dialysis referrals.
- DaVita had originally set aside $300 million for a settlement, but recently added another $97 million to address the costs of the settlement.
- The settlement may be affecting earnings for the company, which reported a drop in third quarter earnings, from $144.7 million on $1.8 billion a year ago to $136.6 million on $2.1 billion in revenue this year.
Dive Insight:
DaVita certainly has its hands full, with civil and criminal charges to contend with and the recent acquisition of Los Angeles-based medical group HealthCare Partners to integrate. That being said, the dialysis giant shows every sign of being able to roll into the future successfully once it puts its long-standing legal troubles to bed. But if the proceedings drag on, which they are likely to do, it could lead to further financial problems. The sooner DaVita can stop litigating and focus back solely on its dialysis business, the likelier it is that it will emerge unscathed.