September 21, 2005
CURRAN RECOVERS $698,000 FOR MARYLAND
Attorney General J. Joseph Curran, Jr. today announced that Maryland
has recovered $698,393.98 as part of a 40-state $37.5 million
settlement with Gambro Healthcare Inc.
The agreement with Gambro resolves allegations that the company
used a subsidiary company, Gambro Supply Corp., to improperly bill
Medicaid for providing supplies and equipment to patients undergoing
dialysis at home. Dialysis assists in removing toxins from the
blood when a patient’s kidneys are unable to do so on their
own. One form of dialysis, peritoneal dialysis, can be done by
the patient at home after the patient has had sufficient training.
By using their subsidiary, Gambro billed Medicaid at a higher reimbursement
rate than what was allowed under federal regulations. As a result,
the state Medicaid programs paid too much for the dialysis services.
The settlement also covered allegations that Gambro caused federal
and state healthcare programs to pay for unnecessary tests and
services and that Gambro paid kickbacks to physicians based on
patient referrals made to a Gambro clinic.
This case is another example of the continuing efforts of state
Attorneys General and their Medicaid Fraud Control Units to obtain
substantial recoveries of Medicaid funds from companies that try
to cheat Medicaid on a national scale. Companies like Gambro should
understand that it will cost them dearly in the long run," said
Attorney General Curran.
Similar agreements have been finalized in 39 other states and the
District of Columbia. The $37.5 million Medicaid recovery represents
damages and penalties. The settlement period covers January 1,
1991 through September 30, 2004.
Last year, the federal government and Gambro entered into a settlement
agreement in which Gambro paid more than $308 million to the federal
government to settle civil liabilities from the improper payments
made to Gambro Supply Corp. Gambro Supply Corp. also was fined
$25 million in federal court in St. Louis in 2004 when the corporation
pleaded guilty to a charge of health care fraud related to the
Finally, as part of the settlement, Gambro has entered into a Corporate
Integrity Agreement with the United States Department of Health
and Human Services’ Inspector General. The Corporate Integrity
Agreement will require strict scrutiny of Gambro’s billing
practices for the next five years.