VA to pay DaVita $538M for allegedly underpaying for dialysis services

The federal government has agreed to pay Denver-based DaVita $538 million to resolve allegations that the Department of Veterans Affairs underpaid DaVita for dialysis services provided from 2005 through 2011.

The settlement resolves a six-year-old lawsuit filed by DaVita. DaVita claimed the rates the VA was paying DaVita for dialysis services fell below those outlined by VA regulations. After 2011, the VA continued to contract with DaVita and now reimburses the company at rates equivalent to Medicare, according to the Denver Business Journal.

"Complex litigation and resolutions of this nature involving government and regulatory agencies often take years to resolve, as was the case here," DaVita said in a statement to the Denver Business Journal. "We appreciate our partnership with the Veterans Administration and are proud to provide the best care in the kidney community to the men and women of the U.S. Armed Services who have served our country."

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