05:20 PM EDT, 07/18/2024 (MT Newswires) -- (Updates with comments from DaVita's spokesperson in the fifth and sixth paragraph)

DaVita (DVA) agreed to pay about $34.5 million to settle allegations of paying kickbacks to induce referrals, the US Attorney's Office for the District of Colorado said Thursday.

The company allegedly paid kickbacks to a competitor to induce referrals for its former unit DaVita Rx to serve as a prescription fulfillment provider. DaVita is also said to have acquired certain European dialysis clinics at inflated prices in exchange for prescription referrals, according to the press release.

The US Attorney's Office further alleges that DaVita provided management services to physician-owned centers and paid improper remuneration to induce referrals to its dialysis clinics.

DaVita Kidney Care's former chief operating officer Dennis Kogod will receive about $6.4 million from the proceeds of the settlement for his role as a whistleblower.

"We have worked closely with the government for the past seven years to investigate these allegations, which involve transactions that date back more than a decade and largely involve business units we no longer operate and people who haven't been with the company for years," DaVita's spokesperson told MT Newswires in an email.

"While we deny any liability, we agreed to this resolution to close this chapter and move forward.," the spokesperson added.

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