Attorney General's News Release

December 2, 2004

Missouri to share in $15 million agreement from company that improperly billed for Medicaid services

St. Louis, Mo. — Attorney General Jay Nixon announced today that Missouri has reached an agreement in principle to receive a share of a $15 million settlement from a health care company that engaged in improper billing practices for dialysis services to patients on Medicaid in 44 states.

The agreement was concurrent with Gambro Healthcare Inc. — a company with head offices in Nashville and Denver — settling a $310 million civil claim with the federal government. In addition, Gambro Healthcare's sister company, Gambro Supply Corp., entered a guilty plea in federal court in St. Louis to a felony charge of making a false statement to the Medicare program. Gambro Supply Corp. will pay a $25 million criminal fine.

Under the agreement in principle, an additional $15 million will be shared by Missouri and 43 other states with claims under Medicaid, a health care program for low-income individuals that is administered on the state level.

Nixon's office was part of the negotiating team that obtained the $15 million agreement. Over the next several weeks, a determination will be made regarding how much of that agreement each state will receive.

"Missouri's Medicaid program was put in place as a safety net for those individuals who find themselves without medical care. For a company to steal from that program for their own financial gain is tantamount to stealing from the church poor box," Nixon said. "I am pleased that several states were able to join forces to resolve this issue and return these funds for the purpose for which they were intended."

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818