Keyword: American Renal Associates
Shares of dialysis companies rose sharply after California Gov. Jerry Brown vetoed a bill that would have had a major impact on their bottom line.
The legislation, which would cap profits on dialysis clinics affiliated with charities, has been highly contested by the industry.
The settlement resolves allegations ARA diverted dialysis patients to commercial plans with a premium assistance scheme.
Three dialysis providers have received subpoenas about their dealings with premium assistance programs, which have been under increasing scrutiny.
In response to concerns that some providers may be pushing patients toward higher-reimbursement health plans, CMS is tightening its regulations.
From Kaiser Health News: Health insurers the Obama administration to prohibit all premium assistance programs that are funded directly or indirectly by hospitals and other providers.