CNN: DaVita Accused of Massive Healthcare Fraud

In a blistering report on CNN's "Situation Room w/ Wolf Blitzer" show on Wednesday night, healthcare company DaVita (NYSE: DVA) was accused of defrauding the federal government to the tune of $800 million. The report focused on two whistle blowers who are suing the company. DaVita operates dialysis service centers around the country and most of its revenue comes from Medicaid and Medicare. According to the whistle blowers, the company's policy has been to throw away enormous amounts of perfectly good medicine in order to over charge the government through Medicaid and Medicare. The company allegedly would use only a portion of a vial of medication in dispensing doses and then throw away the rest. The remaining dose that needed to be administered would come from additional vials. Essentially, this allowed DaVita to charge for multiple vials of medication when far fewer were ...