Revised CMS ruling favorable for dialysis providers, says Wells Fargo Wells Fargo said the Centers for Medicare & Medicaid Services eliminated the impact of the rebase in its revised rules from for its proposed accountable care demonstration project for dialysis providers, which is a positive for the providers. The firm keeps an Outperform rating on DaVita HealthCare (DVA) and a Market Perform rating on Fresenius Medical (FMS).
DaVita discloses it received subpoena from Inspector General In a regulatory filing, DaVita disclosed that the company recently received a subpoena from the Office of Inspector General, U.S. Department of Health and Human Services. This civil subpoena covers the period from January 1, 2008 through the present and seeks production of a wide range of documents relating to the company’s and its subsidiaries’ provision of services to Medicare Advantage plans and Medicare Advantage organizations and related patient diagnosis coding and risk adjustment submissions and payments. DaVita believes that the request is part of a broader industry investigation into Medicare Advantage patient diagnosis coding and risk adjustment practices and potential overpayments by the government. In the event that the company were to incur liability related to this matter, the company would pursue an indemnification claim against the sellers secured by the escrow. We can make no assurances that the indemnification and escrow would cover the full amount of our potential losses related to this matter. The company is cooperating with the government and will gather and produce the requested information.