Memphis home dialysis clinic to pay $3M in anti-kickback settlement

By Published: January 29, 2019 8:57 PM CT

An East Memphis home dialysis facility has agreed to pay more than $3 million to settle claims it violated federal and state anti-kickback laws.

WellBound of Memphis’ $3.2 million settlement with the United States and state of Tennessee resolves allegations the clinic made false claims to Medicare, the Tricare health care program and TennCare between 2016 and 2018 after paying doctors financial incentives for patient referrals. Under federal and state law, Medicare, Tricare and TennCare won’t pay for services associated with referrals in violation of the Anti-Kickback Statute.

Michael Dunavant, U.S. attorney for the Western District of Tennessee, announced the settlement Monday, saying the allegations were first raised in a lawsuit against WellBound and others under provisions of the False Claims Act.

WellBound, a division of San Jose, California-based dialysis chain Satellite Healthcare, provides training and care for home dialysis patients. The Memphis clinic, 780 Truse Parkway, opened in 2016 through a partnership with University Clinical Health.

The anti-kickback investigation was conducted by the U.S. Department of Health and Human Services Office of the Inspector General, the Tennessee Bureau of Investigation and the Tennessee attorney general’s office.

Derrick L. Jackson, special agent in charge of HHS’ Office of Inspector General in Atlanta, said in a release the settlement “sends a strong message that Medicare and Medicaid patients are not for sale.”

In addition to the WellBound facility on Truse, Satellite Healthcare operates four Memphis dialysis clinics.

<strong>D. Michael Dunavant</strong>

D. Michael Dunavant


WellBound of Memphis Satellite Healthcare
Kate Crawford

Kate Crawford

Associate editor Kate Crawford is a native Memphian and third-generation University of Memphis alumna.

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