Denver-based dialysis operator is target of federal probe

DaVita Inc., which is the biggest operator of dialysis clinics in the nation, announced that it is the subject of a government probe into payments for drugs it used in the N.Y. Medicaid program.

Reuters: DaVita Says U.S. Govt Probes Payment For Infusion Drugs
DaVita Inc, the biggest U.S. operator of dialysis clinics, said it is the subject of a government probe into payments for infusion drugs covered by the Medicaid health program for the poor in New York. DaVita said it believed the inquiry was civil in nature and did not have details about the time period covered (Dey, 10/25).

Denver Post: DaVita Stock Struggles As Firm May Be Subject Of U.S. Attorney's Inquiry
Denver-based DaVita Inc. is the subject of an inquiry by a U.S. attorney's office in New York -; the latest in a line of shots taking a toll on the nation's largest kidney-dialysis company. Tuesday's announcement follows news that a Denver-based federal grand jury is conducting a criminal investigation into DaVita's relationships with doctors. In addition, a judge in Texas advanced a federal whistle-blower lawsuit alleging DaVita overused the anemia drug Epogen to drive up revenues. DaVita stock, meanwhile, has plummeted 24 percent since its 52-week high in July (Brown, Booth and Osher, 10/26).

In other news, Alcon is also facing a government probe:

Reuters: Novartis Unit Alcon Faces U.S. Health Fraud Probe
Novartis's recently acquired eyecare business Alcon is facing a U.S. government investigation into alleged health care fraud, the Swiss drugmaker said on Tuesday. Alcon received a subpoena from the U.S. Department of Health and Human Services on September 23 requesting the production of documents relating to marketing practices, as well as the remuneration of health care providers (Hirschler, 10/25).