Fresenius Medical Care AG & Co. KGAA announced that the United States government's litigation against Renal Care Group, Inc. in connection with 'Method II' Medicare reimbursement has successfully concluded with the Department of Justice's filing of a stipulation of dismissal. The end of this litigation also concludes the broader investigation begun by the government in St. Louis, Missouri in 2005. The Department of Justice investigated many areas of the company's operations under subpoenas issued in St. Louis beginning in April 2005. In July 2007, after two years of investigation, the Department initiated litigation on a single topic of the investigation: that Renal Care Group, which the company had acquired by merger, violated the False Claims Act by maintaining a 'Method II' subsidiary. In 2011, a federal trial court in Tennessee entered judgment against the company for $83 million. In October 2012, however, the United States Court of Appeals reversed and vacated the judgment. The Court of Appeals further ruled against the Department of Justice on several significant issues of law raised by the case, agreeing with the company that it was not unlawful for Renal Care Group to maintain a subsidiary that billed under Method II. The Court of Appeals then remanded the case to the trial court to allow the Department to proceed to trial on remaining, unresolved issues. By its filing, the Department confirmed that it would not pursue the remand and would litigate no further.

A federal appeals court has overturned an $82.6 million judgment against a former Nashville-based dialysis company. Renal Care Group, which was acquired by Fresenius Medical Care Holdings Inc. of Germany in 2005, was the focal point of one of the area's large Medicare billing cases. The company was accused of improperly billing the Medicare program for home dialysis supplies and equipment between 1999 and 2005. Renal Care, then one of the country's large diabetic supply companies, was ordered to pay $82.6 million in damages. In 2010, Fresenius appealed that decision, denying any wrongdoing and reiterating that the company had discussed the structure of its operations with government officials.

The United States Attorney's Office announced that a federal judge has entered a judgment of $82,642,592 in favor of the United States in a "whisteblower" lawsuit originally filed in the federal district court in St. Louis in 2005, and then transferred to the federal district court in Nashville, Tennessee. The lawsuit claimed that Renal Care Group, Inc., Renal Care Group Supply Company and Fresenius Medical Care Holdings Inc. recklessly disregarded federal law when billing the Medicare program for home dialysis supplies and equipment during 1999-2005. The court's orders in this case discuss the concerns of multiple Renal Care Group employees who complained about the operation and Medicare billing activity of the Renal Care Group Supply Company, including one regional manager. The court further noted that Renal Care Group failed to heed the advice of the company's lawyers when operating the supply company and also discussed an internal audit of the supply company that found that 100% of the company's files were missing information that Medicare required for billing.