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Whistleblower Client Requests Sanctions Against Fresenius Medical Care


Fresenius Medical Care (FMC) is the world’s largest provider of products and services for individuals undergoing dialysis due to chronic kidney failure.  Chester Saldivar, a former employee, started to notice something wrong.

As the former chief equipment technician of Fresenius’ Los Angeles- and Nevada-area clinics, Mr. Saldivar discovered that the company was potentially overbilling Medicare tens of millions of dollars as part of a process known as “overfill.”

Drug overfill is the term used to describe the FDA-mandated extra product found in drug vials, which is required to allow for part of the drug lost to evaporation or when some of the solution sticks to the bottom or side of the vial and can’t be collected by a syringe.

The Medicare Act restricts how much drug manufacturers can charge for overfill “expenses incurred.” Mr. Saldivar believed Fresenius was not following these rules.  When he reported this discrepancy, his employer placed him on unpaid suspension, pending an investigation. Soon after, and he was terminated from his position at Fresenius.

This is when Mr. Saldivar knew he needed to seek legal assistance and turned to Ashcraft & Gerel.

A&G’s qui tam team has significant experience investigating, negotiating and litigating cases involving healthcare and Medicare fraud.   It is an area of law we are extremely committed to—not only in seeking justice for taxpayers and the federal government, but in protecting the individuals who risk everything to expose fraud.

Working with Mr. Saldivar, Ashcraft & Gerel filed a Motion for Sanctions against Fresenius and is calling for the dialysis provider to be sanctioned. Fresenius certified in their discovery response that it had produced all documents showing their understanding of Average Sales Price for separately  billable ESRD drugs was calculated. However, independent research done my Mr. Saldivar’s A&G counsel showed that Fresenius had in fact failed to produce such documents. For these discovery abuses under Federal Rule of Civil Procedure 26(g)(1), Mr. Saldivar and Ashcraft & Gerel have respectfully requested that monetary sanctions be imposed on Fresenius for this failure.

To read the complete motion, click here.

To learn more about our firm’s experience representing whistleblowers, click here.