Dialysis services firms are under pressure, after federal health care officials launched an investigation into complaints some providers may be steering patients into Obamacare plans, in order to obtain higher reimbursement fees.
Shares of dialysis DaVita Healthcare fell more than 4 percent, Fresenius Medical Care fell nearly 4 percent, while American Renal Associates shares plunged as much as 18 percent, well below its April IPO price of $22. ARA shares later recovered some losses and ended the day down more than 10 percent.
Regulators from the Centers for Medicare and Medicaid Services issued a request for information seeking public comment into the prevalence of the practice late Thursday, after health insurers raised concerns about the issue.
CMS issued a warning letter to Medicare-enrolled dialysis firms saying that agency is considering changes to enrollment provisions that now allow some charitable groups to pay for Obamacare plan premiums, and potential penalties for those found to be abusing the system.