Dialysis giants DaVita and Fresenius Medical sued by employee benefits plan
May 12 (Reuters) - A union health benefits fund has sued top U.S. dialysis service providers DaVita (DVA.N), opens new tab and Fresenius Medical Care (FMEG.DE), opens new tab in federal court in Colorado for allegedly conspiring to artificially inflate treatment costs by billions of dollars.
The proposed nationwide class action, opens new tab was filed on Friday by Pennsylvania-based United Food and Commercial Workers Local 1776, which provides benefits for thousands of members across the United States.
DaVita and Fresenius, the two largest dialysis providers in the United States, illegally carved up areas in the country to avoid competition, the lawsuit said.
The plaintiffs also said the companies since at least 2021 have engaged in parallel price increases that are higher than competitors and 'not adequately explained by market forces.'
DaVita in a statement on Monday said "the allegations in this case are baseless, and we will defend against it vigorously."
Fresenius declined to comment. Attorneys for United Food and Commercial Workers Local 1776 did not immediately respond to requests for comment.
German healthcare group Fresenius spun off Fresenius Medical Care in 2023 and is not a defendant.
In the United States, DaVita and Fresenius earn more than 90% of industry revenue for dialysis services, according to the lawsuit. The complaint said the two companies acquired their dominance through a 'decades-long strategy of acquiring small, independent clinics in uncontested mergers.'
The lawsuit also alleged the two companies have had opportunities to collude on pricing through their partnerships and deals.
United Food and Commercial Workers Local 1776 pays for dialysis services for its members. The lawsuit seeks class status for all purchasers of outpatient dialysis services from DaVita, Fresenius or one of their affiliates.
DaVita is among a group of outpatient medical center operators facing antitrust claims in the federal court in Chicago, Illinois, over employee compensation and mobility.
The plaintiffs in that proposed class action, filed in 2021, have alleged a conspiracy over hiring and recruitment practices for senior employees at ambulatory surgery centers and outpatient medical facilities suppressed pay.
An expert for the plaintiffs has estimated class-wide damages of nearly $870 million in that case. DaVita and the other defendants in that lawsuit have denied any wrongdoing.
The case is United Food and Commercial Workers Local 1776 and Participating Employers Health and Welfare Fund v. DaVita Inc et al, U.S. District Court, District of Colorado, No. 1:25-cv-01478.
For plaintiffs: Stephen Tillery and Andrew Ellis of Korein Tillery, Vincent Briganti of Lowey Dannenberg and Eric Young of Young Law Group
For defendants: No appearance yet
Read more:
US drops antitrust case over healthcare hiring agreements
DaVita loses bid to dismiss class 'no-poach' claims
DaVita and its former CEO acquitted of U.S. antitrust charges
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