Big Beverly Employer Settles Lawsuit For $32 Million

BEVERLY, MA -- American Renal, a Beverly-based healthcare company that provides dialysis services, settled a lawsuit that accused it of fraud for $32 million. Two years ago, insurer UnitedHealth Group filed a lawsuit that accused American Renal of convincing its patients in Ohio and Florida to switch to insurance plans even though their treatments were covered by Medicare and Medicaid. UnitedHealth, the country's biggest health insurer, said American Renal wanted the $4,000 reimbursement private insurance companies pay for treatments instead of the $300 or so from the government programs.

While American Renal initially said the suit was without merit, the company said in a joint statement with UnitedHealth that they were working on a cooperative relationship. As part of the settlement, the two companies signed a three-year agreement to offer UnitedHealth to American Renal patients.

American Renal employs about 400 people, or 10% of its U.S. workforce, in Beverly. The company settled a shareholder class-action lawsuit that made similar allegations about insurance fraud for $4 million in February.

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Patch file photo.

Dave Copeland can be reached at dave.copeland@patch.com or by calling 617-433-7851. Follow him on Twitter (@CopeWrites) and Facebook (/copewrites).