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A federal grand jury in Denver has issued a two-count indictment accusing DaVita Inc. and its former CEO, Kent Thiry, of conspiring with competing employers not to solicit certain employees. DaVita owns and operates outpatient medical care centers across the country, focusing on dialysis and kidney care. The charges are the result of the Antitrust Division’s ongoing investigation into employee assignment agreements in the healthcare industry. The DaVita Surgical Care Affiliates LLC co-conspirator and its related entity (collectively SCA) were indicted in January, and this case is pending in the North District of Texas.
The indictment alleges that DaVita and Thiry were both involved in two separate plots to suppress competition for the services of certain employees. Chief one accuses DaVita and Thiry of conspiring with SCA to assign high-level employees by agreeing not to solicit the other’s high-level employees from February 2012 until July 2017. Chief two accuses DaVita and Thiry for plotting with another healthcare company from April 2017 until June 2019 to assign employees by agreeing that the other healthcare company would not solicit DaVita employees.
“Those who conspire to deprive workers of free market and mobility opportunities are committing serious crimes which we will prosecute with all the force of the law,” said Acting Deputy Attorney General Richard A. Powers of the ministry’s antitrust division. of Justice. “We are grateful for our partnership with the FBI and our shared commitment to eliminating illegal collusion targeting labor markets. ”
“These accusations show disturbing behavior among executives of health care companies to conspire to limit workers’ opportunities,” said deputy director in charge Steven M. D’Antuono of the FBI’s Washington field office. “The FBI is committed to working with our partners to hold accountable those who engage in labor market collusion to the detriment of their employees.”
DaVita and Thiry are charged with two counts of violating Sherman Law. The defendants are scheduled to appear for the first time on July 20 before US trial judge Kristen L. Mix of the US District Court for the District of Colorado. If convicted, DaVita faces a maximum fine of $ 100 million per count, and Thiry faces a maximum sentence of 10 years in prison and a fine of $ 1 million per count. The maximum fine can be increased to twice the gain from the crime or twice the loss suffered by the victims if either amount is greater than the legal maximum. A federal district court judge will determine any sentence after considering US sentencing guidelines and other statutory factors.
Today’s announcement is the result of an ongoing federal investigation by the Washington Criminal II Section of the Antitrust Division and the Washington Field Office of the FBI.
Anyone with information relating to this investigation should contact the Antitrust Division Complaints Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
An indictment is only an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in court.
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