Washington state accuses largest dialysis providers DaVita, Fresenius of suppressing competition
FMS•Washington state sued DaVita and Fresenius, alleging their noncompete agreements for dialysis-center medical directors suppress competition and limit patient options. The state seeks to void the agreements and civil fines of up to $7,500 per violation.
1. Washington files lawsuit
Washington state filed an antitrust lawsuit accusing DaVita and Fresenius Medical Care of using noncompete agreements for nephrologists who serve as medical directors at dialysis centers. The state says the agreements make it harder for competing centers to hire the medical directors required by Medicare regulations, reducing treatment options and incentives to improve care.
2. Companies and penalties
DaVita said the allegations present a distorted picture of its medical director agreements and that it would defend the lawfulness of its arrangements with independent physician practices. Fresenius did not immediately respond to a request for comment. The complaint seeks to void noncompete agreements for current and former medical directors and civil fines of up to $7,500 per violation.
3. Investigation and state presence
The Federal Trade Commission began investigating the alleged use of medical-director noncompetes in April 2024, seeking information from both companies, which have said they are cooperating. Washington Attorney General Nick Brown said DaVita operates 51 dialysis centers in the state and Fresenius operates 29; some areas have only one provider.
