Texas Dialysis Centers Settle Fraud Claims for $2 Million

Six SNG dialysis centers agree to pay the U.S. government to resolve allegations of submitting false relief fund claims.

Updated on Oct. 27, 2026 in Healthcare

Bold flat-color editorial illustration of a solitary red archway against a cream background, representing systemic regulatory oversight. — Six Texas-based SNG dialysis centers agreed to a $2 million settlement with the U.S. government to resolve claims of false COVID-19 relief fund submissions. AI Illustration. Upload story photo >

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Six SNG dialysis centers in Texas have agreed to pay $2 million to settle allegations that they submitted false claims for Provider Relief Fund payments. The United States government alleged that the facilities received funds they were not entitled to obtain after misrepresenting their revenue status.

Why it matters

The settlement addresses the misuse of federal funds intended to support healthcare providers during the pandemic. By ensuring accountability for Provider Relief Fund disbursements, the government aims to protect the integrity of the CARES Act financial support system.

The SNG Dialysis Centers agreed to a $2 million settlement to resolve allegations regarding improper Provider Relief Fund reports. These facilities had reportedly ceased operations or sold their businesses when they submitted claims asserting zero revenue.

The players

SNG Dialysis Centers

These are a group of Texas-based medical facilities that provided dialysis care before ceasing operations or changing ownership.

Sankar Nephrology Group

This organization is a provider of nephrology services that has agreed to provide a financial guaranty for the settlement payment.

Health Resources and Services Administration

This is an agency of the U.S. Department of Health and Human Services that oversees the distribution of Provider Relief Fund payments.

The details

The United States alleged that the dialysis centers submitted reports to the Health Resources and Services Administration claiming zero revenue despite having already closed or sold their operations. Sankar Nephrology Group has agreed to provide a financial guaranty to ensure the settlement payment is fulfilled.

March 29, 2020: Congress enacted the CARES Act to provide pandemic relief funding.
October 27, 2026: The settlement agreement was formally announced.

Market Landscape

This settlement aligns with ongoing federal efforts to audit and recover payments issued under the CARES Act Provider Relief Fund. It highlights the government's rigorous oversight of healthcare entities that received pandemic-era financial assistance.

Patients and the public are not directly affected by this financial settlement, which serves as a corrective measure for federal grant reporting. The agreement ensures that public funds are recovered and that entities are held accountable for their financial disclosures.

The takeaway

Healthcare providers receiving federal emergency assistance must maintain accurate and up-to-date reporting on their operational status. Accurate financial disclosures are required to ensure that relief funding is distributed only to businesses currently providing active services.