Fresenius Medical enters into settlement agreement with U.S. government

Fresenius Medical Care on Tuesday announced that it resolved a legal dispute with the U.S. government, for accounts receivable in legal dispute, and entered into a final and legally binding settlement agreement, whereby the company will receive a payment from the U.S. government. Fresenius Medical Care had filed a complaint against the United States in 2019. This complaint sought to recover monies owed to the company by the U. S. Department of Defense under the Tricare program, for services on or before January 11, 2023. The now executed settlement agreement resolves the dispute underlying the complaint and concludes the litigation. As a consequence of the settlement agreement, both revenue and operating income will be positively impacted. Fresenius Medical Care therefore expects a net positive impact on operating income of approx. EUR 175 million in the fourth quarter 2023. The company had previously expected in fiscal year 2023 operating income to grow by a low-single-digit percentage rate, compared to previous year. As a consequence of the settlement agreement, Fresenius Medical Care today raises its earnings outlook. The company now expects operating income to grow by 12%-14% in fiscal year 2023, compared to previous year. All other elements of the 2023 outlook, as published, remain unchanged. In line with its disciplined financial policy, Fresenius Medical Care intends to use the agreed settlement payment to reduce its net financial debt and therefore deleverage the balance sheet.