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Drug Company Uses Drugs to Prevent Dementia

Last year, Eli Lilly, which markets the drug Zyprexa, paid a $1.4 billion fine and pled guilty to a misdemeanor for promoting its drug to the elderly with dementia. The pill had never been approved for that use. However, many nursing homes use the drugs in order to chemically restrain patients. Chemical restraints have become commonplace in nursing homes since physical restraints are illegal. Other pharmacies have been subject of litigation as well. Omincare, a pharmacy that provides drugs to nursing homes, agreed to pay $98 million to settle charges of soliciting or paying kickbacks. One such kickback was their recommendation of Johnson & Johnson’s Risperdal antipsychotic to nursing homes. Illegal conduct like this can lead to patients being prescribed medications that they do not need. This in turn raises health care costs. To understand more about the drug kick-backs, please click the link.