Nursing Home Pharmacy to Pay $112 Million to Settle False Claims Act Cases

The nation’s largest nursing home pharmacy, Omnicare, will pay $98 million and drug manufacturer, IVAX will pay $14 million to resolve allegations that Omnicare engaged in kickback schemes with several parties. A portion of the settlement has been allocated to cover Medicaid program claims by participating states. Omnicare is the nation’s largest pharmacy that specializes in providing drugs to nursing home patients. This settlement resolves allegations that the company solicited or paid a variety of kickbacks. The company allegedly solicited and received kickbacks from a pharmaceutical manufacturer in exchange for agreeing to recommend that physicians prescribe a specific drug to nursing home patients. The kickbacks included data purchase fees, educational grants and fees to attend meetings. Additionally, Omnicare regularly paid kickbacks to nursing homes by providing consultant pharmacist services at rates below the company’s cost and below the fair market value of such services in order to induce the homes to refer their patients to Omnicare for pharmacy services. The Assistant Attorney General stated that the company broke the law to take advantage of our nation’s most vulnerable citizens, the elderly and the poor. To read more about the nursing home kickbacks, please click the link.

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