Omnicare to Pay $124M to Settle False Claims, Anti-Kickback Allegations

Cincinnati, Ohio-based Omnicare — the nation's largest provider of pharmaceuticals and pharmacy services to nursing homes — has agreed to pay the government $124.24 million to settle allegations that it violated the False Claims Act and the Anti-Kickback Statute according to the Department of Justice.

The government alleged the company offered improper financial incentives to skilled nursing facilities in return for their continued selection of Omnicare to supply drugs to elderly Medicare and Medicaid beneficiaries, according to a news release.

The government also alleged the improper relationship resulted in Omnicare and the facilities submitting fraudulent claims for reimbursement to Medicare and Medicaid.

The settlement resolves two lawsuits filed under the qui tam, or whistle-blower, provision of the False Claims Act, according to the release.

"Schemes such as this one undermine the healthcare system and take advantage of elderly nursing home residents," said Stuart F. Delery, Attorney General for the Justice Department's Civil Division, in the release.

Of the $124.24 million to be paid by Omnicare, $8.24 million will be distributed to states that jointly funded the Medicaid programs impacted by the improper and fraudulent conduct.

More Articles on the False Claims Act:

AHA Urges Supreme Court to Bar Excessive False Claims Act Penalties 
Government Intervenes in False Claims Act Lawsuit Against IPC The Hospitalist 

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