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
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