Omnicare to pay $8M to settle false claims allegations in 28 states

Omnicare, a pharmacy services provider owned by Woonsocket, R.I.-based CVS Health, has agreed to pay 28 states a combined $8 million to resolve allegations it violated the False Claims Act, according to the Department of Justice.

The government alleged Omnicare implemented an automated label verification system at certain locations that used less specific drug codes than the National Drug Code — a 10-digit number that identifies the labeler, product and trade package size. The use of less specific drug codes resulted in Omnicare submitting claims to Medicare and Medicaid for generic drugs that were not actually dispensed to beneficiaries, according to the DOJ.

The government also alleged Omnicare dispensed drugs with labels that displayed the incorrect manufacturer or National Drug Code.

The allegations against Omnicare were originally brought in a lawsuit filed under the qui tam, or whistle-blower, provisions of the False Claims Act.

More articles on healthcare industry lawsuits:

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