Philadelphia pharmacy owners to pay $4.6M in billing fraud case

The former and current owners of a Philadelphia pharmacy agreed to pay more than $4.6 million to settle allegations of submitting false claims to Medicare and Medicaid for nonexistent prescriptions. 

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In a lawsuit, the pharmacy’s former owner, Pennmark Pharmacy Inc., and current owner, Jai Shri Krishna LLC, were accused of fraudulently billing for high-cost drugs while dispensing cheaper solutions between 2018 and 2020, according to a Jan. 23 Justice Department news release.

To resolve the claims, Jai Shri Krishna and pharmacist Antim Patel agreed to pay nearly $4 million and Pennmark Pharmacy Inc. will pay about $700,000. Jai Shri Krishna and Mr. Patel also entered into an integrity agreement, which requires compliance obligations and to contract with an independent reviewer for third-party audits.

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