U.S. Proceeds with Related Action Against Two Nursing Home Chains and Their Principals

November 20th, 2009 by Qui Tam

The United States Attorney’s Office for the District of Massachusetts announced the settlement of multiple false claims act cases against Omnicare, Inc. of Covington, Kentucky,  for $98 million for soliciting and receiving multiple kickbacks.  The first scheme involved Johnson and Johnson and kickbacks for recommending that physicians prescribe Risperdal, a J&J antipsychotic drug, to nursing home patients.  The US also alleged that Omnicare regularly paid kickbacks to nursing homes by providing them with consultant pharmacist services at rates below Omnicare’s costs and below the fair market value for such services.  The government alleged that Omnicare also solicited kickbacks from IVAX, and IVAX paid $8 million, in exchange for Omnicare’s agreement to purchase $50 million in drugs from IVAX.  The US Attorney’s office settled related claims against IVAX for $14 million.  Finally, the government alleged that Omnicare and several nursing home chains conspired to arrange for Omnicare to pay the chains $50 million in exchange for the right to continue providing pharmacy services to the nursing homes.  As part of the settlements, Omnicare and IVAX agreed to enter into corporate integrity agreements with the OIG for the Department of Health and Human Services. 

More information on the lawsuits can be found here:  http://www.justice.gov/usao/ma/Press%20Office%20-%20Press%20Release%20Files/Nov2009/OmnicarePR.html

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