CINCINNATI — Cincinnati based Omnicare Inc., has settled for a reported $124.2 million to settle allegations of offering facilities illegal kickbacks yet does not admit liability.
Cincinnati.com reported that the payment will allow Omnicare Inc., to avoid charges of offering improper incentives to nursing facilities in exchange for a continuation Omnicare service use.
Steven M. Dettelback, United States Attorney for the Northern District Ohio released the following statement in response to the announced settlement:
“Nursing homes should select their pharmacy provider based on the best quality, service and cost to the residents, not based on improper discounts to the nursing facility.”
Omnicare allegedly entered below-cost supplier contracts for pharmaceutical needs to entice facilities to continue using their services. However, both Omnicare and involved facilities submitted claims for Medicaid and Medicare reimbursement outside of the signed contract.
To compensate for the money wrongfully taken from Medicaid and Medicare budgets, $8.24 million of the settlement will go back into various state budgets that support Medicaid programs.
This isn’t the only instance of illegal kickback allegations that have been brought against Omnicare Inc.
In February 2015, Omnicare agreed to a $4 million settlement in response to allegations in South Carolina that they engaged in illegal kickbacks similar to those brought against them in Ohio.
Additionally, in 2013 Omnicare paid $20 million in Chicago to settle another whistleblower lawsuit in which allegations once again cited illegal kickbacks.
Even as far back as 2009 Omnicare agreed to pay the government $98 million to resolve allegations of Johnson & Johnson officials paying illegal kickbacks to Omnicare to promote the prescription of Risperdal.
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