Bullock: Drug Companies Reimburse State $50,000 for Alleged Kickback Schemes
Omnicare Inc. of Covington, Kentucky, is the nation’s largest nursing home pharmacy. IVAX Pharmaceuticals of Weston, Florida, manufactures, sells and markets generic drugs. The settlements are based on five separate lawsuits related to state and federal false claims statutes, alleging that Omnicare and others engaged in several unlawful kickback schemes that included the following:
•Omnicare paid $50 million to certain nursing home chains in exchange for 15-year contracts with each company to refer nursing home patients to Omnicare for the patients’ drug purchases.
•Omnicare provided pharmacy consultants to long-term care facilities throughout the country at below market rates in exchange for the facilities’ agreement to use the company’s pharmacy services exclusively for their patients.
•Omnicare solicited and received kickback payments in exchange for the company’s agreement to convince physicians to prescribe the antipsychotic drug, Risperdal as an initial drug or in place of competitors’ antipsychotic drugs. Risperdal is an antipsychotic drug manufactured by Johnson & Johnson.
|Settlement Amount:||Total Medicaid Settlement (State/Federal)||$142,864.76|
|State Share of Medicaid Restitution||$22,663.87|
|State Share of Additional Recoveries||$13,316.65|
|Total State Settlement Amount||$36,825.34|
|Settlement Amount:||Total Medicaid Settlement (State/Federal)||$52,993.93|
|State Share of Medicaid Restitution||$9,754.81|
|State Share of Additional Recoveries||$3,170.60|
|Total State Settlement Amount||$13,221.66|