Atlanta-based Mariner Heath Care Inc. and SavaSeniorCare Administrative Services LLC, along with their principals, Leonard Grunstein, Murray Forman and Rubin Schron, will pay the United States and several states $14 million to settle allegations that the defendants solicited $50 million in kickback payments from Omnicare, the largest pharmacy in the nation which specializes in dispensing drugs to nursing home patients.

The United States alleged that the parties conspired to have Omnicare pay Mariner and Sava $50 million in return for the right to continue providing the nursing homes with pharmacy services.  The parties allegedly tried to mask the kickback as a payment for acquiring a small Mariner business unit that in actuality was worth much less than the stated amount. 

In addition to a monetary settlement, Mariner has agreed to enter into a corporate integrity agreement with the Office of Inspector General of the Department of Health and Human Services through which Mariner will work to detect and prevent similar matters.

This settlement resolves a whistleblower action filed under the qui tam provisions of the False Claims Act. 

Click here to read the full article, “Two Atlanta-Based Nursing Home Chains and Their Principals Pay $14 Million to Settle False Claims Act Case”.