Just days before trial was set to begin in the Northern District of Ohio, Omnicare has agreed to pay $120 million to settle allegations that the pharmacy offered kickbacks to nursing homes. According to the allegations, Omnicare offered nursing homes discounts for their Medicare Part A patients in exchange for the more lucrative business of other residents. Nursing homes must pay for the prescriptions of Medicare Part A patients out of the flat fee received for those patients.

The settlement must still be approved by the Department of Justice, which declined to intervene in the case.

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