Omnicare Inc., the nation’s largest provider of pharmaceuticals and pharmacy services to nursing homes, will pay $124.24 million for allegedly providing improper discounts to nursing facilities to induce them to select Omnicare as their pharmacy provider. The settlement resolves allegations that Omnicare submitted false claims by entering into below-cost contracts to supply its drugs to nursing homes in return for their continued use of Omnicare drugs to treat elderly Medicare and Medicaid beneficiaries. In addition to the facilities’ reimbursement claims for treatment rendered to Medicaid patients, Omnicare also submitted its own claims for reimbursement to Medicare and Medicaid. Of the $124.24 million that Omnicare will pay, $8.24 million will go to states affected by Omnicare’s conduct.  The settlement with Omnicare stems from two whistleblower lawsuits. The first whistleblower, Donald Gale, is a former Omnicare employee and will receive $17.24 million.

Read the entire press release, “Nation’s Largest Nursing Home Pharmacy Company to Pay $124 Million to Settle Allegations Involving False Billings to Federal Health Care Programs”