OHIO – The nation’s largest nursing home pharmacy company must pay 
millions of dollars to settle allegations involving false billings to federal health care programs, officials announced today.
The Cincinnati-based Ominicare Inc. agreed to pay $124.2 million for taking advantage of nursing home residents, officials said.
Of the $124.2 million to be paid by Omnicare, $8.24 million will go to various states which jointly funded the Medicaid programs impacted by Omnicare’s conduct, federal officials said.
Omnicare allegedly offered improper financial incentives to skilled nursing facilities in return for their continued selection of Omnicare to supply drugs to elderly Medicare and Medicaid beneficiaries, officials allege.
“Health care providers who seek to profit from providing illegal financial benefits will be held accountable,” said Assistant Attorney General for the U.S. Justice Department’s Civil Division Stuart F. Delery. “Schemes such as this one undermine the health care system and take advantage of elderly nursing home residents.”
The Anti-Kickback law prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs.
The settlement resolves allegations that Omnicare submitted false claims by entering into below-cost contracts to supply prescription medication and other pharmaceutical drugs to skilled nursing facilities and their resident patients to induce the facilities to select Omnicare as their pharmacy provider.
The facilities were participating providers under agreements with Medicare and Medicaid.
In addition to the facilities’ own claims for reimbursement from Medicare for short-term rehabilitation treatment rendered to patients, officials said.
‘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,” said U.S. Attorney Steven M. Dettelbach
Omnicare submitted additional claims for reimbursement to Medicare and Medicaid for drugs Omnicare supplied.