{"id":16281,"date":"2015-10-07T10:55:06","date_gmt":"2015-10-07T17:55:06","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=16281"},"modified":"2015-10-07T10:55:06","modified_gmt":"2015-10-07T17:55:06","slug":"feds-nations-largest-pharmacy-to-pay-9-2-million-fine-to-settle-kickback-allegations","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=16281","title":{"rendered":"Feds: Nation’s Largest Pharmacy to Pay $9.2 Million Fine to Settle Kickback Allegations"},"content":{"rendered":"

VIRGINIA<\/strong><\/h2>\n
\n

\"U.S.<\/a><\/span>The nation\u2019s second-largest nursing home pharmacy,\u00a0<\/span>PharMerica Corp<\/strong>., has agreed to pay $9.25 million to resolve allega<\/span>tions that it received kickbacks from pharmaceutical manufacturer <\/span>Abbott Laboratories<\/strong>, authorities announced today.<\/span><\/p>\n

The kickbacks were paid for promoting the\u00a0\u00a0prescription drug Depakote<\/strong> for nursing home patients.<\/span><\/p>\n

\u00a0 PharMerica is headquartered in Louisville, Kentucky, officials said.<\/span><\/p>\n

\u201cElderly nursing home residents suffering from dementia have little control over the medications they receive and depend on the unbiased judgment of healthcare professionals for their daily care,\u201d said Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department\u2019s Civil Division.<\/strong>\u00a0 <\/span><\/p>\n

Adding \u201cKickbacks to entities making drug recommendations compromise their independence and undermine their role in protecting nursing home residents from the use of unnecessary drugs.\u201d<\/span><\/p><\/blockquote>\n

The lawsuits were filed under the qui tam, or whistleblower<\/strong>, provisions of the False Claims Act<\/strong>, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery, authorities said.\u00a0<\/span><\/p>\n

The whistleblower in this case will receive $1 million as her share of the settlement.<\/span><\/p>\n

Officials said nursing homes rely on consultant pharmacists, such as those employed by PharMerica,<\/strong> to review their residents\u2019 medical charts at least monthly and make recommendations to their physicians about what drugs should be prescribed for those residents.\u00a0 <\/span><\/p>\n

The settlement announced today resolves allegations that in exchange for recommending that physicians prescribe Depakote, an anti-epileptic drug manufactured by Abbott, to nursing home residents, PharMerica solicited and received kickbacks from Abbott.\u00a0 <\/span><\/p>\n

The government alleges that the kickbacks were disguised as rebates, educational grants and other financial support, according to authorities.<\/span><\/p>\n

In May 2012, officials said the United States, numerous states and Abbott entered into a $1.5 billion global civil and criminal resolution that, among other things, resolved Abbott\u2019s liability under the False Claims Act for alleged kickbacks to nursing home pharmacies, including PharMerica.\u00a0 <\/span><\/p>\n

The settlement announced today resolves PharMerica\u2019s role in that alleged kickback scheme.<\/span><\/p>\n

\u201cThe settlement announced\u00a0 today should serve as a stark reminder to pharmaceutical companies and those with whom they do business that the Department of Justice and its investigative agencies will continue to monitor their activities,\u201d said U.S. Attorney Anthony P. Giorno of the Western District of Virginia.<\/strong> \u00a0\u201cWhen those activities involve improprieties such as the payment of kickbacks, we will not hesitate to hold them accountable. \u00a0We owe nothing less in fulfilling our duty to ensure that nursing home residents are provided with the appropriate drugs based upon their needs rather than the business interests of the companies providing the drugs.\u201d<\/span><\/p>\n

About $7.6 million of the settlement will go to the United States, while $2.5 million has been allocated to cover Medicaid program claims by states that elect to participate in the settlement, officials said.<\/span><\/p>\n

The Medicaid program is jointly funded by the federal and state governments.<\/span><\/p>\n

\u201cNursing home pharmacies accepting kickbacks from drug makers in exchange for prescribing certain prescription drugs puts vulnerable residents at risk for receiving unnecessary medications, corrupts medical decision making, and inflates health care costs,\u201d said Special Agent in Charge Nick DiGiulio of the U.S. Department of Health and Human Services\u2019 Office of Inspector General.<\/strong>\u00a0\u201cOur agency will continue to root out such corrosive practices from our health care system.\u201d<\/span><\/p>\n

The settlement partially resolves allegations in two lawsuits filed in federal court in \u00a0Virginia by Richard Spetter<\/strong> and Meredith McCoyd,<\/strong> former Abbott employees.\u00a0 <\/span><\/p>\n

McCoyd will receive $1\u00a0million from the federal share of the settlement amount.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

VIRGINIA The nation\u2019s second-largest nursing home pharmacy,\u00a0PharMerica Corp., has agreed to pay $9.25 million to resolve allegations that it received kickbacks from pharmaceutical manufacturer Abbott Laboratories, authorities announced today. 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