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Omnicare has agreed to pay $98 million and drug manufacturer, IVAX Pharmaceuticals will pay $14 million to resolve Department of Justice (DOJ) allegations that Omnicare engaged in kickback schemes with several parties. Approximately $68.5 million of the proceeds will go to the United States, while $43.5 million has been allocated to pay Medicaid program claims by participating states. Both parties must enter into separate corporate integrity agreements with the Office of Inspector General of the Department of Health and Human Services. The DOJ alleged that Omnicare solicited or paid a variety of kickbacks. Specific allegations include Omnicare paying kickbacks to nursing homes by providing consultant pharmacist services at rates below the company's cost and below the fair market value in order to induce the facilities to refer their patients to Omnicare for pharmacy services, as well as Omnicare soliciting from IVAX $8 million in kickbacks in exchange for Omnicare's agreement to purchase $40 million in drugs from IVAX. Additional DOJ allegations involved conduct with drug manufacturer Johnson and Johnson regarding solicitation and receipt of kickbacks in exchange for agreeing to recommend that physicians prescribe Risperdal to nursing home patients. The alleged kickbacks included payments disguised as data purchase fees, educational grants, and fees to attend Omnicare meetings. |
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