Vermont will collect $81,708 in restitution and other recoveries as its share of a national $16.5 million settlement with Omnicare Inc., the nation’s largest provider of pharmaceuticals and pharmacy services to nursing homes. The civil settlement resolves allegations that Omnicare offered improper financial incentives to skilled nursing facilities (“SNFs”), in the form of commercially unreasonable contracts to supply pharmaceutical drugs, in return for the SNFs continued selection of Omnicare to supply drugs to Medicaid recipients.
The whistleblower, a former nursing home owner, and the federal government alleged this incentive arrangement violated the Federal Anti-Kickback Statute and analogous state statutes, which are intended to ensure that the selection of health care providers and suppliers is not compromised by improper financial incentives but is instead based on the best interests of the patient.
Source: Vermont AG. 9.8.2014