Pharmaceutical Company Will Pay $21 Million for Overpricing Respiratory Drugs
December 24, 2009 by nick
On December 17, 2009, Bloomberg News reported that Schering-Plough Corp., a drug company, will pay $21.3 million to settle a False Claims Act lawsuit against it. The settlement stems from a whistleblower lawsuit against several drug companies accused of Medicaid fraud.
The suit alleged that Schering deliberately inflated the average wholesale price it reported to California for Albuterol, a treatment for asthma and other breathing problems, as well as other drugs. As a result, California’s Medi-Cal program overpaid millions of dollars in pharmacy reimbursements.
Schlering was recently acquired by Merck & Co. of New Jersey. Merck didn’t admit wrongdoing and said its pricing practices complied with regulations and contracts. The settlement amount was reserved and significantly funded by Schering-Plough prior to its merger with Merck in November, Merck said.
If you are seeing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.
Three HealthEast Hospitals Will Pay $2.28 Million For Fraudulent Policy
June 4, 2009 by casey
On Thursday, May 21, the Department of Justice announced a $2.28 million settlement between three HealthEast Care System hospitals and the United States. It was alleged that the hospitals, all of which are located in the Minneapolis/St. Paul area of Minnesota, performed kyphoplasties on an inpatient basis in order to increase their Medicare billings.
Kyphoplasties, which are minimally-invasive procedures used to treat osteoporosis-evoked spinal fractures, are typically performed on an outpatient basis. “Outpatient” procedures do not require admission to a hospital and can even be performed outside hospital facilities. By performing kyphoplasties on an inpatient basis, patients were unnecessarily admitted to the hospital and closely monitored before, during, and after the procedure.
In this fashion, the hospitals overcharged Medicare thousands of dollars for each kyphoplasty they performed.
“By keeping patients overnight, hospitals could seek greater reimbursement from Medicare and make much larger profits on kyphoplasty,” said Kathleen Mehltretter, Acting U.S. Attorney for the Western District of New York in Buffalo.
The whistleblower suit was brought under the False Claims Act, which permits private citizens to bring lawsuits on behalf of the United States and receive a portion of the proceeds of any settlement or judgment awarded against a defendant. The lawsuit was filed in 2008 in federal district court in Buffalo, N.Y. by Craig Patrick and Charles Bates. Mr. Patrick of Hudson, Wis., is a former reimbursement manager for Kyphon, and Mr. Bates was formerly a regional sales manager for Kyphon in Birmingham, Ala.
If you are witnessing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.
Regency Nursing and Rehabilitation Centers Will Pay $4 Million for Submitting False Claims
June 4, 2009 by casey
The Department of Justice released the settlement of a False Claims Act on Thursday, May 21, involving the Texas-based nursing home chain, Regency Nursing and Rehabilitation Center Inc. The company will pay $4 million to the United States to settle allegations that it submitted false claims to Medicaid and the Texas Medicaid program.
According to the case, Regency sought Medicare and Medicaid reimbursement for services that nursing home residents did not qualify for, were unnecessary, and were unsupported by required certification.
“With the number of Medicare and Medicaid beneficiaries increasing every year, we will take whatever action is necessary to make certain healthcare providers are reimbursed only for legitimate services provided to qualified beneficiaries,” said Tim Johnson, Acting U.S. Attorney for the Southern District of Texas.
If you are witnessing fraud on the government, contact us by calling 800-377-1812 for strictly confidential advice from experienced counsel, with no fee obligation.
Walgreens Settlement
October 16, 2008 by nick
False Claims Act Attorney Group Settles with Nation’s Largest Pharmacy
Along with pharmacists Daniel Bieurance and Neil Thompson, the False Claims Act Attorney Group of Vanderlinden, Christensen, and Wojtalewicz is proud to announce the $9.9 million settlement of a False Claims Medicaid Fraud Case against the giant pharmacy chain Walgreens. Learn more here.
