Pharmaceutical Company Settles Allegations Involving Improper Financial Incentives for $124 Million

By Peter DePaolis

Cincinnati-based Omnicare Inc. will pay $124 million in fines to settle allegations the nursing home pharmacy giant made false billings to federal health programs and offered improper discounts to skilled-nursing facilities.

Omnicare allegedly offered contracts to supply prescription medication and other pharmaceuticals to Medicare and Medicaid aligned skilled-nursing facilities well below cost. This would in turn induce the nursing homes to select Omnicare as their pharmacy provider.
An Omnicare spokesman suggested that they agreed to settle the matter rather than endure continued litigation. The company insists the settlement is not an admission of liability and of course, continues to deny that it did anything illegal.

About eight million dollars’ worth of the settlement is earmarked for states that were directly affected by the tainted programs.

The settlement also resolves a serious allegation made by a whistleblower ahead of the government’s case. The whistleblower, an Ohio pharmacist and former Omnicare employee from 1993 until 2010,will receive the largest portion of the overall settlement: $17.24 million.

Bribery Involving Nursing Homes Is Legally Intolerable and Ethically Reprehensible

Our elderly family members deserve the highest level of care and respect from their nursing facilities. Seniors should never be treated as second-class citizens or mere numbers in a ledger; Omnicare’s alleged actions are appalling.

If you suspect a loved one has been a victim of nursing home neglect or abuse, contact a Maryland, Washington, D.C. and Virginia injury attorney today at (202) 659-5500, so we can assist you in pursuing your claim. We understand what you are going through and want to hear your story. Feel free to comment below or you can visit our Facebook page to tell us more.

Koonz’s Did You Know: According to the National Center on Elder Abuse (NCEA), on average, only 1 in 14 cases of elder abuse is reported to authorities.

Koonz, McKenney, Johnson & DePaolis L.L.P.

Maryland, Washington, D.C. and Virginia Injury Attorneys


About the Author
Peter DePaolis joined the firm in 1980 and has since represented a large number of individuals involved in automobile collisions, truck accidents, bus crashes, defective products, and medical malpractice cases. A significant portion of Mr. DePaolis’ practice is devoted to working on behalf of people suffering from asbestosis, mesothelioma, and other asbestos-related cancers. He has led his firm’s fight against the asbestos industry and has recovered over $30 million in damages for asbestos victims and their families.