Omnicare has been in the news for two separate cases recently, one involving a whistleblower suit, and another involving Abbott Laboratories. The case outcomes were mixed. This article gives an overview of both cases, as well as potential implications for compliance officers to pay attention to.
Omnicare, the nation’s largest provider of pharmacy services to long-term care facilities, recently has been in the unwanted Government spotlight in two separate cases that produced mixed results.
In the first case, the Department of Justice (“DOJ”) announced a $28 million settlement with the company to resolve allegations that the company solicited and received kickbacks from pharmaceutical manufacturer Abbott Laboratories in exchange for promoting Depakote for nursing home patients.
In the second case, the Fifth Circuit Court of Appeals, a mere eleven days later, affirmed a summary judgment decision for the company. The Court of Appeals found that Omnicare’s settlement negotiation and debt collection practices involving its skilled nursing facility (“SNF”) clients were not intended to induce referrals in violation of the Federal False Claims Act (“FCA”).
Read Full Article in the December 2016 Issue of Life Science Compliance Update