Whistleblower in Omnicare case to receive over $17.2 million

A former Omnicare pharmacist who revealed information to Uncle Same about Omnicare Inc.’s alleged kickbacks to nursing homes, will receive over $17.2 million as her share of the $124 million which Omnicare has agreed to pay to the government.The anti-kickback statute makes it a felony to induce or  reward patient referrals with items or services payable through federal healthcare programs such as Medicare and Medicaid.

The settlement resolves allegations that Omnicare submitted false claims by entering into below-cost contracts to supply prescription medication and other pharmaceutical drugs to skilled nursing facilities and their resident patients to induce the facilities to select Omnicare as their pharmacy provider. The facilities were participating providers under agreements with Medicare and Medicaid. In addition to the facilities’ own claims for reimbursement from Medicare for short-term rehabilitation treatment rendered to patients, Omnicare submitted additional claims for reimbursement to Medicare and Medicaid for drugs Omnicare supplied.

Jeffrey Newman represents whistleblowers. He did not represent the whistleblowers in the Omnicare case.