Omnicare Inc. to Settle Allegations of Causing Submission of False Claims to Wisconsin Medicaid

Aug 29 2014
Omnicare Inc. to Settle Allegations of Causing Submission of False Claims to Wisconsin Medicaid


MADISON — Attorney General J.B. Van Hollen announced that Wisconsin has joined with other states and the federal government to settle allegations that Omnicare Inc., the nation’s largest provider of pharmaceuticals and pharmacy services to nursing homes, allegedly offered improper financial incentives to skilled nursing facilities in return for their continued selection of Omnicare to supply drugs to Medicaid recipients.  Omnicare is headquartered in Cincinnati, Ohio.  The total value of the settlement is $16.48 million.  As part of the settlement, Wisconsin will receive $250,158.82 in restitution and other recoveries.


The settlement resolves allegations that Omnicare entered 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 for nursing home residents covered by Wisconsin Medicaid program.  The government alleges that this conduct violated the Federal Anti-Kickback Statute and resulted in the submission of false claims to the Wisconsin Medicaid program.


The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs.  The Anti-Kickback Statute is intended to ensure that the selection of health care providers and suppliers is not compromised by improper financial incentives and is instead based on the best interests of the patient.



The settlement resulted from a whistleblower lawsuit filed by a former nursing home owner in the United States District Court for the District of New Jersey.