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Omnicare settles $120M kickback suit

October 24, 2013
by Pamela Tabar, Editor-in-Chief
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Long-term care pharmacy services provider Omnicare, Inc., Cincinnati, has reached an agreement to pay $120 million to end a lawsuit that alleged the company had traded drug discounts for skilled nursing referrals.

The suit, filed by Omnicare former employee Donald Gale, centered on Medicare Part A medications, which federal prosecutors claimed were being sold to nursing homes for discounted prices in exchange for pharmacy services referrals for new skilled nursing customers. Omnicare was accused of having such kickback relationships with at least 22 skilled nursing facilities, according to the court documents.

As the whistleblower in the suit, Gale is eligible to receive 25 to 30 percent of the amount recovered, notes Reuters.