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DOJ Enforcement Spotlight -- Novartis Settles Whistleblower Kickback Case for $390M

Posted  11/23/15
By the C|C Whistleblower Lawyer Team The Department of Justice continues its recent streak of False Claims Act wins with its $390 million settlement Friday with Novartis Pharmaceuticals Corp. resolving charges the pharmaceutical giant gave kickbacks to specialty pharmacies in return for recommending two of its drugs, Exjade and Myfortic.  Of the $370 million, roughly $287 million will go to the federal government...

A Legally-Compliant Practice: Necessary but Insufficient for Good Medicine?

Posted  11/16/15
By Tim McCormack and Molly Knobler (published on SCCE’s Compliance and Ethics blog) Front page headlines denouncing “bad medicine” typically only hit when a physician is indicted for fraud or a major provider settles a multi-million dollar case for unnecessary services or defective goods.  But two recent reports indicate that being in compliance with the law may be insufficient for truly “good...

There's No Such Thing as a Free BBQ: Kickbacks Cost Physicians Too

Posted  11/11/15
By Tim McCormack and Molly Knobler (published on the Huffington Post blog) On October 29th, pharma giant Warner Chilcott pled guilty to a felony healthcare fraud charge, agreeing to pay $125 million to settle allegations that it had paid illegal kickbacks to doctors and engaged in other illegal marketing behavior to sell its drugs Actonel®, Asacol®, Atelvia®, Doryx®, Enablex®, Estrace,® and Loestrin®. ...

DOJ Catch Of The Week -- Warner Chilcott

Posted  10/30/15
By the C|C Whistleblower Lawyer Team This week's Department of Justice "Catch of the Week" goes to Warner Chilcott US Sales LLC, a subsidiary of pharmaceutical manufacturer Warner Chilcott PLC.  Yesterday, the company agreed to plead guilty to a felony charge of health care fraud as part of a global settlement in which Warner Chilcott agreed to pay $125 million to resolve its criminal and civil liability arising...

DOJ Scores Big With Two Whistleblower False Claims Act Wins

Posted  10/23/15
By the C|C Whistleblower Lawyer Team It was a good week for the Department of Justice in reigning in corporate fraud.  Not only did it secure more than $700 million in fines and penalties from Crédit Agricole for violations of the International Emergency Economic Powers and Trading With the Enemy Acts.  See DOJ Catch of the Week.  It also pulled in two additional eight and nine-figure settlements from two...

DOJ Catch of the Week — PharMerica Corp.

Posted  10/9/15
By the C|C Whistleblower Lawyer Team This week's Department of Justice "Catch of the Week" goes to Kentucky-based PharMerica Corp.  On Wednesday, the nation’s second-largest nursing home pharmacy agreed to pay $9.25 million to resolve allegations it violated the False Claims Act by soliciting and receiving kickbacks from pharmaceutical manufacturer Abbott Laboratories in exchange for promoting the anti-epileptic...

DOJ’s Adventist Settlement Puts the Power of Whistleblowers in “Stark” Relief

Posted  09/23/15
By Tim McCormack and Molly Knobler (published on SCCE’s Compliance and Ethics Blog) There is no denying that certain aspects of the Physician Self-Referral Law, more commonly known as the “Stark Law,” are complicated. The Stark Law and its corresponding regulatory scheme include a web of technical terms, safe harbors, and interpretive guidance.   Is this complexity a necessary byproduct of the...

Stark Law Enforcement Trend: Hospital and Individual Physician Settle Allegations of Stark Law Violations and Illegal Upcoding

Posted  09/18/15
By Tim McCormack and Molly Knobler (published on SCCE’s Compliance and Ethics Blog) The Department of Justice’s (“DOJ”) recent string of victories against hospitals that have (allegedly) paid illegal inducements to employed physicians continues.  On September 4, 2015, DOJ settled two False Claims Act (“FCA”) suits with Columbus Regional Healthcare System (“Columbus”) and Dr. Andrew Pippas. ...

Have We Reached the Final Round In the Government's Tuomey Kickback Case?

Posted  07/10/15
The United States won another round in its now almost eight year battle to hold South Carolina-based Tuomey Healthcare System liable for paying doctors illegal kickbacks.  The litigation has been long and procedurally complex, but at bottom, the Government has alleged, and the jury has found, that Tuomey gave a group of doctors unreasonably lucrative employment arrangements to get them to send their patients to...

Doctors Be Warned: DOJ Steps Up Enforcement of Anti-Kickback Law Against Individual Medical Professionals

Posted  06/29/15
The Department of Justice has recovered millions of dollars from hospitals, nursing homes, pharmaceutical companies and other medical providers through civil and criminal enforcement of the Anti-Kickback Law.  But the agency has begun paying increased attention to the doctors, nurses and administrative professionals on the receiving end of these bribes. The Anti-Kickback Law (42 U.S.C. § 1320a-7b) makes it...
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