Pharma Fraud
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February 12, 2019
Michael Frey of Ft. Myers, Florida, a physician specializing in pain management, was sentenced to 18 months in prison for his role in an illegal kickback scheme. Frey was a co-owner of Advanced Pain Management Specialists, P.A., and received kickbacks from A&G Spinal Solutions, LLC (which made checks payable to his wife) for a share of its profits from patient referrals; from a compound pharmacy provider; and as "speaker fees" from Insys Therapeutics, a pain medication manufacturer. Frey previously agreed to pay $2.8 million in civil settlement of claims under the False Claims Act. USAO MD FLCatch of the Week – Justice Department Sues Tennessee Pharmacies and Pharmacists Illegally Dispensing Opioids
Posted 02/11/19
February 6, 2019
Abbott Labs has agreed to pay a total of $25 million to settle allegations of paying kickbacks to healthcare professionals in exchange for promotion of its drug, and inappropriately marketing its drug, TriCor, for cardiovascular events not approved by the FDA. The case was initiated by the State of North Carolina and joined by California, Illinois, Nevada, Maryland, Michigan, and Texas, as well as the federal government. NC AGFebruary 4, 2019
Compounding pharmacy Pentec Health, Inc., which sells a drug Proplete for nutrition support for patients with end stage renal disease, has agreed to pay $17 million to settle claims under the False Claims Act. Pentec was alleged to bill federal healthcare programs for product wasted during the compounding of Proplete, and for Proplete that was not medically necessary or was not actually received by patients, routinely waiving patient copays and deductibles to induce the prescription of the drug. Pentec also entered into a corporate integrity agreement and will be excluded from participation on federal healthcare programs. The case was initiated by whistleblower Jean Brasher, a former employee of Pentec, who will receive an undisclosed share of the settlement. USAO EDPACatch of the Week – Walgreens Pays Record $273 Million To Settle Three FCA Suits
Posted 01/25/19
January 22, 2019
Walgreens Co. will pay the U.S. and the State of Wisconsin $3.5 million to settle a case under the False Claims Act alleging that the retail pharmacy routinely dispensed stimulant medications to Wisconsin Medicaid beneficiaries without first verifying that the prescribing physician ordered the medication for medically appropriate treatment, such as treatment for attention deficit disorder. The case was initiated by unidentified whistleblowers, who will receive a share of the settlement to be determined. USAO EDWIJanuary 22, 2019
Walgreens Boots Alliance, Inc. will pay $60 million to settle a False Claims Act case brought by a whistleblower alleging that the retail pharmacy chain knowingly overcharged Medicaid when it charged the healthcare program more than "usual and customary price" for medications that participants in Walgreens "Prescriptions Savings Club" received at a lower price. Of the settlement, approximately $32 million will be paid to the U.S. and $28 million to the affected states. Whistleblower Marc D. Baker will receive a share of the total settlement, to be determined at a later date. USAO SDNYJanuary 22, 2019
Walgreens Boots Alliance, Inc. will pay $209.2 million to settle a False Claims Act case brought by two whistleblowers alleging that the retail pharmacy chain knowingly dispensed insulin pens to patients who did not need them, and billed Medicare, Medicaid, and other government insurance programs for those unnecessary items. As part of the settlement, Walgreens admitted that it prevented pharmacists from dispensing fewer than five insulin pens at a time and altered records regarding dispensing information and days-of-supply so that patients received more insulin pens than they actually needed. $168 million of the settlement will be paid to the U.S., and approximately $41.2 million to state governments. The whistleblowers, Adam Rahimi and S. Christopher Schulte, will receive a share of the total settlement, to be determined at a later date. USAO SDNY. See also, NY, OHTop Ten Healthcare Recoveries of 2018
Posted 01/15/19
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