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Long-Term Care Corp. to Pay $31.5 Million to Settle Lawsuit

Credit: Wikimedia Commons

The Justice Department announced that long-term care corporation PharMerica has settled with the United States for $31.5 million in a lawsuit claiming that they dispensed controlled drugs without a valid prescription and violated the False Claims Act by submitting false claims to Medicare. According to justice.gov:

“Pharmacies put patients at risk when they dispense Schedule II narcotics, which have the highest potential for abuse of any prescription drug, without a valid prescription from a physician,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Department of Justice’s Civil Division.  “Today’s settlement demonstrates our commitment to the fight against the misuse of controlled substances.”

PharMerica is a long-term care pharmacy that dispenses medications to residents of long-term care facilities, including nursing homes and skilled nursing facilities.  Many of the prescriptions filled by PharMerica are for controlled substances listed in Schedule II under the Controlled Substances Act.  Schedule II drugs, such as oxycodone and fentanyl, can cause significant harm if used improperly and have a high potential for abuse.

Read more here: http://www.justice.gov/opa/pr/long-term-care-pharmacy-pay-315-million-settle-lawsuit-alleging-violations-controlled

*Disclaimer: The views and opinions on this blog are those of the author. Nothing contained in this weblog is intended as legal advice. This weblog was created to provide general information, opinions of the author and general musings. Accessing this website is not a consultation for legal advice or services and this weblog does not create an attorney-client relationship.

 

DaVita to Pay $495 Million to Settle Whistleblower Case

(RJ Sangosti, Denver Post file)

(RJ Sangosti, Denver Post file)

This is a very interesting case we wanted to share on the blog. DaVita HealthCare Partners last week agreed to pay up to $495 million to settle a whistleblower lawsuit claiming that the Denver company defrauded Medicare of millions. Though the company settled, it did not admit any wrongdoing.  This is DaVita’s third whistleblower lawsuit settlement in the last three years, with payouts reaching nearly $1 billion.

According to the Denver Post:

The civil suit, filed in Atlanta in 2011, revolves around a claim by Dr. Alon J. Vainer and nurse Daniel D. Barbir, who both worked for DaVita. They noticed that DaVita was throwing out good medicine that it then billed Medicare and Medicaid for, according to the lawsuit.

Vainer and Barbir, who could be paid up to $135 million as part of the settlement, said in court filings that they questioned DaVita about the waste and claimed the company submitted fraudulent claims for reimbursement between 2003 and 2010.

Read more here: http://www.denverpost.com/business/ci_28046592/davita-will-pay-495-million-settle-atlanta-whistleblower

*Disclaimer: The views and opinions on this blog are those of the author. Nothing contained in this weblog is intended as legal advice. This weblog was created to provide general information, opinions of the author and general musings. Accessing this website is not a consultation for legal advice or services and this weblog does not create an attorney-client relationship.

 

 

Salomon Melgen, Embattled Bob Menendez Donor, Indicted On Medicare Fraud

Credit: Getty Images

Credit: Getty Images

The Huffington Post is reporting some shocking news related to the New Jersey Sen. Bob Menendez scandal. The article states that Salomon Melgen, a Florida physician charged with corruption along with Sen. Menendez, was indicted on Medicare fraud charges. According to prosecutors, the North Palm Beach ophthalmologist was charged with numerous counts of healthcare fraud, fraudulent claims and making false statements relating to health care. According to the article:

Menendez, a leading foreign policy voice in Congress, pleaded not guilty to corruption charges earlier this month during a federal court appearance. He is charged with accepting up to $1 million worth of lavish gifts from Melgen in exchange for political favors. He was released without bail.

Melgen also pleaded not guilty to the corruption charges and was released on a $1.5 million bond.

Tuesday’s indictment alleged that between 2004 and 2013, Melgen participated in a scheme to defraud Medicare and other healthcare programs, by submitting false claims and medical charts, according to prosecutors.

Read more here: http://www.huffingtonpost.com/2015/04/14/salomon-melgen-medicare-fraud_n_7066336.html

*Disclaimer: The views and opinions on this blog are those of the author. Nothing contained in this weblog is intended as legal advice. This weblog was created to provide general information, opinions of the author and general musings. Accessing this website is not a consultation for legal advice or services and this weblog does not create an attorney-client relationship.