iStockphoto/Thinkstock(WASHINGTON) — The largest provider of pharmaceuticals and pharmacy services to nursing homes in the U.S., Omnicare Inc., agreed to pay a $124.24 million settlement on Wednesday after they allegedly offered improper financial incentives to nursing facilities in exchange for continued selection of Omnicare as the homes’ drug supplier.
The settlement was announced on Wednesday by the U.S. Justice Department. According to a release, Omnicare provided improper discounts in order to provide medication to Medicare and Medicaid beneficiaries. The illicit agreements allowed Omnicare to claim reimbursement from Medicare and Medicaid.
“Nursing homes should select their pharmacy provider based on the best quality, service and cost to the residents, not based on improper discounts to the nursing facility,” U.S. Attorney for the Northern District of Ohio Steven Dettelbach said.
Of the settlement funds, $8.24 million will go to various states which funded the Medicaid programs that were impacted by the improper activity.
Follow @ABCNewsRadio
Copyright 2014 ABC News Radio
