Pomona (California) Valley Hospital Medical Center agreed to pay more than $2 million to resolve allegations it overbilled the state's Medicaid program for prescription medications.
From 2016 through September 2021, Pomona Valley improperly charged higher "usual and customary" costs, rather than lower "actual acquisition costs," as required under the 340B Drug Pricing Program, according to a Feb. 2 Justice Department news release.
The overbilling resulted from Pomona Valley allegedly billing for its usual costs following a federal court's temporary stay of the implementation of the California law requiring 340B providers to bill Medi-Cal at actual acquisition cost rates, the release said. But once the ban was lifted, the hospital failed to implement actual acquisition cost pricing.
The settlement agreement comes after voluntary disclosures made by Pomona Valley made in 2021 and 2023, according to the release.
Pomona Valley cooperated with federal and state authorities following the self-disclosure, according to the release. The settled claims are allegations only and Pomona Valley has not admitted wrongdoing.