The federal government has filed a False Claims Act complaint against Cincinnati-based Omnicare — the nation's largest provider of pharmaceuticals and pharmacy services to nursing homes — alleging the company received millions of dollars in kickbacks from pharmaceutical manufacturer Abbott Laboratories in Abbott Park, Ill., according to the Department of Justice.
In its lawsuit, the government alleges Omnicare received kickbacks from Abbott in exchange for purchasing and recommending Depakote — a prescription drug manufactured by Abbott — to dementia patients in nursing homes serviced by Omnicare. The kickbacks were allegedly solicited and received by Omnicare from 1998 to 2008.
The government further alleges Omnicare disguised the kickbacks from Abbott in a number of ways, including as grants and educational funding, according to the report.
Acting Assistant Attorney General Joyce R. Branda said, "Elderly nursing home residents suffering from dementia are among our nation's most vulnerable patient populations, and they depend on the independent judgment of healthcare professionals for their daily care. Kickbacks to consulting pharmacists compromise their independence and undermine their role in protecting nursing home residents from the use of unnecessary drugs."
Regarding the complaint, Omnicare stated it "is committed to ensuring that it remains in strict compliance with all applicable laws, regulations and standards in each of the markets and jurisdictions in which it operates." Omnicare also stated it believes the lawsuit "is without merit," and it intends to "vigorously defend against the claims."
Omnicare and Abbott have both been involved in False Claims Act and Anti-Kickback Statute lawsuits before. In 2012, Abbott agreed to pay $1.5 billion to resolve allegations the company had paid kickbacks to nursing home pharmacies. This year, Omnicare agreed to pay $124.4 million to resolve allegations it violated the Anti-Kickback Statute by offering improper financial incentives to skilled nursing facilities in return for their continued selection of Omnicare to supply drugs to elderly Medicare and Medicaid beneficiaries.
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