A Delaware specialty pharmacy and its CEO agreed to pay $20 million to settle a lawsuit accusing the company of a kickback scheme, according to the Justice Department.
The case accused New Castle, Del.-based BioTek reMEDys and its CEO, Chaitanya Gadde, of waiving copays to increase revenue and bribing physicians to refer their patients to the pharmacy for at least five years, according to a Sept. 30 news release The alleged payments to physicians included gifts, dinners, and free administrative and clinical services.
The lawsuit also accused David Tabby, MD, a physician who operated a neurology practice in Pennsylvania, of referring patients to BioTek in exchange for payments. Dr. Tabby also settled, and he agreed to pay $480,000.