CLEVELAND (AP) — Omnicare Inc. agreed to pay $124 million to settle two whistleblower lawsuits that alleged the company engaged in a kickback scheme with skilled-nursing facilities across the country, the U.S. Justice Department announced Wednesday.
The company, based in Cincinnati, is the nation's largest provider of drugs and pharmacy services to skilled-nursing facilities. The U.S. Department of Justice issued a statement that said Omnicare gave discounts to some facilities so they would keep the company as their drug provider for elderly Medicare and Medicaid recipients.
Omnicare said in a statement Wednesday that it committed no wrongdoing and settled the case to end litigation.
A settlement agreement said Omnicare paid skilled-nursing facilities with discounted drug prices and "prompt pay discounts," a violation of the federal anti-kickback statute. "Schemes such as this one undermine the health care system and take advantage of elderly nursing home residents," Assistant Attorney General Stuart Delery said in a statement.