Omnicare to pay $28M to settle allegations of kickbacks

Omnicare Inc., has agreed to pay $28 million to settle a lawsuit with the Department of Justice.

The nation’s largest nursing home pharmacy was alleged to have solicited and received kickbacks from pharmaceutical manufacturer Abbott Laboratories in exchange for recommending physicians prescribe Depakote, an anti-epileptic drug, to nursing home residents.  

“Every day, elderly nursing home residents suffering from dementia rely on the independent judgment of our nation’s healthcare professionals for their personal care and their medical treatment,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Department of Justice’s Civil Division. “Kickbacks to entities making drug recommendations compromise their independence and undermine their role in protecting nursing home residents from the use of unnecessary drugs.”

CVS Health Corporation acquired Omnicare in 2015, about six years after Omnicare ended the conduct that gave rise to the settlement. 

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