PharMerica Corp. to Pay $9.25 Million for Depakote Kickback

According to the Department of Justice the nation’s second-largest nursing home pharmacy, PharMerica Corp., has agreed to pay $9.25 million to resolve allegations that it solicited and received kickbacks from pharmaceutical manufacturer Abbott Laboratories in exchange for promoting the prescription drug Depakote for nursing home patients.  PharMerica is headquartered in Louisville, Kentucky.

“Elderly nursing home residents suffering from dementia have little control over the medications they receive and depend on the unbiased judgment of healthcare professionals for their daily care,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’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.”

Nursing homes rely on consultant pharmacists, such as those employed by PharMerica, to review their residents’ medical charts at least monthly and make recommendations to their physicians about what drugs should be prescribed for those residents.  The settlement announced today resolves allegations that in exchange for recommending that physicians prescribe Depakote, an anti-epileptic drug manufactured by Abbott, to nursing home residents, PharMerica solicited and received kickbacks from Abbott.  The government alleges that the kickbacks were disguised as rebates, educational grants and other financial support.

In May 2012, the United States, numerous individual states and Abbott entered into a $1.5 billion global civil and criminal resolution that, among other things, resolved Abbott’s liability under the False Claims Act for alleged kickbacks to nursing home pharmacies, including PharMerica.  The settlement announced today resolves PharMerica’s role in that alleged kickback scheme.

Approximately $6.75 million of the settlement will go to the United States, while $2.5 million has been allocated to cover Medicaid program claims by states that elect to participate in the settlement.  The Medicaid program is jointly funded by the federal and state governments.

“Nursing home pharmacies accepting kickbacks from drug makers in exchange for prescribing certain prescription drugs puts vulnerable residents at risk for receiving unnecessary medications, corrupts medical decision making, and inflates health care costs,” said Special Agent in Charge Nick DiGiulio of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG).  “Our agency will continue to root out such corrosive practices from our health care system.”

The settlement partially resolves allegations in two lawsuits filed in federal court in the Western District of Virginia by Richard Spetter and Meredith McCoyd, former Abbott employees.  The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery.  The act also allows the government to intervene and take over the action, as it did in part in this case.  As part of today’s resolution, Ms. McCoyd will receive $1 million from the federal share of the settlement amount.

Elderly Overmedicated--When Will This Abuse Stop



Elderly pay the price once again for someone's greed!

NPR (9/5, Jaffe, 519K) reported in its "Shots" blog that a Federal lawsuit against two California nursing homes accused of overmedicating patients may offer a new approach to dealing with the persistent problem of such facilities overmedicating their residents."

 The US Attorney for Northern California "claims that the two nursing homes provided 'grossly inadequate, materially substandard and/or worthless services,'" while they "received about $20 million from Medicare and Medicaid for those services."

 Kelly Bagby, a senior attorney with the AARP Foundation, said, "Under the False Claims Act, the government can ask for triple damages."

Possible Types of Fraud in Nursing Homes



A common type of fraud in nursing homes is unnecessary billing for tests and medical procedures. A nursing home may prescribe an extremely expensive medication to a patient when the reality is that he or she doesn't need that medication at all. The patient may receive medical procedures that are not required to treat his or her condition, and these procedures may even cause unnecessary pain to the patient. Family members have the right to question the medications and procedures administered to their loved one, and they should not be afraid of critiquing the use of certain medications and procedures. It may even be wise to have a second medical opinion when a patient is receiving costly drugs or requires expensive medical procedures. These expensive medications and procedures may be another way to provide “kickbacks” to pharmaceutical companies and other entities. These “kickbacks,” however, are considered illegal in the United States and violate the Fair Claims Act.

ONE SUCH EXAMPLE

Two courageous nurses who worked at Momence Meadows Nursing Center reported that they had  witnessed fraudulent billing practices at the facility to government officials who in turn conducted an investigation into how owners of the facility were providing care. After determining that the allegations of the nurses’ were well founded, the nurses were then permitted to pursue the matter against the nursing home on the government’s behalf in a case referred to as a false claims act lawsuit.

After hearing the evidence in this case, a jury in Federal Court of Southern Illinois reached a verdict against the former owner of the facility.  All told, the jury awarded approximately $28M based upon the fraudulent billing at the facility– billing for services either never provided or provided in an inferior manner. As individuals who initiated this fraudulent billing lawsuit, the nurses are entitled to a percentage of the verdict– reported to be approximately $7 million.







Use Of Antipsychotic Medications Soars In Nursing Homes

 

 

Nursing homes throughout the country are resorting to the use of powerful antipsychotic drugs in order to ensure that nursing home residents are ‘less difficult’ to deal with. This goes on despite the fact that there have been many different warnings that reveal that elderly patients with dementia may not survive this type of treatment.

An investigation revealed that many nursing homes, especially those struggling with staff shortages, would use these antipsychotic drugs to calm down and ‘restrain’ patients that are aggressive, agitated, or wandering. In fact, the investigation revealed that in 40 of the homes researched across the border, almost half of the residents were being given these medications.

About the drugs themselves

Perhaps even worse was the fact that these medications (such as quetiapine and olanzapine) are not approved for use on elderly patients who suffer from dementia. According to the warning on the medications themselves, elderly patients who have dementia and still take the medication face a 60 percent increase in risk of death when compared to similar patients not taking those drugs. Doctors, family members, and even a coroner believe that these medications may have contributed to the deaths of seniors who have dementia.

How is this happening?

Part of the issue here is the fact that ‘off-label use’ is legal for doctors. This means that the medications are used for an age group or a condition for which it has not been approved. These medications are not proven to work for seniors, they are extremely powerful, but yet these medications are being used routinely. In fact, in some seniors, the side effects may be the very symptoms that the drugs are trying to minimize – confusion and violence.

Part of the problem is the fact the overworked and underpaid staff is no longer able to identify specific issues within the patients, they are only able to manage specific crises. This is what happens when elder care becomes a business instead of a calling.

Not for everyone

The truth is that elder care is not always easy. There are days that the job might not seem as rewarding as it did before. This is why it is on the supervisory board to hire people that are capable of dealing with these occasional frustrations. It is never acceptable to use these powerful antipsychotic drugs on people who do not need them – especially if the side effects are as dangerous as they are in this instance.
There is no denying that a number of residents who side in long-term elder care facilities suffer from bipolar disorder, schizophrenia, or other conditions that may need antipsychotics. However, the majority of elderly patients suffer from dementia – not a form of mental illness.

If you feel that someone close to you is being given these medications without a true need, it is vital that you speak up. If you do find out, make sure to contact www.vanderlindenlaw.com  to seek out any legal compensation that you may be due, but also to ensure that this type of treatment of the elderly patient stops as quickly as possible.

JOHNSON AND JOHNSON WHISTLEBLOWER CASE NOVEMBER 2013

 Settlement with pharmaceutical giant Johnson & Johnson means a record payout for whistleblowers.The $167.7 million award is one of the largest whistleblower awards in U.S. history. It will be divided among an unspecified number of whistleblowers in three states, according to the Justice Department.

 

The $2.2 billion settlement between Johnson & Johnson
& authorities settles charges that J&J marketed drugs for unapproved uses and gave kickbacks to doctors and nursing homes. Attorney General Eric Holder said Johnson & Johnson and two subsidiaries "lined their pockets at the expense of American taxpayers, patients and the private insurance industry."
The settlement addresses both state and federal charges in criminal and civil courts.

The sum includes $112 million for whistleblowers in Pennsylvania, nearly $28 million in Massachusetts, and $28 million in California.
Joe Strom, a former employee of Johnson & Johnson subsidiary Scios, will receive the entire $28 million awarded in California. He first brought suit against J&J in 2005 and ultimately helped government attorneys prepare for depositions and build their case. Strom worked for Scios for 9 months in 2003 and 2004.

 It's because of brave people like this group that BIG COMPANIES are exposed. It's got to be tough to come forward with information that not only could change your employment, but every area of your life. We need more advocates that are brave enough to face the wrongdoing in this world today!

Thank you for everyone who has stood up for what is truly right and not what will make you rich!

Omni Pharmaceuticals Famous for their Pharmaceuticals or Famous for their Kickback payouts!

 

 

Omni Pharmaceuticals was ordered to pay $124.24 million to resolve the issue of them paying kickbacks to secure contracts to nursing home facilities for deep discounts. We are the ones whom are affected indirectly. By companies like this being corrupt and overcharging Medicare and Medicaid will eventually have the trickle down effect by increasing premiums for these programs. Let's be honest when you get to the point in your life that you qualify for these services is it fair that you are overcharged so some CEO can have a couple extra vacations. If these practices continue without consequence there will soon be  point when these programs are omitted as an option. Have you ever witnessed this kind of selfishness in your company? What would you do if you were given this information? Would you have the courage to come forward or would you be like the majority of workers and look the other way so your paycheck isn't jeopardized? I say we owe our thanks to the people who have had the backbone to stand up for what's right in America today!!

 

Since January 2009 The Justice Department has recouped more than $13.9 billion in cases involving fraud against federal healthcare programs. The impact of these false claims if not exposed will continue to impede on our society forever. If you have any questions or would like more information please contact Jim Vander Linden today! (612) 339-6841. http://www.vanderlindenlaw.com

 

 Do you think your clinic or dr. would ever prescribe something for you only to get a kickback from the manufacturer? It's a terrifying thought isn't it, but truth be told it happens everyday. If you know of fraud on any level happening in your area it really is your responsibility as a citizen of the community to stop it TODAY!