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kickback 62 articles

Three Convicted in $4.3 Million Kickback Scheme Targeting TRICARE

The owner of a Florida pharmacy, a physician, and a patient recruiter have been convicted of criminal charges for their involvement in an illegal kickback scheme that cheated a taxpayer-funded health care program for active military members out of $4.3 million. According to the U.S. Department of Justice (DOJ), Larry Howard, 53, the owner of Fertility Pharmacy in Oviedo, Florida, paid illegal health care kickbacks to patient recruiter Raymond Stone, 57, of Orlando. Mr. Stone in return referred patients to doctors selected by Mr. Howard. Those doctors then prescribed expensive pain and scar creams to Tricare patients. The prescriptions were ... Read More

Whistleblower Was Key in $7.55 Million Recovery From Opioid Drugmaker

A whistleblower lawsuit has helped the U.S. government recover more than $7.55 million from a California-based drugmaker accused of contributing to the nation’s opioid crisis by paying kickbacks to doctors who prescribe its potent fentanyl-based painkiller Abstral. “Given the dangers associated with opioids such as Abstral, it is imperative that prescriptions be based on a patient’s medical need rather than a doctor’s financial interests,” acting Assistant Attorney General Chad Readler said in a statement Friday. The settlement resolves a lawsuit filed against California-based Galena Biopharma Inc. by Lynne Dougherty under the whistleblower provisions of the False Claims Act, which allows private ... Read More

Cardiovascular Systems Whistleblower Awarded $25 Million In Retaliation Case

A whistleblower who claimed his employer Cardiovascular Systems Inc. (CSI) retaliated against him for complaining of an illegal kickback scheme has been awarded more than $25 million by a Los Angeles Superior Court jury. Steven Babyak, a regional sales manager for Minnesota-based CSI in the Southwest, sued his former employer for violation of whistleblower protections and wrongful termination after he was fired without warning on June 1, 2015. CSI manufactures and markets medical devices for the treatment of cardiovascular diseases. According to the StarTribune, Mr. Babyak claims in his lawsuit that his supervisor, area sales director Todd Goldberg, introduced a ... Read More

Kansas Home Health care Provider Pays $1.8 Million To Resolve Whistleblower’s Kickback Allegations

A Kansas home health care company and its owner have agreed to pay the U.S. $1.8 million to settle allegations brought by a whistleblower under the False Claims Act that they paid unlawful kickbacks for Medicaid patient referrals. The U.S. Department of Justice said Tuesday that Best Choice Home Health Care Agency Inc. of Kansas City, Kansas, and its owner, Reginal King, allegedly boosted Medicaid billings actively seeking referrals and paying for them. According to the False Claims Act lawsuit, Mr. King and Best Choice entered into a kickback arrangement with Christopher Thomas, an individual who transported patients from their ... Read More

Georgia Anesthesia Company Resolves Whistleblower’s Kickback Allegations

An Alpharetta, Ga., anesthesia company has agreed to pay the U.S. and the State of Georgia more than $1 million to resolve allegations brought by a whistleblower in a False Claims Act lawsuit that it gave health care providers kickbacks in return for valuable referrals and exclusive contracts. Sweet Dreams Nurse Anesthesia will pay to the United States $1,034,416 and the State of Georgia $12,079 to close out a 22-month federal investigation and settle allegations that it violated the federal False Claims Act, the Federal Anti-Kickback Statute, and the Georgia False Medicaid Claims Act with its kickback schemes. In one ... Read More

Whistleblower Helps U.S. Recover Nearly $35 Million From Sleep Apnea Mask Company

A physician who worked for a medical equipment supplier will receive a $5.38-million whistleblower reward for helping the U.S. government recover nearly $35 million from a producer of sleep apnea masks. According to the U.S. Justice Department, Dr. Gibran Ameer, who has worked for various medical supply companies, sued Respironics Inc., a Pennsylvania-based manufacturer of sleep apnea masks, under the False claims Act, alleging the company operated an illegal kickback scheme that resulted in the submission of false claims to federal and state health care programs. Dr. Ameer sued Respironics under the False Claims Act, which contains whistleblower provisions that ... Read More

$60-Million Accredo Settlement Earns Novartis Whistleblower Another Payout

A former sales manager for Novartis Pharmaceutical Corp. received his second whistleblower payout Jan. 29 for exposing a giant kickback scheme involving the drug company and two specialty pharmacy companies – Accredo Health Group Inc. and BioScrip Inc. A New York federal court awarded whistleblower David Kester $12.2-million when Accredo agreed to pay the U.S. government $60 million to settle its part of the False Claims Act lawsuit he filed against the three companies in 2011. Previously, Mr. Kester received $2.3 million after BioScrip agreed to settle its part of the case in 2014, bringing his total awards so far ... Read More

Novartis settles whistleblower lawsuit alleging kickback scheme for $390 million

Just ahead of a trial date set for next week, Novartis AG announced it will settle a whistleblower lawsuit filed under the federal False Claims Act to the tune of $390 million. The lawsuit alleged the drugmaker paid improper and illegal kickbacks to pharmacies in exchange for their promoting certain of its prescription drugs. The whistleblower lawsuit was filed by former Novartis employee David Kester. Under the qui tam provisions of the False Claims Act, private citizens can file lawsuits on behalf of the U.S. government. As a reward for exposing wrongdoing, whistleblowers may be entitled to 15-30 percent of ... Read More

PharMerica Pays $9.25 Million to Settle Whistleblowers’ Kickback Allegations

PharMerica Corp., the second-largest nursing home pharmacy, will pay $9.25 million to settle allegations stemming from a whistleblower lawsuit that it received generous kickbacks from Abbott Laboratories in exchange for pushing its anti-epileptic drug Depakote on nursing home patients. Nursing homes depend on pharmacy consultants and managers, such as those who work for PharMerica, to review the medical charts of resident patients once a month or more to make recommendations to physicians about what drugs should be prescribed for those residents. The settlement announced the U.S. Justice Department Oct. 7 resolves allegations that PharMerica sought and received illegal kickbacks from ... Read More

National dialysis clinic to pay $350 million to settle whistleblower allegations

DaVita Healthcare Partners, Inc., one of the top providers of dialysis services in the U.S., has agreed to pay $350 million to resolve whistleblower allegations that it violated the False Claims Act by providing kickbacks to physicians who would in turn refer patients to DaVita dialysis clinics. Denver, Colo.-based DaVita operates dialysis clinics in 46 states and Washington D.C. According to the U.S. Justice Department, the settlement resolves allegations originally brought in a qui tam complaint by David Barbetta, a former Senior Financial Analyst in DaVita’s Mergers and Acquisitions Department. The U.S. chose to intervene in the case, as the ... Read More