Wednesday, October 21, 2009

Mylan Inc Pays US Government $121 Million for Whistleblower Dispute Over Generic Drug Sales

Generic drug maker, Mylan Inc, will pay the U.S government $121 million to settle a civil dispute, started by a whistleblower, involving Medicaid rebates on drug sales from 2000 to 2004.

The dispute called into question whether an authorized generic medicine is subject to the generic rate that Mylan paid on sales from 2000 to 2004, or a higher innovator rate. Mylan was treating its authorized generics as traditional generics, a practice they began before government guidelines were put in place.

The whistleblower, Ven-A-Care, a pharmacy in Key West, Florida, will receive $10.8 million as its share of the recovery.

Friday, October 09, 2009

Healthcare Company Pays U.S. Government $1.375 Million for Kickbacks and False Claims

After settling allegations of violating the False Claims Act, Harborside Healthcare and HHC Nutrition Services will pay the U.S. government $1.375 million after allegedly receiving kickbacks and assistance under the guise of a fake durable medical equipment (DME) provider company.

The settlement resolves allegations that the company received kickbacks from McKesson Corp and its affiliate, MediNet Corp to purchase its DME - violating the Anti-Kickback Statute and the False Claims Act.

The government’s investigations were initiated as the result of a qui tam lawsuit filed by a whistleblower. The whistleblower will receive $275,000 for their role in the investigation. The Justice Department’s Civil Division, the Office of Inspector General at the U.S. Department of Health and Human Services, and the U.S Attorney’s Office for the Northern District of Mississippi were responsible for the settlement as a result of the ongoing investigation.

Click here to read the full article “Harborside Healthcare to Pay U.S. $1.375 Million to Resolve Allegations of Kickbacks and Sham Durable Medical Services"

Tuesday, October 06, 2009

Two Guides to the FCA From the Congressional Research Service

Two guides to the FCA from the Congressional Research Service are now available for download.

Qui Tam: An Abbreviated Look at the False Claims Act and Related Federal Statutes (12 pages)
Qui tam enlists the public in the recovery of civil penalties and forfeitures and rewards those who sue in the government’s name with a portion of the recovered proceeds. This document is an abbreviated look at what the False Claims Act is and how qui tam is used.

Qui Tam: The False Claims Act and Related Federal Statutes (49 pages)
This document is the unabridged version of the article above. Extensively understand how the False Claims Act and qui tam operates.

Friday, October 02, 2009

Six Hospitals Pay $8.3 Million In Qui Tam Lawsuit

Hospitals in Indiana and Alabama have agreed to pay the federal government $8.3 million to settle a whistleblower lawsuit. The suit alleges the hospitals overcharged Medicare for routine back surgery, called “kyphoplasty.”

The six hospitals, three in Indiana and three in Alabama, settled the qui tam lawsuit ,which said that during a period from 2000 to 2008, hospitals kept patients overnight when it was not necessary, classifying the surgery as inpatient to boost hospital revenues.

This is the second group of hospitals to settle charges stemming from whistleblower lawsuits alleging Medicare billing fraud involving kyphoplasty.

Click here to find out which hospitals were involved, as well as the amounts they are paying to settle the $8.3 million whistleblower lawsuit.

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