The Justice Department has filed a False Claims Act complaint against Omnicare Inc., alleging the pharmaceutical giant received millions in kickbacks from Abbott Laboratories over a 10-year period.
Medicaid Fraud Control Units recovered about $10.3 million from nursing facilities in fiscal year 2013, according to an annual report issued Friday. Civil fraud settlements and judgments accounted for the majority of nursing home recoveries last fiscal year, the report showed.
The former director of nursing at a California nursing home was sentenced Wednesday to three years in prison for administering powerful drugs to subdue residents.
Abbott Laboratories will pay $1.5 billion over allegations that it improperly promoted the anti-seizure drug Depakote for dementia care. The firm also reportedly paid kickbacks to physicians and long-term pharmacists to encourage its off-label use, according to court records. The case includes a criminal fine and forfeiture of $700 million and civil settlements with the federal government and states totaling $800 million. The company also agreed to enter a five-year probationary period.
Abbott Laboratories has pleaded guilty and agreed to pay $1.5 billion over allegations that it promoted the anti-seizure drug Depakote for uses that were not approved by the Food and Drug Administration.