Department of Justice files suit against Johnson & Johnson in connection with kickback scheme with Omnicare

Share this article:
Most assisted living residents need meds help, survey finds
Most assisted living residents need meds help, survey finds

The U.S. Department of Justice on Friday filed a lawsuit against Johnson & Johnson for its alleged role in a kickback scheme with Omnicare, the nation's largest long-term care pharmacy chain.

Between 1999 and 2004, Johnson & Johnson allegedly paid tens of millions of dollars to nursing home pharmacy supplier Omnicare. In return, Omnicare made recommendations to hundreds of nursing home pharmacists about Johnson & Johnson-made drugs, according to the complaint. In particular, it recommended that the pharmacists prescribe the antipsychotic Risperdal. The alleged deal increased Omnicare's annual purchase of Johnson & Johnson products from $100 million to more than $280 million. It also nearly lowered the “best price” of Risperdal that Johnson & Johnson was required to report to Medicaid.

In November of 2009, Omnicare paid $98 million to the government to settle its own role in the kickback scheme. The suit was filed in a Boston federal court.
Share this article:

More in News

Large hepatitis outbreak reaches 47 cases, podiatry company denies ManorCare's charges

The number of people infected in an infamous North Dakota Hepatitis C outbreak has risen, state health officials say.

National Quality Forum supports quality measures in bill to standardize post-acute assessments

National Quality Forum supports quality measures in bill ...

The National Quality Forum has come out in strong support of a proposed standardized quality measures, such as skin integrity, across different types of post-acute care settings. Uniform assessments are ...

CMS changes mind on hospice drugs

The Centers for Medicaid & Medicare Services has revised guidance on authorization of hospice drugs for those under Medicare Advantage and Part D plans, according to a new memo.