Nursing home providers agree to $14 million settlement in kickback case

Share this article:
Mariner Health Care Inc. and SavaSenior Care have agreed to pay $14 million to the U.S. in the latest development in the Omnicare pharmacy kickback scandal, according to new reports.

In Nov 2009, the Justice Department alleged that both Mariner and SavaSenior Care conspired with the long-term care pharmacy giant to direct nursing home business to Omnicare in exchange for $50 million. The allegations came as part of a larger investigation of Omnicare, which has agreed to pay $98 million in penalties arising from its various alleged kickback schemes. The Department of Justice announced the Mariner and SavaSenior Care agreement on Friday.

Drug makers Ivax and Johnson & Johnson also have been ensnared in the Omnicare kickback scheme, according to the DOJ. In late January, a suit was filed against Johnson & Johnson for its alleged role in the dealings. (McKnight's, 1/19/10)


Share this article:

More in News

Nursing home antipsychotic use has dipped nearly 19% under national effort, latest figures show

Nursing home antipsychotic use has dipped nearly 19% ...

The percent of long-stay nursing home residents receiving antipsychotic medication has decreased 18.8% under a nationwide initiative that started in 2012.

Jimmo succeeds in getting Medicare coverage, two years after landmark case ended

Glenda Jimmo has reached a settlement with the federal government and will finally receive Medicare coverage for claims that were denied in 2007, which led her to file a class-action lawsuit over the so-called "improvement standard."

Breier named new CEO at Kindred

Breier named new CEO at Kindred

Kindred Healthcare announced Thursday that it has chosen a new top executive to lead its push toward creating a mammoth national brand. Benjamin A. Breier, the company's current president and ...