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

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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)


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