Pharmaceutical company to pay $1 million to settle claims on switching drugs

Share this article:

The Maine subsidiary of Omnicare Pharmacy, a Fortune 500 company, agreed to pay $1 million to settle claims that it switched nursing home patients' prescriptions to a medication that would be more profitable for the company.

Omnicare provides medication for about 7,000 nursing home patients in Maine. The company is accused of creating fake prescriptions to switch patients' heartburn medicine, which meant that the state's Medicaid program paid $82 per month per patient instead of $15.

Patients were switched from tablet form of ranitidine, a generic heartburn medication, to the capsule form. Experts say the two different forms are not therapeutically equivalent.

The company denies the claims but said it settled the charges to avoid extraneous litigation costs.

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 ...