A case alleging that PharMerica paid kickbacks to nursing homes is back on, following the decision of a federal appeals court.
A New Jersey district court had previously tossed out a whistleblower lawsuit against the vendor, based on the alleged fraud already being disclosed publicly. But a three-judge appeals court panel overturned that ruling Tuesday, noting that public documents don’t address allegations of fraudulent transactions made by whistleblower Marc Silver.
Silver is accusing PharMerica of illegally discounting prescription drugs for nursing home Medicare Part A patients to secure contracts for patients covered by Medicare Part D and Medicaid, a practice known as “swapping,” according to the New Jersey Law Journal.
Silver, a developer and operator of skilled nursing facilities, alleged that PharMerica illegally billed the federal government for contracts obtained through kickbacks, according to the Law Journal. Other plaintiffs in the case include the U.S. government, 27 states and the District of Columbia. The case was remanded for further proceedings.