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Kindred Healthcare settles drug overbilling suit

Kindred Healthcare, Inc. and its successor PharMerica Healthcare Pharmacy, LLC, have agreed to pay over $1.3 million to settle claims that Kindred overbilled TennCare and the Medicaid program for pharmaceuticals, according to a press release from the U.S. Attorney’s Office for the Eastern District of Tennessee.

Kindred provides medications to TennCare patients in group homes and long-term care facilities throughout Tennessee. The suit, which originated as a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, alleged that Kindred’s Knoxville facility billed for a higher number of drugs than were actually administered.

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