TBC Products, an indirect subsidiary of drug wholesaler McKesson Corp., has agreed to plead guilty to attempting to obstruct a federal audit. It will pay $7.4 million as a fine and civil settlement.
Federal agents had been investigating Medicare fraud in southern Illinois. TBC admitted giving undercover agents invoices that made it look like McKesson was charging for tube-feeding pumps that were free. This paperwork made it possible for nursing homes to bill taxpayers for the free pumps.
Reuters reported on the settlement on November 12, 2004.
McKesson also signed a five-year corporate integrity agreement with the Department of Health & Human Services.