PharMerica, a company that provides pharmacy supplies to long-term care institutions, will pay $6 million to settle kickback charges. The Health and Human Services Office of Inspector General said it was the largest ever civil monetary payment in a kickback case.
The company was accused of paying an excessive amount of money for a small Virginia pharmacy. In return for the sales price the seller made a commitment to refer its Medicaid and Medicare pharmacy business to PharMerica for the next seven years. The seller also owned 17 nursing homes and eight assisted living facilities.
The Health & Human Services Inspector general issued a March 29, 2005 press release on the settlement.