Category: Healthcare

Merck Settles Massachusetts Medicaid Fraud Allegations for $24 Million—Total Recovery Now $47 Million

Merck & Co, Inc., the second largest drug manufacturer in the nation, agreed to pay $24 million to the Commonwealth of Massachusetts to settle allegations that it knowingly reported inflated drug prices to the Massachusetts Medicaid program.  The $24 million settlement is the largest single payment made to the Commonwealth for any one Medicaid fraud case in the state’s history,

Diakon Lutheran Social Ministries to Pay $10.56 Million for Improper Hospice Reimbursement

Diakon Lutheran Social Ministries, a charitable organization operating as Diakon Hospice St. John (Diakon), agreed to pay the U.S. $10.56 million to settle allegations that it submitted claims for Medicare reimbursement for ineligible hospice patients from October 1, 2004 to October 1, 2010.   Diakon, which is part of the Evangelical Lutheran Church of America,

KV Pharmaceutical to Pay $17 Million for Unapproved Drug Reimbursement

KV Pharmaceutical Company, the St. Louis parent corporation of the now defunct Ethex Corporation, has agreed to pay $17 million to the federal and state governments to resolve allegations that Ethex fraudulently received reimbursement for two of its drugs from federal healthcare programs. According to allegations made by relator Constance Conrad in U.S.

Merck to Pay $950 million to settle Vioxx allegations

Merck has agreed to plead guilty to a misdemeanor criminal charge and pay $950 million to the federal and state governments to resolve allegations that it illegally marketed its painkiller drug Vioxx for off-label use and made false statements about the drug’s cardiovascular risks. Merck not only withheld data showing that Vioxx increased patient’s risks of heart attack and stroke,

Medical Providers Support New CMS Administrator

Marilyn Tavenner, the new administrator of the Center for Medicare and Medicaid Services (CMS), has drawn the support of major medical organizations including the American Medical Association (AMA), the American Hospital Association (AHA), America’s Health Insurance Providers (AHIP), and the Association of American Medical Colleges (AAMC). Tavenner was nominated by President Obama to be administrator of CMS after the resignation of Dr.

Big Apple Settles False Claims for $70 million

New York City has agreed to pay the federal government $70 million to settle claims that it allegedly overbilled Medicaid by improperly approving home care for elderly clients.  As part of the settlement, NYC admitted that it reauthorized treatment of a number of patients without having first obtained required assessments from doctors,

GlaxoSmithKline Pays $3 billion to Settle Unfair Practices regarding the Sale of Avandia

GlaxoSmithKline, one of the world’s largest drug manufacturers, settled a number of claims resulting from government investigations including one tied to the sale of diabetes drug, Avandia, which has been associated with increased heart risks, and one related to off-label marketing of other drug products. GlaxoSmithKline contends that as a result of claims such as these,

California Device Manufacturer Settles Anti-Kickback Claims

DFine, a California provider of vertebral augmentation devices, agreed to resolve Justice Department allegations of false claims for $2.9 million.  The government charged DFine with using customer surveys as vehicles to pay participating physicians kickbacks to induce them to use DFine devices.  The government alleged that DFine paid $500 to a physician who provided product information,

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