National Pharmacy Omnicare Pays ‘Unusual’ Settlement to Resolve Charges of Generic Drug Switching in Algonquin Nursing Homes, Resulting From ‘Qui Tam’

Omnicare, Inc., which calls itself “the nation’s leading provider of pharmaceutical care for seniors,” paid $283,000 to settle Medicaid fraud charges by the State of Delaware. Delaware alleged that the pharmacy had committed Medicaid fraud by illegally switching the drugs of senior citizens in nursing homes and other facilities. Omnicare’s conduct had originally been reported by a Chicago pharmacist whistleblower, who was fired by Omnicare after reporting the switching. Today’s settlement resulted from a “qui tam” suit filed under the Delaware False Claims Act by pharmacist whistleblower Bernard Lizitza with Chicago qui tam lawyers Michael Behn and Linda Wyetzner in the United States District Court for the Northern District of Illinois. Delaware’s False Claims Act, like the federal False Claims Act, allows private citizens with knowledge of fraud (called “relators”) to help the government recover ill-gotten gains.

Wilmington, DE (Advertiser Talk) 11-Aug-2009 — Omnicare, Inc., which calls itself “the nation’s leading provider of pharmaceutical care for seniors,” paid $283,000 to settle Medicaid fraud charges by the State of Delaware. Delaware alleged that the pharmacy had committed Medicaid fraud by illegally switching the drugs of senior citizens in nursing homes and other facilities. Omnicare’s conduct had originally been reported by a Chicago pharmacist whistleblower, who was fired by Omnicare after reporting the switching. The United States and 43 other states had settled similar Medicaid fraud allegations with Omnicare in November of 2006. (ND IL 01 C 7433)

“This is an unusual achievement by Delaware Attorney General Beau Biden’s Office,” said the pharmacist’s lawyer, Michael I. Behn, of Behn & Wyetzner, Chartered in Chicago, Illinois. “Deputy Attorney General Daniel Miller tenaciously pursued this case, even after the nationwide settlement, to ensure that Delaware taxpayers got back every nickel.”

the nation’s leading provider of pharmaceutical care for seniors the nation’s leading provider of pharmaceutical care for seniors This is an unusual achievement by Delaware Attorney General Beau Biden’s Office Deputy Attorney General Daniel Miller tenaciously pursued this case, even after the nationwide settlement, to ensure that Delaware taxpayers got back every nickel. The Delaware Attorney General’s Office and Dan Miller in particular have been at the forefront of national Medicaid fraud prosecutions This remarkable Omnicare settlement highlights the kind of work Dan and Attorney General Biden’s office are doing every day for Delaware taxpayers. Deputy Attorney General Miller is Director of Delaware’s Medicaid Fraud Control Unit, which polices Delaware’s Medicaid system. Miller also serves as President of the National Association of Medicaid Fraud Control Units, the organization uniting all state Medicaid fraud prosecutors and investigators.

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