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Fact Sheet: Department of Justice Efforts to Combat Health Care Fraud and Abuse

f Baptist's hospitals. The

payments were made pursuant to a contract under which the oncology group

provided physics and dosimetry services to the two hospitals. The

government learned of this matter after Baptist reported it to the

Department of Health and Human Services Office of the Inspector General.

-- Merck & Company: In February 2008, the Civil Division and U.S.

Attorneys Offices in the Eastern District of Pennsylvania and the

Eastern District of Louisiana finalized a $650 million settlement with

Merck & Company to resolve allegations that it failed to remit

legally-required rebates to Medicaid and other government health care

programs and paid illegal remuneration to health care providers to

induce them to prescribe the company's products.

-- CVS Caremark: In March 2008, CVS Caremark, which operates over 6,000

retail pharmacies throughout the United States, agreed to pay the United

States, 23 states, and the District of Columbia $36.7 million to resolve

allegations that it substituted capsules of Ranitidine (generic Zantac)

for tablets solely to significantly increase the cost and profit rather

than for any legitimate medical reason.

-- Medtronic: In May 2008, the Civil Division and the United States

Attorney for the Western District of New York reached a $75 million

settlement with Medtronic, Inc. to settle allegations that Kyphon, Inc,

which Medtronic only recently acquired, caused hospitals to submit

inflated claims for treatment associated with kyphoplasty treatment, a

minimally invasive surgical procedure used to treat spinal fractures.

Medicare Fraud Strike Force:

In May 2007, the Departments of Justice and Health and Human Services launched the Medicare Fraud Strike Force. The Department's Fraud Sect

SOURCE U.S. Department of Justice
Copyright©2008 PR Newswire.
All rights reserved

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