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Parker Waichman LLP Applauds Whistleblower’s Efforts to Compel Recovery of $120M from Omnicare for Allegedly Defrauding Medicare
Date:10/24/2013

New York, New York (PRWEB) October 24, 2013

Parker Waichman LLP, a national law firm dedicated to protecting the rights of individuals against fraud, extols the successful efforts of whistleblower Donald Gale, who filed the lawsuit that compelled Omnicare to pay the U.S. government $120 million to settle allegations that it had been giving nursing homes huge markdowns on prescription drugs in exchange for patient referrals that the company allegedly used to defraud Medicare (USA ex rel. Gale v. Omnicare Inc., U.S. District Court, Northern District of Ohio, Case No. 1:2010-cv-00127). The lawsuit against Omnicare — the company has not admitted liability — was scheduled to go to trial next week, on Oct. 28, according to an Oct. 23 Bloomberg report. As for the specific charges in the lawsuit, according to court papers, Omnicare allegedly provided select nursing homes with deep discounts on prescription drugs for inpatients covered under Medicare Part A, a federal program that pays these facilities a fixed fee per patient, per day, for the patient’s first 100 days. The nursing homes, in return, allegedly gave referrals of other patients whom Omnicare could bill against other public insurance programs, according to court papers.

The Civil War-era False Claims Act provides whistleblowers with protection and the opportunity for compensation. Amendments added to the Act in 1986 helped to incentivize whistleblowers to come forward, primarily by raising the amounts that can be charged for damages and penalties. As a result, whistleblowers can be awarded millions of dollars today; between 15% and 30% of the amount recovered by the government. The False Claims Act perm
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