Navigation Links
U.S. Intervenes in False Claims Act Suit Against McKesson Corp. and Golden Horizons Nursing Homes
Date:10/6/2008

WASHINGTON, Oct. 6 /PRNewswire-USNewswire/ -- The United States has intervened in a lawsuit against several companies alleging that they submitted false claims to Medicare arising from illegal kickbacks and the establishment of sham durable medical equipment (DME) suppliers, the Justice Department announced today. The companies are McKesson Corporation, McKesson Medical-Surgical MediNet Inc. (MediNet), GGNSC Holdings LLC, Golden Gate Ancillary LLC, Beverly Enterprises Inc., CERES Strategies Inc. and CERES Strategies Medical Services Inc. (CSMS).

The government alleges in its complaint that McKesson, through its subsidiary MediNet, structured arrangements that ensured that McKesson supplies were used by Beverly nursing facilities. The suit further alleges that McKesson promised Beverly facilities (now known as Golden Horizons) significant profits to be gained from making it appear to Medicare that it was Beverly - not McKesson or MediNet - that was supplying the DME equipment and supplies. MediNet did so by setting up and managing a purported DME supplier, called CSMS, which was affiliated with Beverly, but which was actually managed by MediNet. McKesson is one of the nation's largest suppliers of DME equipment, which includes, among other things, enteral feeding devices and oxygen supplies.

The government's complaint alleges that MediNet's management allowed this entity (which was thinly capitalized, had few employees, had almost no DME equipment and performed none of the DME patient services at the Beverly facilities) to bill Medicare and retain millions of dollars in Medicare payments for services and supplies that actually were supplied by MediNet and not by CSMS. In exchange for accepting this arrangement that enabled Beverly to retain these profits, the government alleges that Beverly agreed to refer to McKesson its facilities' needs for DME supplies.

The case originally was filed by a private citizen under the qui tam provisions of the False Claims Act in the U.S. District Court for the Northern District of Mississippi. Under the act, a private individual can sue on behalf of the government and can potentially share in any recovery.

The investigation has been handled by the Justice Department's Civil Division, the U.S. Attorney's Office for the Northern District of Mississippi and the Office of the Inspector General at the Department of Health and Human Services.


'/>"/>
SOURCE U.S. Department of Justice
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Ultrasound plus mammography finds more cancers, but increases false positives
2. Olympic Gold Medalist Marion Jones-Thompson Pleads Guilty to Making False Statements in Two Separate Federal Criminal Investigations
3. Penn researchers pinpoint the brain waves that distinguish false memories from real ones
4. Brain Yields Clues to False Memories
5. Stryker Corp. & Physiotherapy Associates to Pay U.S. $16.6 Million for Alleged False Claims to Federal Health Care Programs
6. Federal Judge Says Sugar Association Suit Accusing Johnson & Johnson of False Advertising to Go Forward
7. United States Joins False Claims Act Cases Against Three New Jersey Hospitals
8. Single reader with CAD more efficient, yields fewer false positives, and possibly more sensitive
9. Information About The Airborne Health, Inc. Settlement, and Other Ongoing Litigation Alleging False and Deceptive Marketing Of Airborne(R)
10. JAMA Article Provides False Support for CDCs Do-Nothing Position on MRSA
11. MRIs high false positive rate has little impact on womens choice of preventive mastectomy
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:10/13/2017)... ... October 13, 2017 , ... Dickinson Insurance and ... and financial preparation services, is providing an update on a charitable event that ... City Rescue is a locally recognized nonprofit that provides shelter and care for ...
(Date:10/13/2017)... ... , ... The American Board of Family Medicine's (ABFM) Board of Directors has ... succeeding Dr. James C. Puffer upon his retirement. Dr. Newton will serve in the ... at the end of 2018. Upon assuming the role of President and CEO on ...
(Date:10/13/2017)... ... October 13, 2017 , ... Southern ... and Jennifer Huggins, PharmD ’17, along with clinical associate professor Janice Frueh, ... cardiovascular diseases during the 15th Annual Women’s Health Conference. The SIU School ...
(Date:10/13/2017)... ... October 13, 2017 , ... Many families have long-term insurance that covers ... companies have a waiver for care if the client has a cognitive impairment diagnosis. ... pays for care, is often waived, so the benefits from their insurance start immediately,” ...
(Date:10/13/2017)... ... October 13, 2017 , ... Global Healthcare Management’s 4th Annual Kids ... Milford, NJ. This free event, sponsored by Global Healthcare Management’s CEO, Jon Letko, ... run is geared towards children of all ages; it is a non-competitive, non-timed event, ...
Breaking Medicine News(10 mins):
(Date:10/2/2017)... 2, 2017 The Rebound mobile app is poised ... reverse the tide of prescription drug addiction. The app empowers ... intake and stepping down their dosage in a safe, controlled ... December 2017; the first 100,000 people to sign up will ... http://www.rebound-solution.com/ ...
(Date:9/25/2017)... 25, 2017   Montrium , an industry ... today—from the IQPC Trial Master Files & Inspection ... that EastHORN Clinical Services has selected eTMF ... TMF management. EastHORN, a leading European contract research ... increase transparency to enable greater collaboration with sponsors, ...
(Date:9/19/2017)... 19, 2017 HistoSonics, Inc., a venture-backed medical device company developing a non-invasive, robotically ... announced three leadership team developments today:   ... ... Tom ... Veteran medical device executive Josh Stopek , PhD, who ...
Breaking Medicine Technology: