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:4/28/2017)... ... , ... Bill Howe started his sewer and drain company in 1980 focusing ... the team, the Bill Howe brand was born and they began cultivating their mission ... to the San Diego community in which they worked, lived and were raising their ...
(Date:4/28/2017)... ... April 28, 2017 , ... ... and advanced nutraceutical supplements, through its Nova Skin Sciences division, recently announced the ... of a moisturizer with the power of an anti-aging concentrate. , ...
(Date:4/27/2017)... PHILADELPHIA and DENVER (PRWEB) , ... April 27, ... ... Jewish Health, the nation’s leading respiratory hospital, based in Denver, Colorado, announced an ... Institute is enabled by the continuing support of the Jane and Leonard Korman ...
(Date:4/27/2017)... , ... April 27, 2017 , ... ... the 2017 North American CAREGiverSM of the Year for her extraordinary compassion and ... of its 60,000 North American professional caregivers for the prestigious award each year ...
(Date:4/27/2017)... Rosa, CA (PRWEB) , ... April 27, 2017 , ... ... Canales, MD , have been asked to present at the upcoming Aesthetic Meeting. Held ... from April 27-May 2. Drs. Furnas and Canales will lend their expertise to the ...
Breaking Medicine News(10 mins):
(Date:4/20/2017)... 2017 Research and Markets has announced ... Services Market Analysis By Service (Manufacturing, Research), By Country, (Brazil, ... 2025" report to their offering. ... The Latin American pharmaceutical contract manufacturing services ... Low drug registration cost in Latin American countries ...
(Date:4/19/2017)... 2017 The Mobile X-Ray product segment is the ... during the forecast period Mobile X-Ray segment is ... mobile X-Ray devices market, which is estimated to be valued ... a CAGR of 7% over the forecast period. Mobile X-Ray ... than US$ 100 Mn in 2017 over 2016. The segment,s ...
(Date:4/19/2017)... , April 19, 2017 Global Prostate ... report on the prostate cancer therapeutics market analyzes ... market. Increasing prevalence of prostate cancer, launch of ... the development of new drugs & therapeutic biological ... drug due to lesser side effects are some ...
Breaking Medicine Technology: