Friday, August 08, 2014
McKesson to Pay $18 Million for Poor Vaccine Shipping Controls
McKesson Corporation agreed to pay $18 million to settle allegations that it shipped vaccines for the CDC without proper temperature controls. McKesson has a contract with the CDC to ship vaccines that the agency purchases from vaccine manufacturers to health care providers. Although the shipments were supposed to be electronically monitored to ensure that the temperature stayed within a specified range, McKesson failed to properly set the monitors. The DOJ emphasized that the failure to adhere to such terms “not only hurts taxpayers but also could jeopardize the integrity of products, like vaccines, that Americans count on to be safe.” The CDC, however, assured the public that vaccines, like those shipped by McKesson, are protected by multiple, redundant measures to ensure their safety and efficacy.
The case was initiated by Terrell Fox, a former finance director at McKesson Specialty Distribution LLC. Mr. Fox will receive a portion of the settlement as an award for bringing the case to the government’s attention.
Read the entire DOJ press release, “McKesson Corp. to Pay $18 Million to Resolve False Claims Allegations Related to Shipping Services Provided Under Centers for Disease Control Vaccine Distribution Contract"
Posted by eithurburn on 08/08 at 03:21 PM
Monday, August 04, 2014
Community Health Systems to Pay $98.15 Million to Settle 7 FCA Cases
Community Health Systems Inc. (CHS) has agreed to pay $89.15 million to settle allegations that its hospitals unnecessarily admitted patients in order to take advantage of more generous inpatient billing rates. The settlement resolves allegations brought in seven separate False Claims Act lawsuits which were initiated by several whistleblowers, including a former Director of Health Information Systems, an EMS coordinator, and multiple nurses and emergency room physicians. The whistelblowers, who worked together to aid the government’s investigation, will receive a portion of the government’s recovery.
CHS has also agreed to pay $9 million to resolve allegations related to Laredo Medical Center, one of its affilated hospitals. In addition to allegedly engaging in unnecessary outpatient admissions, LMC is also alleged to have violated the Stark law in connection with a physician who was offered a medical directorship position at the hospital.
Read the DOJ press release, “Community Health Systems Inc. to Pay $98.15 Million to Resolve False Claims Act Allegations"
Read the Corporate Crime Reporter article, “Community Health Systems Inc. to Pay $97 Million to Settle False Claims Act Charge"
Posted by eithurburn on 08/04 at 11:00 AM
Friday, August 01, 2014
HP to Pay $32.5 Million for Overcharging Post Office
Hewlett-Packard agreed to pay $32.5 million to settle allegations that the company charged the U.S. Postal Service more than was agreed upon in their contract. Under HP’s contract with the USPS, HP was obligated to give the USPS the lowest price given to comparable customers. HP allegedly failed to give the USPS the benefit of such prices, leading them to overcharge the Postal Service from 2001 to 2010.
Read the entire press release, “Hewlett-Packard Company Agrees to Pay $32.5 Million for Alleged Overbilling of the U.S. Postal Service"
Posted by eithurburn on 08/01 at 12:00 PM
Wednesday, July 30, 2014
Brooklyn Plaza Medical Center to Pay $600,000
Brooklyn Plaza Medical Center has agreed to pay $600,000 to New York State to settle allegations that it operated an uncertified satellite facility and fraudulently billed New York Medicaid. According to the NY Attorney General’s Office, Whitman Ingersoll Farragut Health Center, a satellite facility of Brooklyn Plaza Medical Center, did not have an operating certificate. In order to obtain reimbursement for services provided at the Whitman Ingersoll Farragut, claims allegedly were routed through Brooklyn Plaza Medical Center and billed as if services had been provided by that facility. The allegations were brought to the Attorney General’s attention through a whistleblower lawsuit filed in federal court in 2010.
Read the NY AG’s press release, “A.G. Schneiderman Announces Settlement With Brooklyn Medical Center That Ran Satellite Facility Without An Operating Certificate"
Posted by eithurburn on 07/30 at 11:41 AM
Tuesday, July 22, 2014
DOJ Intervenes in Whistleblower Lawsuit against Symantec Corporation
The Department of Justice announced it will intervene in a whistleblower lawsuit against Symantec Corporation, a Fortune 500 company, relating to a General Services Administration (GSA) contract signed by the company in 2007 to sell computer software products directly to federal purchasers.
The case alleges that Symantec Corp. knowingly made misrepresentations about its business practices by giving incomplete and inaccurate information about the prices it was offering to commercial customers. This information was then used by the GSA to negotiate the minimum discounts that Symantec was required to provide to its government customers. The suit claims that Symantec’s misrepresentations about its true commercial sales practices ultimately caused government purchasers to receive discounts far inferior to those given to Symantec’s commercial customers. The GSA contract was in place from 2007 to 2012 and involved hundreds of millions of dollars in sales.
Read the entire press release, “United States Intervenes in Whistleblower Suit Against Symantec Corporation"
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Posted by eithurburn on 07/22 at 10:36 AM