Pharmacy Law

/Pharmacy Law

Client Alert – Nationwide Dialysis Provider Settles Patient Privacy Breach Allegations for $3.5 Million

Late last week, Fresenius Medical Care (FMC), a dialysis provider with nationwide coverage that also operates a number of urgent care centers and labs, settled with the Department of Health and Human Services Office of Civil Rights (OCR) over a number of alleged patient privacy breaches that occurred in 2012. In addition to a payment [...]

Client Alert – Massachusetts’ New U.S. Attorney Vows to Continue Pressure on Drug Makers and Patient Assistance Programs

Readers may recall our alert from November 2017, “Patient Assistance Charity Loses Protection from Kickback Liability - Office of Inspector General Revokes Advisory Opinion” in which we relayed the story of Caring Voice Coalition (CVC), a patient assistance program formed to help patients afford expensive prescription drugs by funding health insurance copayments. CVC, like many [...]

Pharmaceutical Sales Rep Gets 65-Month Sentence in Fraud Scheme

Kirtis Green, a sales representative for Tennessee company Top Tier Medical, earned a 65 – month prison stint for his role in a $5 million health care fraud that saw several private health insurance companies, together with TriCare, duped into paying for medically unnecessary compounded creams. The charges against Green included Wire, Mail, and Health [...]

Client Alert – 2017 False Claims Act Enforcement Recovers $3.7 Billion

No Signs of a Slow Down in 2018 The 2017 fiscal year-end results are in and the U.S. Department of Justice (DOJ) has announced the recovery of $3.7 billion in settlements and judgments from civil cases involving fraud and false claims against the government. In a summary of 2017 enforcement activity, the DOJ year-end report [...]

Federal Prosecutors Given Green Light to Enforce Marijuana Laws following Long Hiatus under Obama Administration

The de facto federal safe harbor for the nation’s burgeoning marijuana industry may be coming to an end with the release yesterday of a memorandum from U.S. Attorney General Jeff Sessions notifying the nation’s 93 U.S. attorneys that prior Department of Justice guidance specific to marijuana enforcement had been rescinded.[i] The prior guidance documents, often [...]

Client Alert – False Claims Settlement Costs DaVita Rx $63.7 Million

Texas-based DaVita Rx (DaVita) has agreed to pay a total of $63.7 million to resolve allegations made in a whistleblower lawsuit together with separate issues raised in a self-disclosure by DaVita. Filed by two former DaVita Rx employees, the whistleblower suit alleged that the company billed federal healthcare programs for prescription medications that were never [...]

Client Alert – Alabama “Pill Mill” Indictments Handed Down – Physician and Three Nurse Practitioners Arrested

A Montgomery, Alabama, physician and three nurse practitioners were arrested yesterday following their indictment by a federal grand jury for their role in the operation of a pill mill run from the offices of Family Practice, a Montgomery-based medical clinic. The arrests follow last week’s guilty plea of Family Practice’s owner, Dr. Gilberto Sanchez, to [...]

Client Alert – Patient Assistance Charity Loses Protection from Kickback Liability Office of Inspector General Revokes Advisory Opinion

In an unprecedented action, the U.S. Department of Health and Human Services Office of Inspector General (OIG) has revoked an Advisory Opinion that protected a patient assistance charity from kickback liability, noting that it had failed “to fully, completely, and accurately disclose all relevant and material facts to OIG...” and had also failed to comply [...]

Client Alert – Eli Lilly, Express Scripts Subsidiary United BioSource and Three Other Companies Named in False Claims Act / Anti-Kickback Whistleblower Suit

A recently unsealed lawsuit in the U.S. District Court for the Eastern District of Texas names Eli Lilly and Company Inc. (Lilly) and United BioSource Corporation (UBC), a subsidiary of pharmacy benefit management giant Express Scripts Inc., among others, as the perpetrators of a multifaceted illicit marketing scheme designed to defraud government health care programs [...]

Client Alert – Medicare Fraud Strike Force Nabs Eight in $100 Million Compounding Scheme

Seven defendants have pleaded guilty to conspiracy to commit health care fraud and, while awaiting sentencing, have watched the government seize a number of expensive toys, including a 1936 Ford Deluxe, a 1964 Chevrolet Corvette convertible, a 1967 Chevrolet Camaro, a 1970 Chevrolet Monte Carlo and a 2008 Lamborghini convertible. Also recovered was a 50’ [...]