This blog is devoted to educating lawyers, investigators, and industry insiders about health care fraud.
Tuesday, December 21, 2010
Another large Qui Tam case settles - Dey Pharma agrees to pay $280 million
Dey pharmaceuticals company is paying the US government $280 million over charges that it reported false and inflated prices for drugs including Albuterol inhalers and other drugs including Cromolyn Sodium, and Ipratropium Bromide. This case involved marketing the "spread", or the difference between what Medicaid and Medicare will pay and a discounted price for health care providers. Dey was charged with offering the lower price to customers, but falsely reporting a higher sales price to the government.
Tony West, Assistant Attorney General for the Civil Division of the Department of Justice said “Taxpayer-funded kickback schemes like this not only cost federal health care programs millions of dollars, they threaten to undermine the integrity of the choices health care providers make for their patients.”