Omnicare wins $300M alleged fraud case

A judge ruled last week that a former Omnicare employee didn't have enough evidence to affirm fraud accusations against the company, according to the court ruling. Omnicare is the nation's largest long-term care (LTC) pharmacy that provides prescription and non-prescription drugs to skilled nursing facilities (SNF) and other LTC organizations. 

According to the ruling, Omnicare had significant past-due accounts receivable balances from eight of the SNFs with which it had preferred provider agreements, totaling $300 million by the end of 2008. The lawsuit was born after Omnicare forgave the debts owed: "Omnicare had an intentional scheme to avoid collecting… in order to maintain its preferred provider relationships with SNFs and to continue servicing the SNFs'… patients."

Omnicare says the mounting accounts receivable was due to errors in its billing processes, audits and disputes with SNFs about pricing.

Read more about the lawsuit here.

Megan Combs

Megan Combs was Associate Editor of I Advance Senior Care / Long Term Living from 2013-2018.