McKnight’s reported that Omnicare has once again been accused of kickbacks. U.S. District Court Judge Robert M. Dow Jr. recently ruled a whistleblower can pursue allegations that long-term care pharmacy Omnicare funneled payments to nursing home owners through so-called charitable donations. Alan J. Litwiller, an Omnicare employee, filed the False Claims Act lawsuit in 2011. Among various charges, he said that a top Omnicare executive in Illinois directed the company’s nonprofit arm — the Omnicare Foundation — to make “indirect payments” to owners of client nursing homes, disguised as charitable contributions.
Other credible allegations include Omnicare giving illegal discounts and refunds to long-term care providers. A separate suit filed by whistleblower Susan Ruscher had accused the pharmacy of other infractions — namely, purposely failing to collect on certain bills to induce nursing homes to retain their business.