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4th patient charity settles Medicare kickback allegations

Maia Anderson – Friday, January 24th, 2020 Print  | Email

A fourth patient charity agreed to pay $3 million to settle claims it enabled drugmakers to pay kickbacks to Medicare patients who used their drugs, STAT reported. 
Three other patient charities have settled similar cases since last October, when federal authorities accused drugmakers and patient charities of creating programs to favor some drugs over lower-cost options to boost profits. 
The U.S. Justice Department said the fourth charity, called Patient Services, created a fund for patients with a disease called homozygous familial hypercholesterolemia after being asked to do so by Aegerion Pharmaceuticals, STAT reported. The fund was only supported by Aegerion and allowed the drugmaker to boost its sales. 
The Patient Services case differs from the other three because the charity filed a lawsuit in 2018 accusing the government of inhibiting its free speech rights by limiting the information it was allowed to provide to donors. 
Read the full article here. 
More articles on pharmacy:BCBS, Civica Rx create subsidiary to cut generic drug costsPhRMA spent a record $29M on lobbying in 2019Former Insys CEO gets 30 months in prison

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McKesson OKs $175M settlement of claims it failed to monitor opioid shipments

Maia Anderson – Friday, January 24th, 2020 Print  | Email

McKesson’s board agreed to pay $175 million to settle accusations from the company’s investors that directors ignored suspicious opioid shipments, Bloomberg reported. 
As part of the settlement, McKesson must add two independent directors to its board, increase compliance training for directors and improve its system to flag suspicious orders.  
McKesson also agreed to separate the role of CEO and board chairman to increase governance protections. 
The settlement included no admission of wrongdoing, though the judge said the investors had raised legitimate questions of whether the directors ignored red flags about opioid shipments, according to Bloomberg. 
McKesson still faces thousands of other lawsuits related to the opioid crisis. 
Read the full article here. 
More articles on pharmacy:BCBS, Civica Rx create subsidiary to cut generic drug costsPhRMA spent a record $29M on lobbying in 2019Former Insys CEO gets 30 months in prison

© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.
To receive the latest hospital and health system business and legal news and analysis from Becker’s Hospital Review, sign-up for the free Becker’s Hospital Review E-weekly by clicking here.

Read More