McKesson may settle drug pricing suit
Pharma Compliance Alert, July 2, 2008
A pair of rulings in Boston may push McKesson Corp. to settle a suit centered on allegations the company inflated prices on prescription drugs paid by private health-benefit plans and individuals, according to a Bloomberg article.
In 2005, New England Carpenters Health Benefits Fund and other plaintiffs accused McKesson and Hearst Corp.’s First DataBank of conspiring to increase pharmacies’ profits to increase the wholesaler’s share of the business.
U.S. District Judge Patti Saris in Boston certified the suit as class action. The cases are being tried under the Racketeer Influenced and Corrupt Organizations Act (RICO), which provides for triple damages. Because of those rulings, McKesson may settle the claims for as much as $15 billion.
In addition to the class action suit filed in 2005, McKesson faces additional suits filed by state and local governments. All of the suits accuse McKesson and First DataBank of secretly manipulating an industry-wide pricing system based on published average wholesale prices.
Comments
0 comments on “McKesson may settle drug pricing suit ”
Related Products
-
ePharm5 InDepth
EPharm5 e-mail newsletter delivers the top 5 developments in pharma business innovation, with original research, interviews...
-
Big Pharma Performance Before, During and Beyond the Global Recession
This report assesses the performance of the leading 15 pharmaceutical companies up to, during and beyond the recent global...
Most Popular
- Articles
-
- Q/A: Volume requirement for reporting hydration services
- Featured blog post: Nurses face felony charges after reporting physician to the Texas Medical Board
- Catch up on what's new with injections and infusions
- Topic: CMS, OESS post new security compliance review information, checklist
- What does case-mix index mean to you?
- Capturing all necessary codes for IUD insertion and removal can be challenging
- QA:Coding multiple initial infusions
- News and briefs: Oklahoma Osteopathic Association against residency bill change
- OB services: Coding inside and outside of the package
- HIPAA Q&A: Level of encryption needed for email
- E-mailed
-
- Q/A: Volume requirement for reporting hydration services
- Featured blog post: Nurses face felony charges after reporting physician to the Texas Medical Board
- Catch up on what's new with injections and infusions
- New conflicts of interest create new challenges
- Q&A tackles coding questions about injections and infusions
- Joint Commission Center announces handoff communication solutions
- Inside best practice: Reduce patient falls with a stoplight
- Identify modifiable risk factors to prevent patient falls
- Hospitalist-surgeon comanagement has no effect on outcomes
- Case Management Monthly, June 2012
- Searched