Two nursing home chains pay $14 million to settle kickback probe
Contemporary Long-Term Care Weekly, March 4, 2010
The Justice Department recently announced that Atlanta-based Mariner Health Care Inc., subsidiary SavaSeniorCare Administrative Services LLC, and their principals will pay the federal government and several states $14 million to settle kickback allegations, HealthLeaders Media reports.
Federal prosecutors alleged that the defendants solicited kickback payments from pharmacy giant Omnicare in exchange for agreements by Mariner and Sava to continue using Omnicare's pharmacy services for 15 years. In November, the federal government, a number of states, and Omnicare entered into a $98 million settlement that resolved Omnicare’s civil liability in the investigation, according to the Justice Department. Approximately $7.84 million of the settlement will go to the federal government, while $6.16 million has been allocated to several state Medicaid programs that the federal government did not identify.
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