tci Medicare Compliance & Reimbursement - 2004 Issue 35

Enforcement Watch: Pharmacy Takes Cover In Recycled Drug Loophole

Court says 'disturbing' lack of legal authority proved fatal to lawsuit.A federal appeals court let a New Jersey provider-pharmacy off the hook Sept. 1 - but not without some strong misgivings.Whistleblower Thomas Quinn, the former regional comptroller for Omnicare subsidiary Pompton Nursing Home Suppliers, brought the false-claims action. When medications were returned for resale, Quinn alleged, the pharmacy routinely credited Medicaid with only 50% of what Medicaid had originally paid the pharmacy. Then, Pompton pocketed the remaining money to cover the "expenses of restocking and redispensing," according to court documents. However, the court said that...

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