Friday, December 4, 2009

Drugmakers' Payments Draw Heat

http://www.businessweek.com/bwdaily/dnflash/content/nov2009/db2009114_700374.htm

What exactly is the point of the probe? The collection of payoff fees to the coffer?
Because it sure wasn't to hold someone criminally responsible for medicaid fraud.
Big boys never go to prision for crimes committed against "the system" or "The People"

A $112 million settlement involving alleged drug kickbacks that the Justice Dept. announced with the nation's largest nursing home pharmacy and a generic drug manufacturer on Nov. 3 is part of a wide-ranging investigation of suspected Medicaid fraud by the pharmaceutical industry. Critics say the continuing probe, which involves Johnson & Johnson (JNJ) and other major drugmakers, highlights what they describe as an industry practice of paying money to outfits that provide drugs to consumers, in return for preferential treatment.

Because those alleged payoffs have the effect of compromising patient care and driving up costs for government and private health insurers, cases like the settlement unsealed with Omnicare (OCR) in Covington, Ky., and IVAX Pharmaceuticals in Weston, Fla., could bolster opposition to the controversial deal the Obama Administration reached with the pharmaceutical industry to win its support for health-reform legislation




No Admission of Wrongdoing
Omnicare and IVAX entered "corporate integrity agreements" to establish new training and policies to prevent future problems. Neither company admitted any wrongdoing. An Omnicare spokesman said the company agreed to settle the matter "to avoid expensive and time-consuming litigation" and "to focus on its mission of providing high-quality pharmaceutical care for the frail elderly