Cardinal Health Paying $13 Million for Kickback Scheme
The Department of Justice says Ohio-based Cardinal Health has agreed to pay $13,125,000 to resolve whistleblower allegations that it violated the False Claims Act by paying “upfront discounts” to physician customers in violation of the Anti-kickback law. The department says the HHS Inspector General has advised that upfront discount arrangements present significant kickback concerns unless they are tied to specific purchases and that distributors maintain appropriate controls to ensure that discounts are clawed back if the purchaser ultimately does not purchase enough product to earn the discount.
According to the facts acknowledged by Cardinal in its settlement agreement, the company failed to meet the requirements because the upfront discounts it provided to customers were not attributable to identifiable sales or were purported rebates that the company’s customers had not earned.
The department says the whistleblowers in the case will receive about $2.6 million of the recovery.