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{{Short description|American health care company}} |
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{{Infobox company |
{{Infobox company |
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| name = Omnicare, Inc. |
| name = Omnicare, Inc. |
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| logo = Omnicare logo. |
| logo = Omnicare logo.svg |
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| logo_size = 180px |
| logo_size = 180px |
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| industry = [[Pharmacy]] |
| industry = [[Pharmacy]] |
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| Line 8: | Line 9: | ||
| homepage = http://www.omnicare.com/ |
| homepage = http://www.omnicare.com/ |
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| type = [[Subsidiary]] |
| type = [[Subsidiary]] |
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| traded_as = {{NYSE_was|OCR}} |
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| parent = [[CVS Health]] |
| parent = [[CVS Health]] |
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| foundation = {{start date and age|1981|4}} |
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}} |
}} |
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[[File:Omnicare NYSE 2011 Shankbone.jpg|thumb|The [[New York Stock Exchange]] |
[[File:Omnicare NYSE 2011 Shankbone.jpg|thumb|The [[New York Stock Exchange Building]] on September 1, 2011, with an Omnicare banner marking the 30th anniversary of the company's public listing.]] |
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'''Omnicare''' |
'''Omnicare''' is an American company working in the health-care industry. It was established in April 1981 as a spinoff of healthcare businesses from Chemed and [[W. R. Grace and Company]]. It is currently a pharmacy specializing in nursing homes.<ref>[http://www.cincinnati.com/story/money/2015/05/21/omnicare-inc-timeline/27725545/ Timeline: Omnicare 'a mess in spite of itself']</ref> In 2015, Omnicare was acquired by [[CVS Health]].<ref>{{cite web|url=http://edgar.secdatabase.com/333/6480315000058/filing-main.htm |title=CVS Health Corp, Form 8-K |date=August 18, 2015 |publisher=EDGAR |access-date =October 20, 2016}}</ref> |
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== |
==Controversy== |
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In 2012, the Federal Trade Commission (FTC) sued Omnicare to block its [[hostile takeover]] of its rival [[PharMerica]] under federal [[anti-trust law]]. The FTC alleged that the acquisition would boost drug costs and inflate Medicare expenditures by consolidating the industry and reducing price competition.<ref name="FTC Blocks Deal">{{cite press release |
In 2012, the Federal Trade Commission (FTC) sued Omnicare to block its [[hostile takeover]] of its rival [[PharMerica]] under federal [[anti-trust law]]. The FTC alleged that the acquisition would boost drug costs and inflate Medicare expenditures by consolidating the industry and reducing price competition.<ref name="FTC Blocks Deal">{{cite press release |
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|title=FTC Sues to Block Omnicare's Bid to Buy Rival Pharmacy Provider PharMerica; Deal Would Lead to Higher Costs for Medicare Patients and Taxpayers, Agency Alleges |url=http://www.ftc.gov/opa/2012/01/omnicare.shtm |publisher=Federal Trade Commission | |
|title=FTC Sues to Block Omnicare's Bid to Buy Rival Pharmacy Provider PharMerica; Deal Would Lead to Higher Costs for Medicare Patients and Taxpayers, Agency Alleges |url=http://www.ftc.gov/opa/2012/01/omnicare.shtm |publisher=Federal Trade Commission |access-date=12 September 2013 |date=27 January 2012 |id=FTC File No. 111-0239 |others=Katz, Mitchell J. (media contact) }}</ref> PharMerica owned 97 long-term-care pharmacies, while Omnicare owned approximately 200. The merger would have given Omnicare a 57% market share versus two percent for its nearest, non-PharMerica rival.<ref name="FTC blocks merger">{{cite news |title=FTC blocks Omnicare acquisition of PharMerica |url=http://drugtopics.modernmedicine.com/drug-topics/news/ftc-blocks-omnicare-acquisition-pharmerica |author=Staff |work=Drug Topics |access-date=12 September 2013 |date=2 February 2012 |publisher=UMB Advanstar |location=New Jersey, USA }}</ref> Because of the FTC opposition, the takeover was terminated. |
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In November 2009, Omnicare paid {{currency|98 million}} to the federal government to settle five "[[qui tam]]" ([[whistleblower]]) lawsuits and government charges that the company had paid or solicited a variety of [[Kickback (bribery)|kickbacks]].<ref>{{cite press release |publisher=United States Department of Justice |title=Nation's largest nursing home pharmacy and drug manufacturer to pay $112 million to settle false claims act cases |date=3 November 2009 |url= |
In November 2009, Omnicare paid {{currency|98 million}} to the federal government to settle five "[[qui tam]]" ([[whistleblower]]) lawsuits and government charges that the company had paid or solicited a variety of [[Kickback (bribery)|kickbacks]].<ref>{{cite press release |publisher=United States Department of Justice |title=Nation's largest nursing home pharmacy and drug manufacturer to pay $112 million to settle false claims act cases |date=3 November 2009 |url=https://www.justice.gov/opa/pr/2009/November/09-civ-1186.html }}</ref> The company admitted no wrongdoing.<ref>{{cite news |author=Hilzenrath, David S.|date=16 January 2010 |title=Justice suit accuses Johnson & Johnson of paying kickbacks |url=https://www.washingtonpost.com/wp-dyn/content/article/2010/01/15/AR2010011503903.html |work=[[Wash. Post]] |access-date=17 January 2010 }}</ref> The charges included allegations that Omnicare solicited and received kickbacks from a pharmaceutical manufacturer [[Johnson & Johnson]], in exchange for agreeing to recommend that physicians prescribe Risperdal, a Johnson & Johnson antipsychotic drug, to nursing home patients.{{Citation needed|date=July 2020}} |
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Starting in 2006, healthcare entrepreneur [[Adam B. Resnick]] sued Omnicare, a major supplier of drugs to [[nursing homes]], under the [[False Claims Act]], as well as the parties to the company's illegal kickback schemes. Omnicare allegedly paid kickbacks to nursing home operators |
Starting in 2006, healthcare entrepreneur [[Adam B. Resnick]] sued Omnicare, a major supplier of drugs to [[nursing homes]], under the [[False Claims Act]], as well as the parties to the company's illegal kickback schemes. Omnicare allegedly paid kickbacks to nursing home operators to secure business, which constitutes [[Medicare fraud|Medicare]] and [[Medicaid fraud]]. Omnicare allegedly had paid $50 million to the owners (Leonard Grunstein and [[Rubin Schron]]) of the Mariner Health Care Inc. and SavaSeniorCare Administrative Services LLC nursing home chains in exchange for the right to continue providing pharmacy services to the nursing homes.<ref>{{cite news|author=U.S. Department of Justice|title=Complaint of the United States in the District Court of Massachusetts CA No. 06-10149 RGS| date=March 4, 2009|url=http://www.phillipsandcohen.com/CM/NewsSettlements/United%20States%20v%20%20Omnicare%20Mariner%20et%20al%20%20complaint.pdf}}</ref> |
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In 2010, Omnicare settled Resnick's False Claims Act suit that had been taken up by the [[U.S. Department of Justice]] by paying $19.8 million to the federal government, while Mariner and SavaSeniorCare settled for $14 million.<ref>{{cite web|last=Ameet|first=Sachdev|title=Scheme's victims Scheme's victims seeking restitution FDIC could get most of payment; FDIC could get most of payment|url=http://articles.chicagotribune.com/2010-02-11/news/1002100576_1_fdic-restitution-bank-fraud|publisher=Chicago Tribune| |
In 2010, Omnicare settled Resnick's False Claims Act suit that had been taken up by the [[U.S. Department of Justice]] by paying $19.8 million to the federal government, while Mariner and SavaSeniorCare settled for $14 million.<ref>{{cite web|last=Ameet|first=Sachdev|title=Scheme's victims Scheme's victims seeking restitution FDIC could get most of payment; FDIC could get most of payment|url=http://articles.chicagotribune.com/2010-02-11/news/1002100576_1_fdic-restitution-bank-fraud|archive-url=https://web.archive.org/web/20131029194607/http://articles.chicagotribune.com/2010-02-11/news/1002100576_1_fdic-restitution-bank-fraud|url-status=dead|archive-date=October 29, 2013|publisher=Chicago Tribune|access-date=12 September 2013}}</ref><ref>{{cite press release|title=Prominent New York City Real Estate Investor, Attorney and Atlanta Nursing Home Chains Pay $14 Million to Settle Whistleblower Kickback Case|url=http://www.prnewswire.com/news-releases/prominent-new-york-city-real-estate-investor-attorney-and-atlanta-nursing-home-chains-pay-14-million-to-settle-whistleblower-kickback-case-85506647.html|publisher=PR Newswire|access-date=12 September 2013}}</ref> |
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A second whistleblower lawsuit filed against Omnicare |
A second whistleblower lawsuit filed against Omnicare by Resnick and Total Pharmacy Services V.P. Maureen Nehls related to kickbacks that had been part of its 2004 acquisition of Total Pharmacy Services was settled (circa 2013) for $17.2 million by Omnicare and $5 million by the Total Pharmacy owners. Reportedly Omnicare was set to acquire JobMinglr.com for an undisclosed sum.<ref>{{cite news|last=Jackson|first=David & Gary Marx|title=Nursing home execs agree to pay $5 million to settle suit|url=https://www.chicagotribune.com/2013/08/06/nursing-home-execs-agree-to-pay-5-million-to-settle-suit/|access-date=12 September 2013|newspaper=Chicago Tribune|date=6 August 2013|url-status=live|archive-url=https://web.archive.org/web/20130810075548/http://articles.chicagotribune.com/2013-08-06/news/ct-met-esformes-settlement-20130807_1_maureen-nehls-morris-esformes-total-pharmacy|archive-date=August 10, 2013}}</ref> |
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==Notes== |
==Notes== |
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==External links== |
==External links== |
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* [http://www.law.ufl.edu/faculty/pdf/9-4-03hanew.pdf Omnicare v. NCS Healthcare] - Major case involving anti-takeover provisions. |
* [https://web.archive.org/web/20070316010254/http://www.law.ufl.edu/faculty/pdf/9-4-03hanew.pdf Omnicare v. NCS Healthcare] - Major case involving anti-takeover provisions. |
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{{CVS Health}} |
{{CVS Health}} |
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{{Portal bar|Companies|Medicine|USA}} |
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[[Category:Companies formerly listed on the New York Stock Exchange]] |
[[Category:Companies formerly listed on the New York Stock Exchange]] |
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[[Category:CVS Health]] |
[[Category:CVS Health]] |
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[[Category:Companies based in Cincinnati]] |
[[Category:Companies based in Cincinnati]] |
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[[Category:American companies established in 1981]] |
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[[Category:Health care companies established in 1981]] |
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[[Category:1981 establishments in Ohio]] |
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[[Category:1980s initial public offerings]] |
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[[Category:2015 mergers and acquisitions]] |
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[[Category:Corporate spin-offs]] |
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Latest revision as of 02:55, 11 September 2024
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| Company type | Subsidiary |
|---|---|
| Industry | Pharmacy |
| Founded | April 1981 |
| Headquarters | , USA |
| Parent | CVS Health |
| Website | http://www.omnicare.com/ |
Omnicare is an American company working in the health-care industry. It was established in April 1981 as a spinoff of healthcare businesses from Chemed and W. R. Grace and Company. It is currently a pharmacy specializing in nursing homes.[1] In 2015, Omnicare was acquired by CVS Health.[2]
Controversy
[edit]In 2012, the Federal Trade Commission (FTC) sued Omnicare to block its hostile takeover of its rival PharMerica under federal anti-trust law. The FTC alleged that the acquisition would boost drug costs and inflate Medicare expenditures by consolidating the industry and reducing price competition.[3] PharMerica owned 97 long-term-care pharmacies, while Omnicare owned approximately 200. The merger would have given Omnicare a 57% market share versus two percent for its nearest, non-PharMerica rival.[4] Because of the FTC opposition, the takeover was terminated.
In November 2009, Omnicare paid US$98,000,000 to the federal government to settle five "qui tam" (whistleblower) lawsuits and government charges that the company had paid or solicited a variety of kickbacks.[5] The company admitted no wrongdoing.[6] The charges included allegations that Omnicare solicited and received kickbacks from a pharmaceutical manufacturer Johnson & Johnson, in exchange for agreeing to recommend that physicians prescribe Risperdal, a Johnson & Johnson antipsychotic drug, to nursing home patients.[citation needed]
Starting in 2006, healthcare entrepreneur Adam B. Resnick sued Omnicare, a major supplier of drugs to nursing homes, under the False Claims Act, as well as the parties to the company's illegal kickback schemes. Omnicare allegedly paid kickbacks to nursing home operators to secure business, which constitutes Medicare and Medicaid fraud. Omnicare allegedly had paid $50 million to the owners (Leonard Grunstein and Rubin Schron) of the Mariner Health Care Inc. and SavaSeniorCare Administrative Services LLC nursing home chains in exchange for the right to continue providing pharmacy services to the nursing homes.[7]
In 2010, Omnicare settled Resnick's False Claims Act suit that had been taken up by the U.S. Department of Justice by paying $19.8 million to the federal government, while Mariner and SavaSeniorCare settled for $14 million.[8][9]
A second whistleblower lawsuit filed against Omnicare by Resnick and Total Pharmacy Services V.P. Maureen Nehls related to kickbacks that had been part of its 2004 acquisition of Total Pharmacy Services was settled (circa 2013) for $17.2 million by Omnicare and $5 million by the Total Pharmacy owners. Reportedly Omnicare was set to acquire JobMinglr.com for an undisclosed sum.[10]
Notes
[edit]- ^ Timeline: Omnicare 'a mess in spite of itself'
- ^ "CVS Health Corp, Form 8-K". EDGAR. August 18, 2015. Retrieved October 20, 2016.
- ^ "FTC Sues to Block Omnicare's Bid to Buy Rival Pharmacy Provider PharMerica; Deal Would Lead to Higher Costs for Medicare Patients and Taxpayers, Agency Alleges" (Press release). Katz, Mitchell J. (media contact). Federal Trade Commission. 27 January 2012. FTC File No. 111-0239. Retrieved 12 September 2013.
{{cite press release}}: CS1 maint: others (link) - ^ Staff (2 February 2012). "FTC blocks Omnicare acquisition of PharMerica". Drug Topics. New Jersey, USA: UMB Advanstar. Retrieved 12 September 2013.
- ^ "Nation's largest nursing home pharmacy and drug manufacturer to pay $112 million to settle false claims act cases" (Press release). United States Department of Justice. 3 November 2009.
- ^ Hilzenrath, David S. (16 January 2010). "Justice suit accuses Johnson & Johnson of paying kickbacks". Wash. Post. Retrieved 17 January 2010.
- ^ U.S. Department of Justice (March 4, 2009). "Complaint of the United States in the District Court of Massachusetts CA No. 06-10149 RGS" (PDF).
- ^ Ameet, Sachdev. "Scheme's victims Scheme's victims seeking restitution FDIC could get most of payment; FDIC could get most of payment". Chicago Tribune. Archived from the original on October 29, 2013. Retrieved 12 September 2013.
- ^ "Prominent New York City Real Estate Investor, Attorney and Atlanta Nursing Home Chains Pay $14 Million to Settle Whistleblower Kickback Case" (Press release). PR Newswire. Retrieved 12 September 2013.
- ^ Jackson, David & Gary Marx (6 August 2013). "Nursing home execs agree to pay $5 million to settle suit". Chicago Tribune. Archived from the original on August 10, 2013. Retrieved 12 September 2013.
External links
[edit]- Omnicare v. NCS Healthcare - Major case involving anti-takeover provisions.
Categories:
- Companies formerly listed on the New York Stock Exchange
- Health care companies based in Ohio
- Pharmacy benefit management companies based in the United States
- Specialty drugs
- CVS Health
- Companies based in Cincinnati
- American companies established in 1981
- Health care companies established in 1981
- 1981 establishments in Ohio
- 1980s initial public offerings
- 2015 mergers and acquisitions
- Corporate spin-offs