Physician Law Blog

False Claims Act (FCA) allegations are serious business. Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs. Omnicare learned the hard way just how serious FCA actions can be when a whistleblower made allegations against it.

Just ask Cornell Prescription Pharmacy about disposal of unshredded paper pharmacy records containing protected health information (PHI), and you will hear that this pharmacy paid $125,000 plus it has entered a Resolution Agreement with the OCR. Not only is this pharmacy paying a significant penalty, it will be under a corrective action plan to correct deficiencies in their HIPAA compliance program and must submit the members of their workforce to receive training on that program within 30 days of implementing the policies and procedures.