False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG November 23, 2004
		Sign Up for this FREE Newsletter n Web Site n About TAF-EF n The False Claims Act n Previous newsletters n Email editor Please take a moment to forward this FREE electronic newsletter to others that might be interested!	Gambro Gets Subpoena Gambro Healthcare Inc. is the 6th kidney dialysis firm to get a subpoena relating to parathyroid hormone and Vitamin D supplements. Gambro runs 530 kidney dialysis clinics in 32 states, and settled an earlier FCA suite for $53 million, and the DoJ will be announcing a $350 million settlement with the company later this year.  About 400,000 Americans are on dialysis, and about 80% of the industry is now under investigation for fraud. >> To read more
			McKesson Pays $7.4 M McKesson's TBC Products unit has pled guilty to federal fraud charges stemming from an undercover Medicare investigation in southern Illinois. The settlement includes a $3.4 million settlement under the False Claims Act, and a $4 million criminal penalty. TBC Products gave clients invoices that made it look like McKesson was charging for tube-feeding pumps that were free. This paperwork made it possible for nursing homes to bill taxpayers for the free pumps. >> To read more
			Custer Battles Case on NPR The Custer-Battles fraud case was recently featured on National Public Radio's "Morning Edition". Among those interviewed were the relators in the case, attorneys representing both the whistleblowers and Custer Battles, and a representative from TAF. To hear the interview on your computer >> click here. For a transript >> click here.
			Ohio Sues Drug Co. For Fraud The Attorney General of Ohio has filed suit against Roxane Laboratories for violating Medicaid "best price" rules. Similar lawsuits have already been filed by the states of Florida and California against Dey Corp., Schering-Plough, Abbott Laboratories, Pharmacia Corp. and Warrick Pharmaceuticals. In one case cited in the lawsuit, a drug used to treat respiratory infections was billed to Medicaid at a price of 47 cents per unit, when the same product was sold at wholesale for approximately 11 cents per unit. >> To read more
			Merck Medco & Vioxx In April Medco settled charges of postal fraud and violations of consumer protection laws, agreeing to pay $29.3 million to 20 states.  The chief charge: Medco was switching drugs without doctor authorization. One of the drugs commonly switched was the arthritis medication Celebrex, which was switched to Merck's Vioxx. At the time Merck owned Medco. It now appears Merck knew there were possible health risks with Vioxx. An internal FDA memo has estimated that Vioxx has been associated with more than 27,000 heart attacks or deaths.   Wall Street is putting Merck's potential Vioxx liability at more than $10 billion. >> To read more
			Doctors Under the Influence An excellent article in Technology Review suggests that "Too many doctors write prescriptions while under the influence of drug companies. ... Aggressive (and highly publicized) prosecution of the most egregious cases could help expose practices that are neither ethical nor legal, and might lead to even more aggressive self-regulation, to the benefit of patients and their trust in the doctors who treat them. A few good physician perp walks could help clean out the bad apples ...." >> To read more