Maryland-based pharmacy settles False Claims Act allegations for $5.3 million

Remedi SeniorCare Holding Corp., headquartered in Towson, Maryland, has agreed to pay more than $5.3 million to resolve allegations that it violated the False Claims Act by billing Medicare and Medicaid for prescription drugs dispensed without valid prescriptions, the Justice Department announced. The settlement is based on Remedi’s ability to pay and will be paid over time.

The government alleged that from Jan. 1, 2015, through March 31, 2021, Remedi submitted false claims to Medicare and Medicaid for prescription drugs dispensed without valid prescriptions to residents of assisted living facilities in various states.

Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division said the resolution demonstrates the department’s commitment to protecting vulnerable populations and holding pharmacies accountable when they fail to meet their obligations under the False Claims Act.

U.S. Attorney Dominick S. Gerace II for the Southern District of Ohio said billing Medicare and Medicaid for prescription drugs without valid prescriptions is unlawful and can present serious risks. He said his office would continue enforcing the False Claims Act against those who improperly bill federal programs.

Acting Deputy Inspector General for Investigations Miranda L. Bennett of the Department of Health and Human Services Office of Inspector General said billing the programs for drugs dispensed without valid prescriptions puts assisted living residents at risk and undermines safeguards intended to protect patients and federal health care programs.

The settlement resolves claims brought under the False Claims Act’s whistleblower, or qui tam, provisions by Maureen Gearhart and Laura Griffieth, both former Remedi employees. Those provisions allow private parties to file lawsuits on behalf of the United States and receive a portion of any recovery. The case is captioned United States ex rel. Gearhart & Griffieth v. Remedi SeniorCare Holding Corp., et al., No. 1:20cv970, in the U.S. District Court for the Southern District of Ohio. The whistleblowers will receive a share of the settlement payments as they are made, the department said.

The resolution resulted from a coordinated effort by the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Southern District of Ohio, with assistance from HHS-OIG and the Ohio Attorney General’s Office. Fraud Section Senior Litigation Counsel Laurie A. Oberembt and Assistant U.S. Attorney Brandi Stewart handled the matter.

The claims resolved by the settlement are allegations only, and there has been no determination of liability against Remedi.