The Massachusetts attorney general joined that federal lawsuit accusing Johnson & Johnson of paying kickbacks to push the antipsychotic Risperdal and other drugs into nursing homes. AG Martha Coakley didn’t stop there; however, her office is also investigating other companies that market antipsychotics to nursing homes in the state.
TALK ABOUT death panels. The US attorney in Boston recently filed suit against the world’s largest maker of health products, Johnson & Johnson, for using kickbacks to get more nursing home patients onto its drugs, including one that was later found to be so lethal to the elderly it had to carry a black-box warning. The government’s complaint leaves little doubt that the drug company acted in a predatory way to increase sales and market share for its products, especially Risperdal, an antipsychotic often used to keep Alzheimer’s and dementia patients under control.
Federal prosecutors alleged that Johnson & Johnson paid one of the nation’s largest pharmacies serving nursing homes “tens of millions of dollars in kickbacks” to increase sales of drugs including blockbuster antipsychotic Risperdal.
The U.S. Justice Department said that Johnson & Johnson’s kickbacks to Omnicare, the largest U.S. provider of pharmacy services to nursing homes, took multiple forms, including rebates that were conditioned on Omnicare engaging in an ‘Active Intervention Program’ for Risperdal and payments disguised as data purchase fees, educational grants, and fees to attend Omnicare meetings.
Pfizer’s $2.3 billion health care fraud settlement with the government announced this month by the US Department of Justice adds some firsts to the world’s biggest pharmaceutical company. It covers Pfizer’s kickbacks to health care providers and false claims submitted to government health care programs, also known as our tax dollars, in violation of the Food, Drug and Cosmetic Act. Forty-three states will share in the “give backs.”