Omnicare (NYSE: OCR) is a Fortune 500 company based in Covington, Kentucky. Omnicare functions primarily as a provider of pharmaceuticals, related consulting and data management services. As of December 31, 2009 the company provided its pharmacy services to skilled nursing, assisted living, and other healthcare facilities comprising approximately 1.4 million beds in 47 U.S. states, the District of Columbia and Canada. Omnicare’s contract research organization provides product development and research services for the pharmaceutical, biotechnology, nutraceutical, medical devices and diagnostic industries in 31 countries worldwide. Names John Figueroa chief executive officer, board member
Appointment effective Jan 1, to replace James Shelton
Dec 8 2010 (Reuters) - Pharmacy services provider Omnicare Inc (OCR.N) named industry veteran John Figueroa as its new chief executive officer, effective Jan 1.
Figueroa, with more than 20 years of experience in the healthcare industry, most recently served as president of the U.S. pharmaceutical group at McKesson Corp (MCK.N).
Figueroa will replace James Shelton, who was appointed as an interim CEO in August after the company's longtime CEO resigned unexpectedly.
Shelton will remain with Omnicare as the new non-executive chairman of its board and assist Figueroa during the transition period.
Omnicare's shares which have gained about 10 percent in the last three months closed at $23 Tuesday on the New York Stock Exchange. (Reporting by Krishnakali Sengupta in Bangalore; Editing by Jarshad Kakkrakandy)
In November 2009, Omnicare paid $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 kickbacks. [1] The company admitted no wrongdoing.[2] The charges included allegations that Omicare 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. The settlement also covered a whistleblower lawsuit that alleged that Omnicare paid $50 million to the owners 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.
Omnicare Inc., the nation's largest nursing home pharmacy, conceded in a settlement with the U.S. Department of Justice (DOJ) to pay $98 million to resolve allegations that the company engaged in several kickback schemes. Approximately $68.5 million of the settlement proceeds will go to the United States, while $43.5 million has been allocated to cover Medicaid program claims by participating states.
According to the DOJ, Omnicare allegedly solicited and received kickbacks from pharmaceutical manufacturer Johnson & Johnson (J&J) in exchange for agreeing to recommend that physicians prescribe Risperdal, a J&J antipsychotic drug, to nursing home patients. J&J's kickbacks to Omnicare 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.
Also, Omnicare regularly paid kickbacks to nursing homes by providing consultant pharmacist services at rates below the company's cost-and below fair market value for such services-in order to induce the homes to refer their patients to Omnicare for pharmacy services, the government alleged.
“These defendants broke the law to take advantage of our nation's most vulnerable citizens-the elderly and the poor,” said Tony West, assistant attorney general for the Civil Division of the Department of Justice.
In addition to these allegations, the government filed a complaint against two Atlanta-based nursing home chains, Mariner Health Care Inc. and SavaSeniorCare Administrative Services LLC, for accepting a kickback from Omnicare in return for pharmacy services contracts.
The DOJ said Omnicare paid a $50 million kickback to the chains, which was disguised as a purchase of a small business unit of Mariner that had only two employees and was worth far less than the money offered.
On the same day that Omnicare allegedly paid Mariner $50 million for this business unit-which had only $2 million to $3 million in assets-Mariner signed a 15-year contract with Omnicare to refer all of its nursing home patients to Omnicare for the patients' drug purchases, including those covered by Medicare and Medicaid.
The Washington Post reported OmniCare's profits soared because of recent settlements for kickbacks decreased their anticipated legal defense costs. Omnicare Inc., which dispenses drugs to nursing homes and long-term care facilities, said its profit almost tripled in the fourth quarter after it resolved allegations it paid kickbacks to nursing homes, and received money for buying and recommending drugs.
In June, Omnicare agreed to pay $98 million to settle the investigation. The terms were completed in November. The Justice Department said Omnicare paid $50 million to Mariner and Sava Senior Care owner/operators Murray Forman, Leonard Grunstein, and Rubin Schron to gain their business, while also asking for and getting kickbacks from two drug companies for recommending their products.
In the fourth quarter, the company said its profit rose to $80 million, or 68 cents per share, from $27.6 million, or 24 cents per share, a year earlier. Omnicare said it earned 74 cents per share from continuing operations, but that includes a tax benefit of 11 cents per share. Its revenue fell 2 percent to $1.54 billion from $1.57 billion
Analysts expected a profit of 63 cents per share and $1.55 billion in revenue, according to a Thomson Reuters survey.
The company reported a total of $5.7 million in pretax litigation costs in its latest quarter, compared to $48.1 million pretax a year ago.
Omnicare said its pharmacy services revenue fell 1 percent to $1.51 billion from $1.53 billion. The decline came from greater use of low-cost generic drugs, smaller reimbursement payments for certain drugs, and a decrease in the amount of beds served. The company said it did more business with assisted living facilities, which typically don't buy as many drugs as acute care centers or other facilities it does business with.
Revenue from Omnicare's clinical research business slipped to $34.3 million from $49.1 million.
In 2009, Omnicare said its profit jumped 51 percent to $211.9 million, or $1.80 per share, from $140.5 million, or $1.19 per share. Revenue decreased less than 1 percent to $6.17 billion from $6.21 billion.
The settlement is the result of a whistleblower case filed in Chicago in 2003 by a former Omnicare financial analyst. In one instance, the whistleblower's complaint accused that Omnicare's North Shore Pharmacy in Massachusetts was paid an average $27.75 per prescription by private insurers, while payments for Medicaid patients averaged $47.15 per prescription. Pricing regulations require companies to bill Medicare the lowest price it charges private third-party payors for the same drug, according to the report.
Under the settlement, Omnicare will pay $11.6 million to Michigan and $9.45 million to Massachusetts and is required to comply with pricing regulations. Additionally, under the settlement agreement a pending lawsuit in Ohio against the company has been dismissed. Omnicare is denying any wrongdoing in these cases, according to the report.
Appointment effective Jan 1, to replace James Shelton
Dec 8 2010 (Reuters) - Pharmacy services provider Omnicare Inc (OCR.N) named industry veteran John Figueroa as its new chief executive officer, effective Jan 1.
Figueroa, with more than 20 years of experience in the healthcare industry, most recently served as president of the U.S. pharmaceutical group at McKesson Corp (MCK.N).
Figueroa will replace James Shelton, who was appointed as an interim CEO in August after the company's longtime CEO resigned unexpectedly.
Shelton will remain with Omnicare as the new non-executive chairman of its board and assist Figueroa during the transition period.
Omnicare's shares which have gained about 10 percent in the last three months closed at $23 Tuesday on the New York Stock Exchange. (Reporting by Krishnakali Sengupta in Bangalore; Editing by Jarshad Kakkrakandy)
In November 2009, Omnicare paid $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 kickbacks. [1] The company admitted no wrongdoing.[2] The charges included allegations that Omicare 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. The settlement also covered a whistleblower lawsuit that alleged that Omnicare paid $50 million to the owners 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.
Omnicare Inc., the nation's largest nursing home pharmacy, conceded in a settlement with the U.S. Department of Justice (DOJ) to pay $98 million to resolve allegations that the company engaged in several kickback schemes. Approximately $68.5 million of the settlement proceeds will go to the United States, while $43.5 million has been allocated to cover Medicaid program claims by participating states.
According to the DOJ, Omnicare allegedly solicited and received kickbacks from pharmaceutical manufacturer Johnson & Johnson (J&J) in exchange for agreeing to recommend that physicians prescribe Risperdal, a J&J antipsychotic drug, to nursing home patients. J&J's kickbacks to Omnicare 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.
Also, Omnicare regularly paid kickbacks to nursing homes by providing consultant pharmacist services at rates below the company's cost-and below fair market value for such services-in order to induce the homes to refer their patients to Omnicare for pharmacy services, the government alleged.
“These defendants broke the law to take advantage of our nation's most vulnerable citizens-the elderly and the poor,” said Tony West, assistant attorney general for the Civil Division of the Department of Justice.
In addition to these allegations, the government filed a complaint against two Atlanta-based nursing home chains, Mariner Health Care Inc. and SavaSeniorCare Administrative Services LLC, for accepting a kickback from Omnicare in return for pharmacy services contracts.
The DOJ said Omnicare paid a $50 million kickback to the chains, which was disguised as a purchase of a small business unit of Mariner that had only two employees and was worth far less than the money offered.
On the same day that Omnicare allegedly paid Mariner $50 million for this business unit-which had only $2 million to $3 million in assets-Mariner signed a 15-year contract with Omnicare to refer all of its nursing home patients to Omnicare for the patients' drug purchases, including those covered by Medicare and Medicaid.
The Washington Post reported OmniCare's profits soared because of recent settlements for kickbacks decreased their anticipated legal defense costs. Omnicare Inc., which dispenses drugs to nursing homes and long-term care facilities, said its profit almost tripled in the fourth quarter after it resolved allegations it paid kickbacks to nursing homes, and received money for buying and recommending drugs.
In June, Omnicare agreed to pay $98 million to settle the investigation. The terms were completed in November. The Justice Department said Omnicare paid $50 million to Mariner and Sava Senior Care owner/operators Murray Forman, Leonard Grunstein, and Rubin Schron to gain their business, while also asking for and getting kickbacks from two drug companies for recommending their products.
In the fourth quarter, the company said its profit rose to $80 million, or 68 cents per share, from $27.6 million, or 24 cents per share, a year earlier. Omnicare said it earned 74 cents per share from continuing operations, but that includes a tax benefit of 11 cents per share. Its revenue fell 2 percent to $1.54 billion from $1.57 billion
Analysts expected a profit of 63 cents per share and $1.55 billion in revenue, according to a Thomson Reuters survey.
The company reported a total of $5.7 million in pretax litigation costs in its latest quarter, compared to $48.1 million pretax a year ago.
Omnicare said its pharmacy services revenue fell 1 percent to $1.51 billion from $1.53 billion. The decline came from greater use of low-cost generic drugs, smaller reimbursement payments for certain drugs, and a decrease in the amount of beds served. The company said it did more business with assisted living facilities, which typically don't buy as many drugs as acute care centers or other facilities it does business with.
Revenue from Omnicare's clinical research business slipped to $34.3 million from $49.1 million.
In 2009, Omnicare said its profit jumped 51 percent to $211.9 million, or $1.80 per share, from $140.5 million, or $1.19 per share. Revenue decreased less than 1 percent to $6.17 billion from $6.21 billion.
The settlement is the result of a whistleblower case filed in Chicago in 2003 by a former Omnicare financial analyst. In one instance, the whistleblower's complaint accused that Omnicare's North Shore Pharmacy in Massachusetts was paid an average $27.75 per prescription by private insurers, while payments for Medicaid patients averaged $47.15 per prescription. Pricing regulations require companies to bill Medicare the lowest price it charges private third-party payors for the same drug, according to the report.
Under the settlement, Omnicare will pay $11.6 million to Michigan and $9.45 million to Massachusetts and is required to comply with pricing regulations. Additionally, under the settlement agreement a pending lawsuit in Ohio against the company has been dismissed. Omnicare is denying any wrongdoing in these cases, according to the report.
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