Drug distributor to pay $13M to settle kickback allegations
ABC News
Federal authorities say pharmaceutical distributor Cardinal Health Inc. has agreed to pay more than $13 million to resolve allegations that it violated federal law by paying kickbacks to some doctors’ offices
BOSTON -- Pharmaceutical distributor Cardinal Health Inc. has agreed to pay more than $13 million to resolve allegations that it violated federal law by paying kickbacks to some doctors' offices, federal authorities said Monday.
Cardinal Health induced physician practices to buy medications from Cardinal rather than from competitors by paying those practices in advance of any drug purchases, and not in connection with any specific purchases, according to the settlement.
Those upfront payments “either were not attributable to identifiable sales of pharmaceutical products or were purported rebates that the customers had not actually earned,” the settlement said.
A voicemail seeking comment was left with a spokesperson for Dublin, Ohio-based Cardinal Health.
