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Kickbacks lead to nursing home residents being prescribed drugs


Posted on Jan 29, 2010

The U.S. Attorney in Boston has filed a 34 page complaint against the massive health care company Johnson & Johnson, accusing them of using kickbacks to push the use of their antipsychotic and antibiotic drugs.  The charges against J&J stem from two consolidated whistle-blower lawsuits.

 

According to the complaint, J&J paid millions of dollars to pharmacy giant Omnicare in an effort to boost sales of specific drugs used in nursing homes.  J&J believed that Omnicare pharmacists could influence doctors to prescribe the drugs for their nursing home patients, and paid them to do so.

 

The kickbacks were provided to Omnicare in a variety of forms, including rebates, grants and education funding.  Allegedly as a result of the scheme sales of J&J’s antipsychotic drug Risperdal nearly tripled over a five year period, and antibiotic Levaquin jumped in Omnicare market share from 19.2 percent to 66.4 percent.

 

This isn’t the first time that Omnicare has been in trouble for such a scheme.  This past November the Kentucky-based pharmacy agreed to pay $98 million to settle similar allegations brought by the federal government and various states.  Omnicare also had to enter into a corporate integrity agreement with the Department of Health and Human Services as part of the settlement.

 

The prescribing of antipsychotic drugs like Risperdal is controversial, because some nursing homes use it to subdue patients as a form of chemical restraint.  It is unknown at this time if the increase in Risperdal prescriptions was partially due to increased use of the drug to chemically control difficult nursing home residents.

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