(RTTNews) -  Tuesday, U.S. Department of Justice said nursing home pharmacy Omnicare Inc. (OCR: News ) has agreed to pay $98 million to resolve allegations that Omnicare was engaged in kickback schemes with several parties, including IVAX. The settlement was reached between the company and the U.S. Attorney's Office, District of Massachusetts, the Departments of Justice and Health and Human Services, as well in various of the states in which the Company does business.

The allegations include claims that Omnicare had purchased a medical supply business at an higher price to induce the referral of business, the company is alleged that it received improper payments from pharmaceutical manufacturers and provided consultant pharmacist services to customers at below cost and fair market value to induce the referral of business.

Commenting on the allegations Tony West, Assistant Attorney General for the Civil Division of the Department of Justice said, "These defendants broke the law to take advantage of our nation's most vulnerable citizens - the elderly and the poor."

The agreement does not include any finding of wrongdoing or any admission of liability by the company. However, the company agreed to settle the matters in order to avoid expensive and time-consuming litigation and to focus on its mission of providing high-quality pharmaceutical care for the frail elderly.

Omnicare said that it has voluntarily entered into an amended and restated Corporate Integrity Agreement or CIA with the Department of Health and Human Services. The CIA will be in effect for a period of five years and provides for, among other things, training and oversight to demonstrate Omnicare's commitment to comply with the applicable laws and regulations governing pharmacies.
"Omnicare and other nursing home pharmacies specialize in providing drugs to elderly patients who are often suffering from Alzheimer's Disease or dementia and who have little or no control over the drugs they receive," said Michael Loucks, Acting U.S. Attorney for the District of Massachusetts. "

Separately, it was alleged that Omnicare, Mariner Health Care Inc., SavaSenior Care, Grunstein, Forman, and Schron conspired to arrange for Omnicare to pay the nursing home chains $50 million in exchange for the right to continue providing pharmacy services to the nursing homes Administrative Services LLC, which together constituted one of Omnicare's largest customers.

The allegations are also against IVAX, now a subsidiary of Teva Pharmaceuticals Industries, Ltd., which has agreed to pay $14 million to settle the suit.

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