Seems like the jig is up for 'ol Amgen, DaVita and FMC.
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http://www.beaumontenterprise.com/news/local/76779897.html Suit alleges Medicare fraud by drug companyBy KEN FOUNTAIN
November 29, 2009
Posted: November 27, 2009, 9:58 PM CST Last updated: November 27, 2009, 10:00 PM CST
The allegations in the lawsuit are shocking.
Salesmen, not doctors, dictated dosages of a widely used anemia drug to bolster the bottom line of a major pharmaceutical firm.
According to the suit filed in a Beaumont federal court, salesmen worked in cahoots with dialysis clinics nationwide to pump the maximum amount of the drug Epogen into the bloodstreams of terminally ill patients - an amount just below the threshold that would raise the suspicion of Medicare auditors.
The drug was paid for by taxpayers, at a cost of between $1,500 and $2,000 per injection.
As part of the scheme, employees of the clinics got vacations, golf outings, dinners and other rewards, the lawsuit alleges.
The players
Ivey Woodard, who once worked as a regional sales manager in Texas for the pharmaceutical firm Amgen Inc., claims in the suit that he and other sales representatives were often allowed by dialysis clinics to act essentially as doctors by dictating the dosages of the anemia drug.
Woodard, who now works as a nurse practitioner in Tennessee, has filed a False Claims Act case. In such a lawsuit, a person files on behalf of the federal government, but the government does not have to intervene in the case.
He accuses Davita Inc. and Fresenius Medical Care, the nation's two leading dialysis clinic companies, of prescribing excessive doses of Epogen in order to bilk the government out of millions of dollars.
A lawyer for Davita said Woodard's charges are "without mert," while a Fresenius said that because the company has not been served with court papers, it is no longer a defendant. But the company still is listed in the suit.
If the government decides to intervene in the lawsuit, Woodard, who would not comment on case when contacted by phone, stands to recover up to 25 percent of whatever damages and penalties are recovered.
That could be a lot of money.
Read more in Saturday's Beaumont Enterprise.