On February 23, 2018, DOJ announced that it was intervening in an FCA suit brought by two former employees against a Florida pharmacy, Diabetic Care Rx LLC, doing business as Patient Care America.  DOJ’s complaint in intervention alleges that the pharmacy paid illegal kickbacks to induce prescriptions for drugs reimbursed by TRICARE, a federally funded health care program for members of the military and their families.  Two pharmacy executives were also named in the complaint, along with California-based Riordan, Lewis & Haden, Inc., the private equity company that owns the pharmacy.  DOJ’s complaint alleges specifically that the defendants paid telemedicine doctors to prescribe compounded medicines to be reimbursed by TRICARE without having seen the patients; paid patients to accept these prescriptions; and split the proceeds from the scheme with marketers. United States ex rel. Medrano and Lopez v. Diabetic Care Rx, LLC dba Patient Care America, No. 15-CV-62617 (S.D. Fla.).

DOJ Press Release