Food City, a regional grocery chain headquartered in Abingdon, Virginia, has agreed to pay over $8 million to settle allegations related to the dispensing of opioids and other controlled substances. The United States government alleged that from January 1, 2011, through December 31, 2018, 24 Food City store pharmacies dispensed medications that were medically unnecessary or lacked legitimate medical purposes, resulting in false claims to federal healthcare programs.
Under the settlement, Food City will pay the United States $8,488,378, with an additional $78,621 to the states of Virginia and Kentucky for claims paid by state Medicaid programs. These allegations were part of a qui tam case filed under the False Claims Act by K-VA-T Litigation Partnership, LLP, which allows private parties to file on behalf of the government and share in the recovery. K-VA-T Litigation Partnership, LLP will receive $1,527,908 from the settlement.
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Principal Deputy Assistant Attorney General Brian M. Boynton emphasized the responsibility of pharmacies to ensure prescriptions are medically necessary, highlighting the department’s commitment to addressing the opioid crisis. U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee reiterated the importance of using all available tools to combat the opioid epidemic.
Special Agent in Charge Kelly J. Blackmon of the HHS-OIG emphasized the importance of legitimate prescriptions in the Medicare and Medicaid programs, while Special Agent in Charge Derek M. Holt of the OPM Office of the Inspector General praised the collaborative efforts to hold pharmacies accountable.
The settlement was the result of a coordinated effort involving the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Eastern District of Tennessee, HHS-OIG, and the Defense Criminal Investigative Service. The investigation underscores the government’s commitment to combating healthcare fraud, with tips and complaints encouraged to be reported to HHS.
The claims settled are allegations only, and there has been no determination of liability.
Source: Read Original Release
Food City Settles Opioid Dispensing Allegations
Food City has agreed to pay $8.5 million to settle allegations under the False Claims Act concerning improper opioid dispensing. The settlement reflects efforts by the U.S. Department of Justice to hold pharmacies accountable for ensuring prescriptions are medically necessary, amidst the ongoing opioid crisis. The allegations involved 24 Food City pharmacies dispensing opioids without valid prescriptions from 2011 to 2018, resulting in false claims to federal healthcare programs. The qui tam lawsuit, included in the settlement, will reward K-VA-T Litigation Partnership, LLP for their role in exposing the claims.