Union City Pharmacy Agrees To Resolve False Claims Act Allegations
NEWARK, N.J. – In a shocking case of healthcare fraud, People’s Rx, Inc., d/b/a The People’s Pharmacy Shoppe, a pharmacy located in Union City, New Jersey, has agreed to pay $995,420 to resolve allegations that it violated the False Claims Act by knowingly billing a federal health care program for medications that it never dispensed, U.S. Attorney Alina Habba announced.
According to the contentions of the United States in the settlement agreement, the United States alleged that, from January 2, 2015, through January 24, 2022, People’s caused the submission of claims for reimbursement to the Medicare Part D Program and the New Jersey Medicaid Program for drugs that were never dispensed to beneficiaries. The government contends that inventory records showed that People’s did not purchase enough of these medications from wholesalers to fill the prescriptions billed to the federal health care program.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section. The government is represented by Assistant U.S. Attorneys Robert Toll and Kruti Dharia of the Opioid Abuse Prevention and Enforcement Unit and Senior Trial Counsel Jennifer Cihon in the Civil Division’s Commercial Litigation Branch (Fraud Section).
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability. The settlement amount of $995,420 is a significant blow to the pharmacy, highlighting the importance of accountability in the healthcare industry.
The case serves as a reminder of the importance of transparency and honesty in the healthcare system. It also underscores the need for pharmacies and healthcare providers to ensure that they are accurately billing for services rendered and not engaging in deceptive practices.
People’s Rx, Inc. d/b/a The People’s Pharmacy Shoppe, a pharmacy located in Union City, New Jersey, has agreed to pay $995,420 to resolve allegations that it violated the False Claims Act by knowingly billing a federal health care program for medications that it never dispensed.
Defendant: People’s Rx, Inc. d/b/a The People’s Pharmacy Shoppe
Criminal Charges: Violated the False Claims Act by knowingly billing a federal health care program for medications that it never dispensed
City and State: Union City, New Jersey
Exact Date: January 2, 2015 – January 24, 2022
Sentence or Outcome: Agreed to pay $995,420 to resolve allegations
Dollar Amounts: $995,420
Key Facts
- State: New Jersey
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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