ASD Specialty Healthcare, doing business as Oncology Supply, agreed to pay 1 million to resolve allegations it violated the False Claims Act by paying kickbacks to healthcare providers and medical practice executives to induce purchases of specialty pharmaceutical products, according to a March 6 news release from the Justice Department.
What happened?
- Between January 2012 and September 2022, Oncology Supply employees and employees from Cencora subsidiary International Oncology Network provided meals, alcohol and entertainment, including golf outings, bar and nightclub visits, to physicians and medical practice executives.
- The government also alleged the entertainment occurred at conferences hosted for members of ION’s Large Practice Program between January 2012 and October 2019. At some events, ASD covered expenses for spouses of healthcare providers and practice executives.
- The kickbacks allegedly led physicians to submit false claims to Medicare and Medicaid. As part of the settlement, ASD admitted and accepted responsibility for certain facts underlying the allegations.
