Veterans Affairs Contractor Agrees to Pay $4.3 Million to Resolve Claims of Overbilling for Products
Spokane, Washington – Omnicell, a company based in Delaware, has agreed to pay $4,366,660 to resolve claims that it fraudulently overbilled the United States Department of Veterans Affairs (VA) for medical device hardware and software, announced Richard R. Barker, the Acting United States Attorney for the Eastern District of Washington.
Between January 2017 and February 2023, Omnicell held a federal contact with the VA to sell and lease products at a set price or negotiated discounted price.
According to the settlement agreement, a False Claims Act (FCA) claim arose from allegations that Omnicell did not always charge the correct prices for products purchased and leased by federal agencies.
When Omnicell became aware of certain pricing issues related to specific individual orders, including when federal government customers raised concerns and questions, Omnicell at times issued credits or otherwise corrected prices charged to federal government customers. However, Omnicell did not always timely correct the known issues in its sales and pricing system in a systemic way, nor did Omnicell undertake an analysis to determine whether other federal government customers that may have been previously overcharged due to the pricing issues in order to provide those customers with refunds of overcharges.
In August 2023, a former Omnicell employee came forward with allegations of fraudulent product overcharging. This individual, known as a “Relator,” filed a qui tam complaint under seal in the U.S. District Court (EDWA). When a relator files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. As part of the settlement agreement, the relator will receive $785,998.80 of the settlement amount. $2,183,330 of the settlement amount has been designated as restitution, meaning that it will be returned to the VA.
https://www.justice.gov/usao-edwa/pr/veterans-affairs-contractor-agrees-pay-43-million-resolve-claims-overbilling-products