This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Omnicare's Recycling Headache

An Illinois lawyer has some photographs that he believes might make the folks at Omnicare (OCR) cringe.

Lawyer Ronald Osman, who is fighting a company now owned by Omnicare in court, says the FBI snapped the photos during a raid several years ago that led to two criminal convictions. The pictures, he says, show how drugs unused by nursing home patients were mishandled before they were repackaged and sold again. Osman's client, whistleblower Denise Crews, claims Medicaid paid twice for the same drugs -- including some that were allegedly adulterated during the recycling process -- and deserves to be reimbursed as a result.

One picture features giant trash bags gaping open with loose pills that have been stripped of the expiration dates and lot numbers that once identified them. Another shows smaller containers of pills thrown into a desk alongside pens, a set of pliers and several Rice Krispies treats. A third offers a neater view of sorted baggies of pills headed for a special machine designed to heat-seal them into blister packs labeled for use by nursing home patients.

Crews' suit targets NCS HealthCare, an institutional pharmacy catering to nursing homes that has since been acquired by Omnicare. Medicaid doesn't forbid the use of recycled drugs. It does, however, require companies to carefully handle those drugs -- keeping their seals and control numbers intact -- if they want to conduct business with the agency. Osman offers the FBI photographs as evidence of wrongdoing.

"Everybody admits that all of this happened," says Osman, who set a record when he won a $140 million Medicare fraud settlement against Blue Cross/Blue Shield of Illinois seven years ago. "But the defense is: 'So what? You cannot track one of those adulterated pills through the system and tell us for certain that it was given to a nursing home patient and then paid for by the government.'"

1 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs