agreed to pay Michigan $52.5 million to resolve Medicaid billing issues.
The company will pay about $49 million over a three-year period, with the majority of payments occurring in 2006. The company has also stuck a deal against certain hospice claims for about $3.5 million.
The Covington, Ky.-based company said that it agreed to settle the matter in order to avoid expensive and time-consuming litigation. The total settlement amount has been fully kept aside as reserves, Omnicare added.
The company's shares were trading up $2.21, or 5.1%, to $45.35 Thursday.
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