Chicago Nursing Home Case: Prominent Operator Accused of Getting Kickbacks from Omnicare Inc.
New details in a whistleblower lawsuit accusing Chicago nursing home operators Philip and Morris Esformes of getting kickbacks from pharmaceutical company Omnicare Inc. were submitted in court documents last week. The latest filing is intended to support civil allegations that Omnicare inflated the purchase price it paid for a pharmacy company belonging to the father and son.
Allegedly, $16 million of the $32 million Omnicare paid for Total Pharmacy was a kickback to obtain long-term pharmacy contracts with close to 36 nursing homes owned by the Esformeses. It is against the law for pharmacies to pay nursing home owners to get them to use Medicare or Medicaid money to purchase its products.
According to the whistleblower case, Omnicare CEO Joel Gemunder offered $15 million for Total Pharmacy for three-year contracts with Esformes nursing homes (as well as $20 million for five-year contracts and $25 million for 10-year contracts). Omnicare allegedly ended up paying $25 million and allowed Total Pharmacy to keep $7 million in accounts receivables.
The latest documents included copies of handwritten notes from a March 2004 meeting between Gemunder and Morris Esformes, including notes that allegedly show Morris consenting to backdate nursing home pharmacy contracts. The Esformeses, who are part owners of at least 28 Florida and Illinois nursing homes, have denied any wrongdoing. The family owns a number of Chicago area nursing homes, including Burnham Healthcare and Presidential Pavilion.
The Esformeses have also been accused of involvement in a patient-brokering scam that sent nursing home residents to psychiatric hospitals for unnecessary treatment. They were not charged in relation to these allegations and denied that they did anything wrong.
Our Chicago nursing home abuse attorneys are committed to making sure that victims of Chicago nursing home neglect or abuse are compensated for the harm that they’ve suffered at the hands of a negligent assisted living facility. If you believe that your loved one is receiving improper medical care or being harmed or abused, there are ways to hold the parties responsible for Chicago nursing home negligence.
More details surface in nursing home case, Chicago Tribune, July 9, 2010
Chicago, Illinois Nursing Home Negligence?: Kickback Scam Links Convicted Doctor to Assisted Living Facility Operator, Chicago Nursing Home Abuse Lawyer, April 30, 2010
