Pentec Health, Inc. to Pay $17 Million to Settle False Claims Act Allegations

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https://www.justice.gov/usao-edpa/pr/pentec-health-inc-pay-17-million-settle-false-claims-act-allegations

Department of Justice
U.S. Attorney’s Office
Eastern District of Pennsylvania

FOR IMMEDIATE RELEASE
Monday, February 4, 2019

Pentec Health, Inc. to Pay $17 Million to Settle False Claims Act Allegations

PHILADELPHIA – U.S. Attorney William M. McSwain announced that Pentec Health, Inc. (“Pentec”) has agreed to pay the United States $17 million to settle allegations that Pentec submitted false claims to Medicare and other government healthcare programs. Headquartered in Glen Mills, Pennsylvania, Pentec furnishes a range of renal and specialized pharmacy compounding services, including the compounding of its drug, Proplete, and the provision of intradialytic parenteral nutrition (“IDPN”) and intraperitoneal nutrition (“IPN”) to individuals with end stage renal disease.

The United States alleges that from 2007 to 2018, Pentec billed Medicare and other federal healthcare programs for excessive amounts of product wasted during the compounding of Proplete, and Pentec routinely waived patient copayments and deductible obligations in order to induce the prescription and use of Proplete. Pentec also submitted duplicate and improperly coded claims to the Federal Employee Health Benefits Program.

Along with this Settlement, Pentec has also signed a Corporate Integrity Agreement (“CIA”) with the Department of Health and Human Services, Office of Inspector General (“HHS-OIG”). The company is subject to exclusion from Federal health care programs, including Medicare and Medicaid, for a material breach of this CIA and subject to monetary penalties for less significant breaches for a period of five years.
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This settlement resolves a lawsuit filed under the False Claims Act (FCA) in the U.S. District Court for the Eastern District of Pennsylvania by Jean Brasher, a former employee of Pentec, under the qui tam or whistleblower provisions of the FCA, which permit private citizens to bring lawsuits on behalf of the United States and obtain a portion of the government’s recovery. The FCA also permits the government to intervene and take over the lawsuit. Ms. Brasher was represented by David Bocian, Esq. of Kessler Topaz Melzter & Check, LLP.
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