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Omnicare, Inc.
Traded as NYSEOCR
Industry Pharmaceuticals
Headquarters Cincinnati, Ohio, USA
Key people
The New York Stock Exchange building on September 1, 2011 with an Omnicare banner marking the 30th anniversary of the company's public listing.

Omnicare is a Fortune 500 company based in Cincinnati, Ohio. Omnicare functions primarily as a provider of pharmaceuticals, related consulting and data management services. As of December 31, 2009 the company provided its pharmacy services to skilled nursing, assisted living, and other healthcare facilities comprising approximately 1.4 million beds in 47 U.S. states, the District of Columbia and Canada. Omnicare's CEO is Dominic J. Rosso

In 2012, the Federal Trade Commission (FTC) sued Omnicare to block its hostile takeover of its rival PharMerica under federal anti-trust law. The FTC alleged that the acquisition would boost drug costs and inflate Medicare expenditures by consolidating the industry and reducing price competition.[2] PharMerica owned 97 long-term-care pharmacies, while Omnicare owned approximately 200. The merger would have given Omnicare a 57% marketshare versus two percent for its nearest, non-PharMerica rival.[3] Because of the FTC opposition, the takeover was terminated.

Whistleblower Lawsuits[edit]

In November 2009, Omnicare paid $98 million to the federal government to settle five “qui tam” (whistleblower) lawsuits and government charges that the company had paid or solicited a variety of kickbacks.[4] The company admitted no wrongdoing.[5] The charges included allegations that Omicare solicited and received kickbacks from a pharmaceutical manufacturer Johnson & Johnson, in exchange for agreeing to recommend that physicians prescribe Risperdal, a Johnson & Johnson antipsychotic drug, to nursing home patients.

Starting in 2006, healthcare entrepreneur Adam B. Resnick sued Omnicare, a major supplier of drugs to nursing homes, under the False Claims Act, as well as the parties to the company’s illegal kickback schemes. Omnicare allegedly paid kickbacks to nursing home operators in order to secure business, which constitutes Medicare and Medicaid fraud. Omnicare allegedly had paid $50 million to the owners (Leonard Grunstein and Rubin Schron) of the Mariner Health Care Inc. and SavaSeniorCare Administrative Services LLC nursing home chains in exchange for the right to continue providing pharmacy services to the nursing homes.[6]

In 2010, Omnicare settled Resnick's False Claims Act suit that had been taken up by the U.S. Department of Justice by paying $19.8 million to the federal government, while Mariner and SavaSeniorCare settled for $14 million.[7][8]

A second whistleblower lawsuit filed against Omnicare it by Resnick and Total Pharmacy Services V.P. Maureen Nehls related to kickbacks that were part of its 2004 acquisition of Total Pharmacy Services was settled for $17.2 million by Omnicare and $5 million by the Total Pharmacy owners.[9][10]


  1. ^ David A. Mann (25 Mar 2014). "Omnicare gets its fourth CEO in four years". Louisville Business First. Retrieved 24 Jun 2014. 
  2. ^ "FTC Sues to Block Omnicare's Bid to Buy Rival Pharmacy Provider PharMerica; Deal Would Lead to Higher Costs for Medicare Patients and Taxpayers, Agency Alleges". Federal Trade Commission. Retrieved 12 September 2013. 
  3. ^ "FTC blocks Omnicare acquisition of PharMerica". Drug Topics. Retrieved 12 September 2013. 
  4. ^ Department of Justice (November 3, 2009). "Nation's largest nursing home pharmacy and drug manufacturer to pay $112 million to settle false claims act cases". 
  5. ^ Hilzenrath, David S. (January 16, 2010). "Justice suit accuses Johnson & Johnson of paying kickbacks". The Washington Post. Retrieved January 17, 2010. 
  6. ^ U.S. Department of Justice (March 4, 2009). "Complaint of the United States in the District Court of Massachusetts CA No. 06-10149 RGS". 
  7. ^ Ameet, Sachdev. "Scheme's victims Scheme's victims seeking restitution FDIC could get most of payment; FDIC could get most of payment". Chicago Tribune. Retrieved 12 September 2013. 
  8. ^ "Prominent New York City Real Estate Investor, Attorney and Atlanta Nursing Home Chains Pay $14 Million to Settle Whistleblower Kickback Case". PR Newswire. Retrieved 12 September 2013. 
  9. ^ Monk, Dan (16 July 2013). "Omnicare settles whistleblower case in Illnois". Scripps Media. Retrieved 12 September 2013. 
  10. ^ Jackson, David & Gary Marx (6 August 2013). "Nursing home execs agree to pay $5 million to settle suit". Chicago Tribune. Retrieved 12 September 2013. 

External links[edit]