ASD Specialty Healthcare, LLC, which operates as Oncology Supply Company and is a subsidiary of Cencora, Inc. (formerly AmerisourceBergen Corporation), has agreed to pay $1 million to settle allegations that it paid kickbacks to health care providers and medical practice executives. The settlement addresses claims that these payments were intended to induce purchases of specialty pharmaceutical products from Oncology Supply.
According to the agreement, ASD admitted responsibility for specific conduct underlying the allegations. Between January 2012 and October 2019, International Oncology Network (ION), another Cencora subsidiary, hosted conferences for its Large Practice Program members. During these events, employees from ION and Oncology Supply provided meals and alcohol at high-end restaurants as well as entertainment such as rounds of golf and outings at bars and nightclubs for health care providers and medical practice executives. Additionally, between January 2012 and September 2022, ASD employees paid for similar activities outside conference settings. In some cases, expenses for spouses of health care professionals were also covered.
The government contends that these actions led physicians to submit false claims to Medicare and Medicaid because they were influenced by these kickbacks.
Some of the claims settled were initially brought under the whistleblower provisions of the False Claims Act. This law allows private individuals to file lawsuits on behalf of the United States and receive a share of any recovered funds. In this case, relator Brandon Osborn will receive 17.5% of the settlement amount.
United States Attorney Leah B. Foley stated: “United States Attorney Leah B. Foley and the U.S. Department of Health and Human Services made the announcement today.” Assistant U.S. Attorney Lindsey Ross managed the case.
