Omnicell, a Delaware-based company, has agreed to pay $4,366,660 to settle claims of overbilling the United States Department of Veterans Affairs (VA) for medical device hardware and software. This announcement was made by Richard R. Barker, the Acting United States Attorney for the Eastern District of Washington.
The issue arose from Omnicell's federal contract with the VA between January 2017 and February 2023. The contract stipulated that products would be sold or leased at a set price or negotiated discounted rate. However, allegations under the False Claims Act suggested that Omnicell did not consistently adhere to these pricing agreements.
Upon identifying certain pricing discrepancies on individual orders, Omnicell occasionally issued credits or corrected prices charged to federal government customers. Despite this, they failed to systematically address known issues within their sales and pricing system or analyze whether other federal customers had been similarly overcharged.
In August 2023, a former employee brought forward allegations of fraudulent overcharging through a qui tam complaint filed under seal in the U.S. District Court (EDWA). Such complaints allow the United States to investigate and decide whether to intervene in litigation. As part of the settlement, this whistleblower will receive $785,998.80 from the settlement amount. Additionally, $2,183,330 is designated as restitution to be returned to the VA.
Acting United States Attorney Barker stated: “Veterans who served our country deserve the best health care possible. It is important that companies who do business with the VA and the federal government are accurate in how they charge for goods and services.” He also expressed appreciation for Omnicell’s prompt acceptance of responsibility and commitment to future compliance.
Special Agent in Charge Dimitriana Nikolov from the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office emphasized: “This settlement sends a clear message that the VA OIG will actively investigate allegations involving contractors overbilling for products provided to VA.”
The investigation leading to this settlement was conducted jointly by the United States Attorney’s Office and the VA Office of Inspector General, with Assistant United States Attorney Jacob E. Brooks handling prosecution efforts.
