Leah B. Foley United States Attorney for the District of Massachusetts | Department of Justice
ASD Specialty Healthcare, LLC, a subsidiary of Cencora, Inc. (formerly AmerisourceBergen Corporation), has agreed to pay $1 million to settle allegations that it violated the False Claims Act by providing kickbacks to health care providers and medical practice executives. The settlement was announced in Boston.
According to the settlement agreement, ASD admitted responsibility for specific actions. From January 2012 through 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 upscale restaurants and offered entertainment such as rounds of golf and outings at bars and nightclubs to health care providers and executives. Outside these conferences, between January 2012 and September 2022, ASD Specialty Healthcare employees also paid for similar meals and entertainment for health care professionals and their spouses.
The government alleges that these actions led physicians to submit false claims to Medicare and Medicaid due to the inducement of kickbacks.
The settlement resolves claims brought under the qui tam provisions of the False Claims Act. Under this law, private individuals can file lawsuits on behalf of the United States and receive part of any recovered funds. In this case, United States et al. ex rel. Brandon Osborn v. AmerisourceBergen Corporation et al., No. 20-cv-12018-IT, the whistleblower will receive 17.5% of the settlement amount.
"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 handled the matter."
