Glen Mills drug compounding company pays $17 million to settle false claims action

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U.S. Attorney William M. McSwain announced a company based just north of the Delaware line agreed to pay the United States $17 million to settle allegations that the company submitted false claims to Medicare and other government health care programs.

Headquartered in Glen Mills, PA, Pentec furnishes a range of renal and specialized pharmacy compounding services, including the compounding of its drug, Proplete.

The United States alleged that from 2007 to 2018, Pentec billed Medicare and other federal healthcare programs for amounts 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 with the Department of Health and Human Services, Office of Inspector General 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.

“We are committed to ensuring that compounding pharmacies appropriately bill Medicare,” said U.S. Attorney William McSwain. “Pentec allegedly padded its bottom line through several improper means, including by charging the government for quantities of medication that its patients did not actually need or receive. Those who engage in these practices will be held accountable.”

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 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.

“We thank the relator for her invaluable contribution in this case. Together with her lawyers, they provided vital assistance to the government throughout this case. Without information from citizens like the relator, detecting fraud and conserving government program funds would be far more difficult,” said McSwain.

Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

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