A former chief marketing officer for a New Castle-based pharmacy company has agreed to settle a whistleblower case involving kickbacks to physicians and waiving co-pays on federal healthcare programs such as Medicare.
Carla Sparkler, former Chief Marketing Officer of BioTek reMEDys Inc. agreed to a a six-year federal healthcare exclusion, which will prohibit her from participating in any federally funded health care program.
The government alleged that, from at least August 2015 through May 2020, Sparkler routinely waived the copayments of Medicare and TRICARE (government employee) patients to induce those patients to purchase its drugs and services. Many of the specialty drugs offered by BioTek are expensive and required patients to make large copayments.
The government alleged that BioTek sought to avoid deterring patients from purchasing its drugs and services by “engaging in a scheme, orchestrated, and implemented by Sparkler, to routinely waive these large copays, without regard for whether the patients were experiencing financial hardship.”
Filings indicatd BioTek provided benefits in the form of gifts, dinners, and free administrative and clinical support services to physicians – in particular Dr. David Tabby, who operated a neurology practice in Bala Cynwyd, PA in an effort to move patients to the pharmacy company.
Dr. Tabby has separately paid $480,000 to settle these allegations. Biotek and its chief executive officer, Chaitanya Gadde, previously agreed collectively to pay $20 million based on their ability to pay to resolve allegations.
“This settlement resolves allegations that Ms. Sparkler orchestrated Biotek’s scheme to provide kickbacks, including the improper waiver of co-pays, to encourage doctors to use its services,” said U.S. Attorney David C. Weiss for the District of Delaware. “Those who, for personal gain, flout the rules established by federal healthcare programs raise the costs for everyone and do a disservice to their patients. They forfeit their right to participate in those programs.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by former BioTek employees Shantae M. Wyatt and Latoya Sparrow. Under those provisions, a private party and receive a portion of any recovery.
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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