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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Allegations of Illegal Kickbacks

PharMerica, a subsidiary of AmerisourceBergen, “agreed to pay $5,975,000 and to enter into a corporate integrity agreement to resolve its liability under the CMPL provisions applicable to kickbacks. The [Office of Inspector General for the Department of Health and Human Services] alleged that PharMerica entered into a purchase and sale agreement with the owners of a nursing facility chain to acquire the chain’s institutional pharmacy for $7.2 million. Prior to the purchase of the pharmacy, the pharmacy had been operational for only eight weeks and was serving a small percentage of the nursing facilities’ approximately 2800 residents. PharMerica allegedly conditioned its purchase of the pharmacy on the creation of a pharmacy services agreement (PSA) that contractually required the nursing facilities to order its drugs from the pharmacy. PharMerica allegedly negotiated the PSA itself in the month before the execution of the PSA. The OIG alleged that the PSA was backdated to July 9, 1996 to make it appear that the pharmacy had a longer operating history than it did.”

Misconduct Type
Ethics
Enforcement Agency
Health and Human Services
Contracting Party
Non-Governmental
Court Type
Administrative
Disposition
Settlement
Date of Settlement
3/29/2005
Contractors Involved Penalty
Total
AmerisourceBergen $5,975,000

Federal Contractor Misconduct Database