DOJ investigates McKesson Corp.

Friday, October 31, 2008

WASHINGTON--The government has intervened in a lawsuit against several companies, including McKesson, that alleges they accepted illegal kickbacks and formed sham DME companies, the Department of Justice announced Oct. 6. In a complaint, the government alleges that McKesson, through a subsidiary called MediNet, structured arrangements that ensured its DME and supplies were used by Beverly Enterprises at its Golden Horizons assisted living facilities. Furthermore, it alleges McKesson promised Beverly significant profits for making it appear to Medicare that Beverly was supplying the DME and supplies, not McKesson or MediNet.