Specialty Pharmacy, CEO Settle Over Co-pays

Hand with drugs

BioTek reMEDys Inc. (BioTek), a specialty pharmacy that offers drugs and infusion services, and its CEO, Chaitanya Gadde, have agreed collectively to pay $20 million to resolve allegations that they violated the False Claims Act by paying kickbacks to patients and physicians. The government alleged that BioTek routinely waived the co-payments of Medicare and TRICARE patients to induce those patients to purchase its drugs and services. Many of the specialty drugs offered by BioTek were expensive and required patients to pay large co-pays. BioTek also allegedly provided remuneration in the form of gifts, dinners, and free administrative and clinical support services to physicians to induce those physicians to refer patients to BioTek. Read a Department of Justice press release.

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