AmerisourceBergen Subsidiary Agrees to Pay $1 Million for Allegedly Paying Kickbacks to Health Care Providers and Medical Practice Executives

BOSTON - ASD Specialty Healthcare, LLC, (ASD) doing business as Oncology Supply Company (Oncology Supply), a distributor of specialty pharmaceutical products and a subsidiary of Cencora, Inc., f/k/a AmerisourceBergen Corporation, has agreed to pay $1 million to resolve allegations that it violated the False Claims Act by paying kickbacks to health care providers (HCPs) and medical practice executives to induce them to purchase specialty pharmaceutical products from Oncology Supply.

As part of the settlement agreement, ASD admitted and accepted responsibility for certain facts providing the basis for the settlement. Specifically, from January 2012 to October 2019, another Cencora subsidiary, International Oncology Network ("ION"), hosted conferences for its "Large Practice Program" members. At the conferences, ION and Oncology Supply employees provided meals and alcohol at high-end restaurants and various forms of entertainment to health care providers and medical practice executives, including rounds of golf and outings at bars and nightclubs. Additionally, outside the conference setting, from January 2012 to September 2022, ASD Specialty Healthcare, through 15 Oncology Supply and ION employees, also paid for meals and alcohol at high-end restaurants and various other forms of entertainment for HCPs and medical practice executives, including rounds of golf and outings at bars and nightclubs. At some of the events, ASD even covered the expenses of the spouses of HCPs and medical practice executives. The government alleges that ASD caused physicians to submit false claims to Medicare and Medicaid induced by these kickbacks.

The claims resolved in today's settlement include claims that were brought under the qui tam or whistleblower provisions of the False Claims Act. Under the Act, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States et al. ex rel. Brandon Osborn v. AmerisourceBergen Corporation, et al., No. 20-cv-12018-IT. As part of today's resolution, the relator will receive 17.5% of the settlement amount.

United States Attorney Leah B. Foley and the U.S. Department of Health and Human Services made the announcement today. Assistant U.S. Attorney Lindsey Ross handled the matter.