DOJ Files False Claims Act Complaint Against Compounder

The U.S. Department of Justice filed a complaint against Patient Care America, a Pompano Beach, Florida compounding pharmacy, claiming the firm made illegal payments to secure prescriptions for drugs reimbursed by TRICARE — the federally-funded health care program for military members and their families.

The DOJ brought the civil action on behalf of two former PCA employees and the Department of Defense to “recover treble damages sustained by, and civil penalties and restitution owed to, the United States” by the scheme.

The DOJ also brought claims against two pharmacy executives, Patrick Smith and Matthew Smith, as well as a Los Angeles, California private equity firm, Riordan Lewis & Haden — which manages the pharmacy and the fund that owns it — for alleged involvement in the scheme.

The suit alleged that the defendants paid kickbacks to marketing companies to target beneficiaries of TRICARE for prescriptions for compounded pain creams, scar creams and vitamins.