Compounder to Pay $775,000 Over Kickback Allegations

Florida compounding pharmacy Vital Life Institute agreed to pay at least $775,000 over allegations of an illegal kickback scheme.

The settlement resolves claims that the pharmacy and its owners, Jenny and William Wilkins, paid kickbacks to a third-party marketer to solicit patients for unnecessary compounded drug prescriptions. The kickbacks to the marketing entity allegedly consisted of a substantial share of the pharmacy’s TRICARE and Medicare reimbursements.

The payment will resolve a whistleblower lawsuit filed by Manfred Knopf, who received unwanted compounded medications from the pharmacy that were billed to Medicare.