ASD Specialty Healthcare, LLC, operating as Oncology Supply Company and a subsidiary of Cencora, Inc. (formerly AmerisourceBergen Corporation), has agreed to pay $1 million to settle allegations that it violated the False Claims Act. The settlement addresses claims that the company paid kickbacks to health care providers and medical practice executives to encourage them to purchase specialty pharmaceutical products from Oncology Supply.
According to the settlement agreement, ASD admitted responsibility for certain actions. From January 2012 through October 2019, another Cencora subsidiary, International Oncology Network (ION), organized conferences for members of its Large Practice Program. During these events, employees of ION and Oncology Supply provided meals and alcohol at upscale restaurants as well as entertainment such as rounds of golf and outings at bars and nightclubs for health care providers and medical practice executives. In some cases, expenses were also covered for spouses attending these events.
Additionally, outside the conference setting between January 2012 and September 2022, ASD Specialty Healthcare employees continued to provide similar benefits—including meals, alcohol, golf outings, and nightclub visits—to health care professionals and executives. The government alleges that these actions led physicians to submit false claims to Medicare and Medicaid due to the influence of these kickbacks.
The settlement resolves claims brought under the whistleblower provisions of the False Claims Act. This allows private individuals to file lawsuits on behalf of the United States government and receive a portion of any recovered funds. In this case—United States et al. ex rel. Brandon Osborn v. AmerisourceBergen Corporation et al., No. 20-cv-12018-IT—the whistleblower will receive 17.5% of the settlement amount.
United States Attorney Leah B. Foley announced the resolution along with officials from the U.S. Department of Health and Human Services. Assistant U.S. Attorney Lindsey Ross managed the case.