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Feds Settle $1.2 Million Case Against Tampa Compounding Pharmacy

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The federal government alleged that the company charged charged a military health-care program at least 2,000 percent more for drugs than it charged cash-paying customers in violation of the False Claims Act.

TAMPA – A now-defunct Tampa-based compounding pharmacy and its owner have agreed to pay $1.2 million to the federal government to resolve accusations that they submitted excessive bills to a military health-care program, according to the U.S. Attorney’s Office for the Middle District of Florida.

The federal government accused RS Compounding, LLC, and its owner, Renier Gobea, of  knowingly billing TRICARE excessive prices for compounded prescriptions. Specifically, the feds said that, between Jan. 1, 2012, and Jan. 31, 2014, Gobea and RS Compounding charged TRICARE at least 2,000 percent more for drugs than they charged cash-paying customers, in violation of the False Claims Act.

TRICARE, the health care program for uniformed service members and their families, prohibits pharmacies from charging TRICARE more than the general public. Gobea and RS Compounding charged TRICARE vastly more than they charged the public, in some cases more than 10,000 percent more, the government alleged. When Gobea and RS Compounding determined that this practice violated TRICARE policy in January 2014, they made mere prospective changes and did not return the profits secured by the overcharges. In an ability-to-pay settlement, the government agreed to accept $1.2 million to resolve these allegations.

TRICARE’s costs for compounded drugs rose from $5 million in 2004 to $514 million in 2014 and $1.75 billion in fiscal year 2015. To date, the U.S. Attorney’s Office for the Middle District of Florida has pursued numerous actions involving fraud associated with compounding pharmacies, resulting in more than $57 million in settlements.

“This case is part of our long-standing efforts to hold compounding pharmacies accountable,” said U.S. Attorney Maria Chapa Lopez. “We will continue to combat unscrupulous practices in all forms, especially those that harm or interfere with the care received by our service members and their families.”

Special Agent in Charge John F. Khin, Southeast Field Office.said, “This settlement demonstrates the commitment of the Defense Criminal Investigative Service and its law enforcement partners to ensure that medical service providers do not unjustly enrich themselves by wasting and diverting precious taxpayer dollars. DCIS protects and preserves the integrity of TRICARE, a vital DoD program serving U.S. service members, retirees, and their families.”

This lawsuit was filed under the whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they discover evidence that defendants have submitted false claims for government funds and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it has done in this case. Whistleblower McKenzie Stepe filed this qui tam case, and, although she passed away during the pendency of the case, her estate will receive $264,000 as part of the settlement.

The claims resolved by this settlement are allegations only, and there has been no determination of liability.

U.S. Attorney | Courts | Whistleblower Law | Tampabay News

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Feds Settle $1.2 Million Case Against Tampa Compounding Pharmacy
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Feds Settle $1.2 Million Case Against Tampa Compounding Pharmacy
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The federal government alleged that the company charged charged a military health-care program at least 2,000 percent more for drugs than it charged cash-paying customers in violation of the False Claims Act.
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TB Reporter
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