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SHOPKO PHARMACY COOPERATES WITH UTAH MEDICAID & OFFICE OF INSPECTOR GENERAL
The Utah Attorney General announced today that ShopKo Stores Operating Co., LLC entered into a resolution with Utah Medicaid and the Office of Inspector General. The resolution was reached over ShopKo's self-disclosure that the company had employed a pharmacist for a number of years who could not participate in Medicaid, Medicare or Tricare funding.
"To their credit and honesty, ShopKo stepped forward and admitted the mistake," says Attorney General Mark Shurtleff.
ShopKo disclosed the violation and negotiated a resolution with the Utah Attorney General's Office Medicaid Fraud Control Unit and the Office of Inspector General acting on behalf of the United States Department of Health and Human Services and Tricare Management Activity (TMA).
"It is unique in law enforcement for company officials to stand up and acknowledge they made a mistake by employing someone who had been excluded from participating in federally funded health care programs," says Robert Steed, Director of the Utah Medicaid Fraud Control Unit.
The pharmacist was excluded under a law that restricts providers from employing people who have engaged in conduct that constitutes fraud against federal health care programs or acts of abuse or neglect against recipients of federally funded health care programs. Under the agreement ShopKo agreed to pay $669,824. Based on ShopKo's self-disclosure, the Attorney General's Office and the OIG are satisfied that Shopko's existing internal screening procedures will assure this experience does not happen again.
"There is no evidence or suggestion that ShopKo committed any violation of the law with respect to billing Medicaid or other health care programs for services that were not rendered or for pharmaceutical products that were not delivered or affecting quality or care," adds Steed.
The Office of Inspector General notes that companies that make mistakes or self report violations of the exclusion law will be treated differently than a company that violates the law and attempts to cover it up.
"The penalty for violating the exclusion law is severe," says Steed, "The best way to address a violation is through full disclosure to the Office of Inspector General as soon as the violation is discovered."
The settlement with Shopko was negotiated by counsel for the Office of Inspector General and Robert Steed on behalf of the Medicaid program.
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