AGG Litigation, Government Investigations, and Healthcare partner, Sara Lord, was quoted in an October 17, 2022, article published by Part B News about a major anti-kickback case involving “prebates” on bulk specialty drug sales, which is leading to cash settlements with provider groups.
“Part of the problem, as it was alleged in the whistleblower’s complaint, is that the specialty drugs in this case have to be purchased by the practices or the providers up front, and before they can be reimbursed by the government,” said Sara. “And specialty drugs can be unbelievably expensive for a provider to have to carry that expense until the government reimburses them for the rebated cost of the drugs may be difficult. Providing the funds as prebates eases that burden and incentivizes the provider to purchase from the distributor.”
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