Get SF Weekly Newsletters

Monday, October 6, 2008

San Francisco's McKesson Corp. Steals From The Frail

Posted By on Mon, Oct 6, 2008 at 3:21 PM

click to enlarge 610x_tall.jpg
By John Geluardi

The Feds have joined a lawsuit against San Francisco-based McKesson Corporation, which alleges that the medical supplier submitted false claims to Medicare, paid illegal kickbacks and set up a sham company to cover its tracks.

The Department of Justice announced today that it has entered into the lawsuit, which was first filed by an individual whistleblower named Thomas F. Jamison. The suit involves several companies including McKession Medical Surgical Medinet, and Arkansas-based Beverly Enterprises, which operates 345 nursing homes, 18 assisted living centers and 56 hospices.

In the scam, Beverley Enterprises was able to pocket millions in Medicare payments in exchange for referring medical supply business to a sham company, Ceres Strategies Services Inc., which was really operated by McKesson.

Confusing? It wouldn’t be corporate fraud if it wasn’t. But what it boils down to is that McKesson and its partner in crime, Beverly Enterprises, are accused of stealing millions of dollars from the elderly and disabled, who are insured by Medicare.

It’s not the first time McKesson, a fortune 500 company, has been sued for ripping off the most vulnerable among us. San Francisco City Attorney Dennis Herrera filed a suit against McKesson in May that alleged the company made millions by bilking 50,000 low-income San Franciscans by illegally raising the markup on more than 400 brand name prescription drugs.

  • Pin It

Tags: , , , , , , ,

About The Author

John Geluardi

Comments

Subscribe to this thread:

Add a comment

Popular Stories

  1. Most Popular Stories
  2. Stories You Missed

Like us on Facebook

Slideshows

  • clipping at Brava Theater Sept. 11
    Sub Pop recording artists 'clipping.' brought their brand of noise-driven experimental hip hop to the closing night of 2016's San Francisco Electronic Music Fest this past Sunday. The packed Brava Theater hosted an initially seated crowd that ended the night jumping and dancing against the front of the stage. The trio performed a set focused on their recently released Sci-Fi Horror concept album, 'Splendor & Misery', then delved into their dancier and more aggressive back catalogue, and recent single 'Wriggle'. Opening performances included local experimental electronic duo 'Tujurikkuja' and computer music artist 'Madalyn Merkey.'"