Omnicell, a Delaware-based company, has agreed to pay $4,366,660 to resolve allegations of overbilling the United States Department of Veterans Affairs (VA) for medical device hardware and software. This announcement was made by Richard R. Barker, the Acting United States Attorney for the Eastern District of Washington.
From January 2017 to February 2023, Omnicell held a federal contract with the VA to sell and lease products at predetermined or negotiated discounted prices. However, a False Claims Act (FCA) claim emerged from accusations that Omnicell did not consistently charge correct prices for these products.
Upon recognizing certain pricing issues related to specific orders—sometimes prompted by concerns from federal government customers—Omnicell occasionally issued credits or corrected prices. Nevertheless, the company did not always address these known issues in its sales and pricing system comprehensively nor conducted an analysis to identify other potentially overcharged federal customers.
In August 2023, a former Omnicell employee filed a qui tam complaint under seal in the U.S. District Court for the Eastern District of Washington (EDWA), alleging fraudulent product overcharging. Under the False Claims Act, such complaints require the United States to investigate and decide whether to intervene or allow the relator to proceed on behalf of the government. The relator involved will receive $785,998.80 from the settlement amount. Additionally, $2,183,330 is designated as restitution and will be returned to the VA.
Acting United States Attorney Barker emphasized the importance of accurate billing by companies doing business with the VA and federal government: “Veterans who served our country deserve the best health care possible.” He expressed gratitude towards Omnicell for accepting responsibility promptly and taking steps towards compliance.
Special Agent in Charge Dimitriana Nikolov from the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office stated: “This settlement sends a clear message that the VA OIG will actively investigate allegations involving contractors overbilling for products provided to VA.” The investigation was conducted jointly by the United States Attorney’s Office (USAO) and the VA Office of Inspector General. Assistant United States Attorney Jacob E. Brooks handled this case for USAO.
