Feds Accuse McKesson Of Medicare Fraud

DELTA, MISS. (CN) - McKesson Corp. defrauded Medicare of millions of dollars by setting up a sham company through which it funneled Medicare money to nursing homes, federal prosecutors say.

McKesson's subsidiary, MeKesson Medical-Surgical MediNet promised the nursing home owner, GGNSC Holdings, fka Beverly Enterprises, millions of dollars if it bought supplies from McKesson, the complaint states. "McKesson did so by setting up and managing a sham DME supplier, defendant Ceres Strategies Medical Services Inc. (CSMS), which was affiliated with defendant Beverly, but actually managed by defendant MediNet.

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