KY Pharmecutical Company Pays 5.2 Million In Fraud Charges

The Kentucky Department of Justice reports Cooley Medical Equipment Inc. headquartered in Prestonsburg has agreed to pay $5,254,912 for submitting false or fraudulent claims that misrepresented the ingredients used in certain compounded medical creams.According to the report, in 2015 a pharmacy in Prestonsburg operated by Cooley started making compounded medical creams. Compounding pharmacies prepare customized medications for individual patients, usually by mixing ingredients in order to create a prescription cream.The prescriptions were billed to Medicare, Kentucky Medicaid, the Department of Veterans Affairs and Veterans Health Administration is known as CHAMPVA.

Source: MG News

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