Daily Briefing

Around the nation: CVS' Omnicare division files for bankruptcy


Omnicare, CVS' pharmacy services subsidiary, has filed for Chapter 11 bankruptcy just months after being ordered to pay almost $950 million in penalties for improper billing to government healthcare programs, in today's bite-sized hospital and health industry news from Arkansas, Ohio, and Texas. 

  • Arkansas: Walmart has expanded its same-day pharmacy services to include refrigerated and reconstituted medications. Currently, refrigerated medications, such as insulin, pediatric amoxicillin, and GLP-1 drugs, make up over 30% of Walmart's pharmacy sales. According to Becker's Hospital Review, Walmart is the first retailer to deliver refrigerated prescriptions alongside customers' everyday orders. "We continue to unlock new levels of convenience while also broadening access to critical medications," said Kevin Host, SVP of pharmacy at Walmart. "Adding refrigerated prescriptions to our Pharmacy Delivery capabilities is the result of listening to our customers, identifying where we can create even better, seamless experiences and keeping the communities we serve at the heart of what we do." Walmart first launched its pharmacy delivery service in October 2024 and has filled over 4 million pharmacy delivery orders since then. (Murphy, Becker's Hospital Review, 9/23; Walmart press release, 9/22)
  • Ohio: Omnicare, CVS' pharmacy services subsidiary, has filed for Chapter 11 bankruptcy. In its bankruptcy petition, Omnicare claimed up to $500 million in assets and between $1 billion and $10 billion in debts. The bankruptcy filing comes just two months after a federal judge ordered Omnicare to pay $948.8 million in penalties and damages after finding the company liable for filing fraudulent claims to the federal government for some prescription drugs. According to the Department of Justice, Omnicare's pharmacies sent medications to people in residential facilities based on "stale, invalid prescriptions" and fraudulently billed Medicaid and Medicare for drugs dispensed without a valid prescription between 2010 and 2018. In a statement, Omnicare president David Azzolina said the lawsuit did not include any allegations of harm to the company's patients and that the government did not allege that patients received anything but the medications they needed when they needed them. "The District Court nevertheless imposed an extreme and, we believe, unconstitutional penalty," Azzolina said. "Given that ruling and a number of other issues facing our business, we now are taking necessary steps to move forward and ensure the continued delivery of safe and reliable pharmacy service to our customers." (Pifer, Healthcare Dive, 9/22; Chapman, Associated Press, 9/23)
  • Texas: VillageMD is selling 32 of its clinics in Texas to Harbor Health, a primary care and specialty clinic group based in Austin. Over the last few years, VillageMD has closed or sold dozens of its clinics as its parent company, Walgreens, worked to cut costs. Currently, VillageMD is operating as a standalone business after Walgreens was acquired by private equity firm Sycamore Partners. Through the deal, Harbor will gain 10 clinics in Austin, 10 in San Antonio, six in El Paso, and six in Dallas, as well as over 80 clinicians. According to Harbor, the acquisition marks the company's expansion into three new markets (San Antonio, El Paso, and Dallas) and helps accelerate its growth strategy by two to three years. "With a broader statewide presence, we are now positioned to serve up to 14 million Texans with care and coverage, up from 1.6 million currently," said Tony Miller, Harbor's cofounder and CEO. (Hudson, Modern Healthcare, 9/18)

C-Suite Cheat Sheet: Fraud and Abuse

Download our cheat sheet to learn about fraud and abuse regulations and how they affect providers and suppliers.


SPONSORED BY

INTENDED AUDIENCE

AFTER YOU READ THIS

AUTHORS

TOPICS

INDUSTRY SECTORS

Don't miss out on the latest Advisory Board insights

Create your free account to access 1 resource, including the latest research and webinars.

Want access without creating an account?

   

You have 1 free members-only resource remaining this month.

1 free members-only resources remaining

1 free members-only resources remaining

You've reached your limit of free insights

Become a member to access all of Advisory Board's resources, events, and experts

Never miss out on the latest innovative health care content tailored to you.

Benefits include:

Unlimited access to research and resources
Member-only access to events and trainings
Expert-led consultation and facilitation
The latest content delivered to your inbox

You've reached your limit of free insights

Become a member to access all of Advisory Board's resources, events, and experts

Never miss out on the latest innovative health care content tailored to you.

Benefits include:

Unlimited access to research and resources
Member-only access to events and trainings
Expert-led consultation and facilitation
The latest content delivered to your inbox

This content is available through your Curated Research partnership with Advisory Board. Click on ‘view this resource’ to read the full piece

Email ask@advisory.com to learn more

Click on ‘Become a Member’ to learn about the benefits of a Full-Access partnership with Advisory Board

Never miss out on the latest innovative health care content tailored to you. 

Benefits Include:

Unlimited access to research and resources
Member-only access to events and trainings
Expert-led consultation and facilitation
The latest content delivered to your inbox

This is for members only. Learn more.

Click on ‘Become a Member’ to learn about the benefits of a Full-Access partnership with Advisory Board

Never miss out on the latest innovative health care content tailored to you. 

Benefits Include:

Unlimited access to research and resources
Member-only access to events and trainings
Expert-led consultation and facilitation
The latest content delivered to your inbox
AB
Thank you! Your updates have been made successfully.
Oh no! There was a problem with your request.
Error in form submission. Please try again.