Year in Review: Omnicare faces fraud charges, an FDA crackdown and personnel changes and moves. Whatever will they do for an encore?

• Last year, Omnicare's #1 guy in Michigan was indicted on 148 charges of fraud.
• A few months ago, Omnicare paid out almost $50 million to settle their whistleblower Medicare fraud claims suit. The company switched brand-name drugs with generic drugs to get more Medicaid dollars, prompting Kentucky Attorney General Stumbo to go on record saying "This company puts profits above patients."
• Last month, Omnicare received a warning letter from the FDA citing the company's past problems complying with FDA safety regulations:
  
  "because of your firm's compliance history, the serious nature of the observed violations, and the significant risk to consumers associated with the CGMP deviations involving potential product contamination and product mix-up. Due to the large number of significant deficiencies cited, we thought it would be useful to group the observations in a systematic approach."
  
  
• Omnicare brought in a new COO last month too, after terminating their last COO's contract several months early.
  
  

What’s next for Omnicare?

Rumors are swirling:

#1 The HMIS division of Omnicare was hit with the announcement that their billing department is moving to Allentown, PA. Employees claim they were promised that no changes would happen, and additional rumors are swirling that HMIS will shut down and move to Annapolis.

#2 Nursing home franchises continue to pull the plug on their OCR agreement.