VALLEY FORGE, Pa.--(BUSINESS WIRE)--March 29, 2005--PharMerica,
Inc., a subsidiary of AmerisourceBergen Corporation (NYSE:ABC), today
announced a settlement with the U.S. Department of Health and Human
Service's (HHS) Office of the Inspector General (OIG) regarding all
issues related to the OIG's June 2004 administrative action against
PharMerica Drug Systems, Inc. (PDSI) and PharMerica for PDSI's 1997
purchase of Hollins Manor I, LLC, a Virginia-based pharmacy.
Under the terms of the settlement, PharMerica paid $5.975 million
to HHS and entered into a five-year corporate integrity agreement
(CIA) with the OIG. In turn, the OIG provided PharMerica and PDSI with
a full release for the conduct covered by the administrative action,
including an agreement not to pursue the exclusion of PharMerica or
PDSI from participation in Medicare, Medicaid or federal healthcare
programs. Also as part of the settlement, the Company denied any
wrongdoing.
The OIG had demanded $21.8 million in damages and penalties from
PharMerica and PDSI and the companies' exclusion from participation in
federal healthcare programs for 10 years.
"The settlement allows PharMerica to put this matter from the past
behind us," said William Shields, President of PharMerica. "The
settlement's emphasis on corporate integrity is consistent with
PharMerica's policies and its overriding commitment to quality,
compliance and ethical conduct, and does not affect any ongoing
business with any customer or payor, including the federal
government."
The OIG administrative action arose from the 1997 purchase by
PDSI, a PharMerica subsidiary, of Hollins Manor I, LLC. There were no
allegations of patient harm in the action, which was based on an
alleged violation of the Medicare anti-kickback statute resulting from
the purchase. The 1997 purchase predated the acquisition of PharMerica
by Bergen Brunswig and the subsequent merger that created
AmerisourceBergen in 2001.
PharMerica, one of the nation's leading pharmacy providers to the
long-term care setting, supplies medication and related services to
approximately 200,000 nursing home residents in 37 states.
About AmerisourceBergen
AmerisourceBergen(R) (NYSE:ABC) is one of the largest
pharmaceutical services companies in the United States. Servicing both
pharmaceutical manufacturers and healthcare providers in the
pharmaceutical supply channel, the Company provides drug distribution
and related services designed to reduce costs and improve patient
outcomes. AmerisourceBergen's service solutions range from pharmacy
automation, bedside medication safety systems, and pharmaceutical
packaging to pharmacy services for skilled nursing and assisted living
facilities, reimbursement and pharmaceutical consulting services, and
physician education. With more than $48 billion in operating revenue,
AmerisourceBergen is headquartered in Valley Forge, PA, and employs
more than 14,000 people. AmerisourceBergen is ranked #22 on the
Fortune 500 list. For more information, go to
www.amerisourcebergen.com.
Forward-Looking Statements
This news release may contain certain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These statements
are based on management's current expectations and are subject to
uncertainty and changes in circumstances. Actual results may vary
materially from the expectations contained in the forward-looking
statements. Forward-looking statements may include statements
addressing AmerisourceBergen's future financial and operating results.
The following factors, among others, could cause actual results to
differ materially from those described in any forward-looking
statements: competitive pressures; the loss of one or more key
customer relationships; customer insolvencies; changes in customer
mix; changes in pharmaceutical manufacturers' pricing and distribution
policies or practices; regulatory changes; changes in U.S. government
policies (including changes in government policies pertaining to drug
reimbursement); changes in market interest rates; and other economic,
business, competitive, regulatory and/or operational factors affecting
the business of AmerisourceBergen generally.
More detailed information about these and other risk factors is
set forth in AmerisourceBergen's filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for
fiscal 2004.
AmerisourceBergen is under no obligation to (and expressly
disclaims any such obligation to) update or alter any forward looking
statements whether as a result of new information, future events or
otherwise.
CONTACT: AmerisourceBergen Corporation, Valley Forge
Michael N. Kilpatric, 610-727-7118
mkilpatric@amerisourcebergen.com
SOURCE: AmerisourceBergen Corporation