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Cardinal Health to pay $13M to settle kickback allegations

Kiichiro Sato
Associated Press

Federal authorities say pharmaceutical distributor Cardinal Health Inc. has agreed to pay more than $13 million to resolve allegations that it violated federal law by paying some doctors’ offices kickbacks.

Authorities said Monday that Cardinal Health induced physician practices to purchase medications from Cardinal rather than from competitors by paying those practices in advance of any drug purchases, and not in connection with any specific purchases.

Authorities say the payments were a violation of the Anti-Kickback Statute, which prohibits distributors from offering or paying compensation to induce physicians to purchase drugs for use by Medicare patients.

A message seeking comment was left with Dublin, Ohio-based Cardinal Health.