Omnicare
| Company type | Subsidiary |
|---|---|
| Industry | Healthcare, Pharmaceutical Services |
| Predecessor | Chemed, W. R. Grace and Company (divestiture) |
| Founded | April 1981 |
| Fate | Acquired by CVS Health in 2015; filed for Chapter 11 bankruptcy in 2025 |
| Headquarters | Cincinnati , United States |
Area served | United States |
| Parent | CVS Health |
Omnicare, Inc. is a healthcare organization headquartered in the United States, established in April 1981 as a divestiture from Chemed and W. R. Grace and Company. The company focuses on providing pharmaceutical services to nursing home facilities and was integrated into CVS Health following its acquisition in 2015.
Controversy
In 2012, the Federal Trade Commission (FTC) initiated legal action to prevent Omnicare's aggressive acquisition attempt of competitor PharMerica, expressing concerns that the merger would diminish market competition, elevate drug prices, and increase Medicare expenditures. At that time, PharMerica managed 97 long-term care pharmacies, while Omnicare operated approximately 200. Completion of the transaction would have resulted in Omnicare controlling a 57% share of the market, significantly outpacing its closest rival. The FTC's opposition led to the abandonment of the proposed deal.
In 2009, Omnicare resolved five whistleblower claims involving allegations of receiving kickbacks from pharmaceutical companies such as Johnson & Johnson to encourage the use of medications like Risperdal within nursing homes, agreeing to a $98 million settlement without admitting liability.
Beginning in 2006, healthcare businessman Adam B. Resnick filed a lawsuit against Omnicare under the False Claims Act, accusing the company of offering kickbacks to nursing home operators to secure contracts, constituting fraud against Medicare and Medicaid programs. Reports indicate Omnicare disbursed $50 million to owners of Mariner Health Care Inc. and SavaSeniorCare in exchange for exclusive pharmacy service agreements.
The litigation initiated by Resnick was settled in 2010 with Omnicare paying $19.8 million, while Mariner and SavaSeniorCare contributed $14 million in settlements. A subsequent whistleblower case concerning kickbacks tied to Omnicare’s 2004 acquisition of Total Pharmacy Services was resolved approximately in 2013, with Omnicare paying $17.2 million and Total Pharmacy proprietors settling for $5 million.
In 2025, a federal jury found Omnicare guilty of improper billing practices involving Medicaid, Medicare, and Tricare between 2010 and 2018, resulting in CVS being ordered to pay a $949 million penalty. Following this verdict, Omnicare filed for Chapter 11 bankruptcy protection in September 2025 to address ongoing litigation challenges.
External links
- Omnicare v. NCS Healthcare – Significant legal case concerning anti-takeover measures.
- Articles with short description
- Companies formerly listed on the New York Stock Exchange
- Health care companies based in Ohio
- Pharmacy benefit management companies based in the United States
- Specialty drugs
- CVS Health
- Companies based in Cincinnati
- American companies established in 1981
- Health care companies established in 1981
- 1981 establishments in Ohio
- 1980s initial public offerings
- 2015 mergers and acquisitions
- Corporate spin-offs
- Companies that filed for Chapter 11 bankruptcy in 2025