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Walgreens (NASDAQ: AMB), the U.S.-backed urgent care provider CityMD has agreed to pay more than $12 million to resolve allegations that the company falsely claimed government payments related to COVID-19 testing during the pandemic, the U.S. Department of Justice announced. USA (DoJ).
The agreement continues an investigation into allegations that New York-based CityMD, as part of a federal program set aside for COVID-19 testing among the uninsured, submitted false claims seeking payments even for insured people.
CityMD, which operates about 177 urgent care centers in New York and New Jersey, submitted these claims or had outside laboratories submit such claims to the program from February 4, 2020 to April 5, 2022, the department alleged. of Justice.
“The alleged misuse of these funds is something that we cannot and will not tolerate. “Today’s settlement ensures that money that was improperly obtained will be returned to the government,” said U.S. Attorney Philip Sellinger.
CityMD joined Walgreens' (WBA) portfolio in early 2023 after the former's parent company, Summit Health, agreed to be acquired by WBA-backed VillageMD for approximately $8.9 billion with investments from Cigna (New York Stock Exchange:CI) Pharmacy Benefits Manager, Evernorth,
