Salud Para La Gente, a nonprofit network of primary care clinics serving low-income individuals and families in Santa Cruz County and Monterey County, has agreed to pay $750,000 to resolve allegations that it submitted false claims for payment to the Medicaid program involving misbranded contraceptives, according to a May 6 announcement.
The settlement addresses concerns about patient safety and integrity in federal health programs. The United States alleged that between May 17, 2017, and Sept. 11, 2020, Salud purchased misbranded Nexplanon from an unlicensed wholesaler and administered it to Medicaid patients. The organization then allegedly submitted false claims by using incorrect National Drug Code numbers for both the drug and its administration.
“Patient safety must be at the forefront of medical decision-making,” said United States Attorney Craig H. Missakian. “Using misbranded drugs jeopardizes public health and constitutes a serious False Claims Act violation. We will continue to hold violators accountable.”
Special Agent in Charge Robb R. Breeden of the U.S. Department of Health and Human Services Office of Inspector General said: “It’s clearly dangerous and unethical for health care providers to administer misbranded drugs obtained from unlicensed sources to their patients. Working with our law enforcement partners, HHS-OIG will continue to aggressively protect the health and well-being of patients and the integrity of federal health care programs.”
Assistant U.S. Attorney Michelle Lo handled this matter as part of a coordinated effort among the U.S. Attorney’s Office for the Northern District of California, HHS-OIG, and FDA’s Office of Criminal Investigations.
The Justice Department serves as the principal federal agency for law enforcement with more than 115,000 employees operating across the United States and internationally; it focuses on upholding rule of law while safeguarding civil rights according to its official website.
Officials emphasized that all claims resolved by this settlement are allegations only; there has been no determination of liability.
