It Knew Its System Was Overcharging VA. It Fixed Orders One at a Time.

Omnicell’s pricing system overcharged VA for six years. When customers flagged a wrong price, it credited that order — but never fixed the system, and never checked who else was owed a refund. $4.37M; half designated as restitution to VA.

From January 2017 to February 2023, Omnicell sold and leased medical device hardware and software to VA under contract prices. Per the settlement, Omnicell sometimes issued credits when customers flagged wrong prices on individual orders.

What it did not do: timely fix the known pricing problems in its sales system as a whole, or analyze whether other previously overcharged federal customers were owed refunds. A former employee’s August 2023 qui tam complaint brought the matter to DOJ.

Of the $4,366,660, exactly $2,183,330 is designated restitution to be returned to VA. A civil settlement resolving claims of fraudulent overbilling; the page reports it as such.

"the VA OIG will actively investigate allegations involving contractors overbilling for products provided to VA"
— U.S. Attorney’s Office, Eastern District of Washington

Source: U.S. Attorney’s Office, Eastern District of Washington. Case file in the VA Fraud case files — part of the VA Fraud record. Cases are published as the courts decided them; amounts are stated as the Justice Department states them (billed, stolen, or ordered in restitution, as labeled).