Merck Pays $400 Million In National Medicaid Fraud Settlement;
New Investigation Model Ends Seven-Year Qui Tam Whistleblower Case
 

Free Drug Kickbacks

Merck's Free Stock Bottle Give-Aways

One of Mr. Steinke's and Nevada's allegations was that Merck gave away large quantities of free drugs as incentives or kickbacks to physicians and hospitals.

The Nevada complaint provides examples of Merck's give-aways and their monetary value.

DATEHOSPITAL / HMO and CITYSTDRUG# TABLETSVALUE (IN $)
01/05/01Palos Community. Hospital, Orland ParkILZocor®3,60013,896.00
08/04/99Advocate Health, FrankfortILVioxx®2,8805,932.80
10/20/00University of Chicago Hospital, ChicagoILVioxx2,1605,319.00
01/05/98BCBS, ChicopeeMAZocor12,60044,226.00
04/25/01Bay Medical. Center, Bay CityMIZocor2,16010,260.00
02/24/98Cooper University. Medical Center, CamdenNJZocor1,8006,318.00
01/07/99University. of New Mexico Hospital, AlbuquerqueNMZocor3,60013,230.00
08/27/99Shadyside Hospital, PittsburghPAVioxx2,5205,191.20
10/13/00LDS Hospital, Salt Lake CityUTZocor1,4405,328.00

Free stock bottles of Merck drugs were not complimentary samples given to physicians to test a new drug, or to tide over patients until their prescriptions were filled. First, the quantities were too large. Second, the Merck drugs had been on the market for years and already had been used by many of these institutions. No evaluation of the drugs reasonably would be needed, or even possible.