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Walgreens (Nasdaq: WBAThe U.S. Department of Justice ((DoJ)) announced that CityMD, an urgent care provider backed by ), has agreed to pay more than $12 million to resolve allegations that the company falsely represented government payments related to COVID-19 testing during the pandemic. .
The settlement is as follows One complaint alleges that New York-based CityMD submitted false claims and even sought payments for insured individuals as part of a federal program targeting COVID-19 testing for the uninsured.
The U.S. Department of Justice said CityMD, which operates approximately 177 urgent care facilities in New York and New Jersey, filed these claims against the program or commissioned outside experiments between February 4, 2020, and April 5, 2022. Chambers filed such claims against the program.
“We cannot and will not tolerate the alleged misuse of these funds. Today’s settlement ensures that funds 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 $8.9B, with investment from Cigna (NYSE:CI) Pharmacy Benefits Manager, Evernorth,
