Pharma Exec, Feds Reach Agreement After Kickbacks To Main Line Doctor

BALA CYNWYD, PA — The former chief marketing officer of a Delaware pharmacy company has reached an agreement with federal authorities after she was alleged to have given kickbacks to a Main Line doctor.

United States Attorney Jacqueline C. Romero said Carla Sparkler, former Chief Marketing Officer of BioTek reMEDys Inc., agreed to resolve allegations that she violated the False Claims Act by paying kickbacks to patients and physicians and waiving co-pays to protect BioTek’s revenue stream.

Among those physicians was Dr. David Tabby, who operated a neurology practice in Bala Cynwyd.

The settlement resolves allegations that under Sparkler’s leadership, BioTek provided remuneration in the form of gifts, dinners, and free administrative and clinical support services to physicians, including Tabby, to induce those physicians to refer patients to BioTek.

The government also alleged that Tabby knowingly solicited and accepted this remuneration in exchange for referring numerous patients to BioTek. Tabby has separately paid $480,000 to settle these allegations, based on his ability to pay.

Biotek and its chief executive officer, Chaitanya Gadde, previously agreed collectively to pay $20 million based on their ability to pay to resolve allegations that they violated the False Claims Act by paying kickbacks to patients and physicians to protect Biotek’s revenue stream.

Sparkler agreed to a six-year federal healthcare exclusion, which will prohibit her from participating in any federally funded health care program, such as Medicare.

When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance or a deductible.

Congress included copay requirements in the Medicare program in part to serve as a check on health care costs. The Federal Anti-Kickback Statute prohibits the offering, paying, soliciting or accepting, directly or indirectly, of any remuneration – which includes money or any other thing of value – to refer or arrange for the referral of items or services payable by any federal health care program. This prohibition extends to companies that routinely waive the copays of Medicare patients without determination of financial need. The Anti-Kickback Statute also extends to the payment of remuneration to physicians in exchange for patient referrals.

In its Complaint in Intervention, the United States alleged that, from at least August 2015 through May 2020, Sparkler served as the Chief Marketing Officer of Biotek. BioTek, a specialty pharmacy that offers drugs and infusion services, routinely waived the copayments of Medicare and TRICARE patients to induce those patients to purchase its drugs and services. Many of the specialty drugs offered by BioTek were expensive and required patients to pay large copays. The government alleged that BioTek sought to avoid deterring patients from purchasing its drugs and services by engaging in a scheme, orchestrated, and implemented by Sparkler, to routinely waive these large copays, without regard for whether the patients were experiencing financial hardship.