Cape Girardeau pharmacy owner agrees to massive Medicaid fraud settlement

Friday, August 14, 2009

The owner of a pharmacy headquartered in Cape Girardeau will pay more than $3.9 million to Missouri, Illinois and the federal government in a Medicaid fraud settlement, Missouri Attorney General Chris Koster announced in a news release today.

Noel R. Botsch, owner of Special Design Health Care -- a specialty pharmacy that provides in-home pharmacy services -- allegedly double-billed Medicaid and submitted false claims for payment.

The alleged offenses occurred from October 2002 to June 2006. Prosecutors allege the pharmacy billed Missouri and Illinois Medicaid for more drugs than it purchased, charged for brand name medicine when it dispensed generic, and billed without proper medical authorization.

Reached at his business, Botsch said he disputes the government's contentions and decided to settle to avoid the expense and uncertainty of litigation.

Prosecutors say Botsch and the pharmacy will be monitored for five years.

The settlement, the news release says, is the result of a joint federal and state investigation that started when the federal Office of Inspector General forwarded a complaint to Koster's office.

Pertinent address:

61 Doctors Park, Cape Girardeau, Mo.

Map of pertinent addresses

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