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Tuesday, August 19, 2025

CVS’ Omnicare unit ordered to pay $949M in whistleblower fraud case; workplace mental health at risk; new AI tool outperforms Big Tech in reading chest X-rays – Morning Medical Update - Medical Economics

Key Takeaways

  • Omnicare, a CVS unit, must pay $949 million for submitting over 3.3 million false claims to federal health programs.
  • Budget cuts to NIOSH under the Trump administration risk stalling mental health progress in high-risk workplaces.

A federal judge has ordered CVS Health’s Omnicare unit to pay nearly $949 million for improperly billing Medicare, Medicaid and Tricare for invalid prescriptions over an eight-year span. The penalty stems from a whistleblower lawsuit filed by a former pharmacist and joined by the government. U.S. District Judge Colleen McMahon ruled Omnicare knowingly submitted over 3.3 million false claims and failed to fix the issue, even after CVS acquired it in 2015. CVS said it will appeal, calling the case a “technical” recordkeeping issue.

A federal agency central to improving mental health in high-risk workplaces is facing deep staffing and funding cuts under the Trump administration, raising alarms among public health experts. The National Institute for Occupational Safety and Health (NIOSH), which helped launch key programs supporting construction workers in recovery and hospital staff facing burnout, has been gutted — jeopardizing research, grants and national campaigns. Advocates warn that private industry alone cannot fill the gap, and that the rollback may delay urgently needed reforms, with serious consequences for worker safety and well-being.

Researchers at Arizona State University have developed Ark+, an open-source AI tool...



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