Caremark last week said it has settled a lawsuit filed by an Atlanta AIDS patient accusing the company and two physicians of charging unconscionable sums for home care.
Michael Alan Booth, who is suffering from AIDS, last week said his previous statements about Caremark "were based on a misunderstanding of the facts as they related to home care provided to me by Caremark."
Mr. Booth also agreed to dismiss his lawsuit against Caremark, Atlanta physicians Michael D. Rankin and Mark L. Tanner, and Howell Mill Pharmacy.
Northbrook, Ill.-based Caremark, in a written statement, said Mr. Booth will return to using its home-care services and that Caremark will pay for his legal fees. Caremark spokesman Les Jacobson declined to elaborate on financial details of the settlement.
Mr. Booth couldn't be reached for comment nor could his attorney, John Matteson.
In April, Mr. Booth filed a lawsuit in Fulton County (Ga.) Superior Court accusing Caremark, Drs. Rankin and Tanner, and the pharmacy with violating federal racketeering laws by overcharging as much as 500% for medically unnecessary services.
"Defendant Caremark developed a fraudulent scheme that it has implemented on a nationwide basis whereby it pays criminal kickbacks to physicians, such as defendants Rankin and Tanner, for unwarranted patient referrals for unconscionable fees and charges," the complaint said.
However, in his Nov. 29 affidavit, Mr. Booth rescinded those remarks, saying "I am personally unaware of any `kickbacks' paid by Caremark or Howell Mill Pharmacy to Drs. Rankin and Tanner or to any other physicians."
He further stated that previous remarks about the defendants were made "in the heat of battle."
News of the settlement came one week after a federal grand jury in Minneapolis added to the list of criminal charges against David R. Brown, M.D., a Minneapolis pediatric endocrinologist with direct ties to Caremark.
The Nov. 23 indictment charges Dr. Brown with seven counts of defrauding Medicaid and other insurance carriers, and four counts of money laundering. Caremark, however, wasn't named in the indictment.
In August, a federal grand jury in Minneapolis returned a separate 51-count indictment against Dr. Brown, Caremark and four others, accusing them of conspiring in an illegal kickback scheme in which Dr. Brown allegedly received $1.1 million in return for patient referrals.
Caremark has denied any wrong-doing.