Omnicare
Omnicare is a United States pharmacy-services company specializing in medication distribution and related services for nursing homes and other long-term-care settings.
Last updated August 26, 2026
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Overview
Omnicare is an American health-care company whose principal business has been the provision of pharmacy services to nursing homes and other long-term-care institutions. Unlike a consumer-facing pharmacy chain, its operating model has centered on institutional customers, recurring prescription fulfillment, medication management, and services adapted to the clinical and administrative requirements of residents in skilled-nursing and assisted-living environments. The company was established in April 1981 through the spinoff of health-care businesses associated with Chemed and W. R. Grace and Company. Over subsequent decades, Omnicare expanded through organic growth and acquisitions, building a substantial position in long-term-care pharmacy. Its scale gave it relationships with nursing-home operators, pharmaceutical manufacturers, government reimbursement programs, and health-care providers. The brand therefore became associated less with retail storefronts and more with behind-the-scenes medication supply and support for institutional care. Omnicare's business has included the dispensing and delivery of prescription medicines, pharmacy consulting, medication packaging, and related clinical or administrative services for long-term-care facilities. Its customers and reimbursement environment have exposed it to complex regulatory requirements, particularly involving Medicare, Medicaid, federal health-care fraud rules, pharmaceutical marketing practices, and competition policy. Several legal matters have shaped the company's public history, including settlements involving alleged kickbacks and a Federal Trade Commission challenge to its proposed acquisition of PharMerica. In 2015, CVS Health acquired Omnicare. The transaction brought Omnicare into the CVS Health corporate group and integrated its long-term-care pharmacy capabilities with CVS Health's broader pharmacy and health-care operations. Omnicare subsequently remained associated with CVS Health as a specialized institutional-pharmacy business rather than as an independent publicly traded company. The brand's strategic identity is consequently defined by specialized medication services for long-term-care providers. Its importance lies in the scale and operational complexity of supplying medicines to institutional populations, where prescriptions may require controlled delivery schedules, facility-level coordination, packaging, documentation, and support for clinical staff. Public information supplied for this entry does not establish a separate current corporate structure, standalone website, or current executive roster, so those fields are left unfilled where verification is unavailable.
History
Omnicare was created in April 1981 through the spinoff of health-care businesses from Chemed and W. R. Grace and Company. From its foundation, the company operated in health care rather than general consumer retail, and it developed a specialization in serving institutional customers. Its long-term-care pharmacy activities focused on supplying medications to nursing homes and supporting the operational requirements of facilities responsible for administering those medications to residents. During the following decades, Omnicare expanded its presence in long-term-care pharmacy through a combination of internal growth and acquisitions. The company became one of the largest providers in its market, with approximately 200 long-term-care pharmacies cited in connection with the Federal Trade Commission's 2012 review of its proposed PharMerica acquisition. Its scale reflected the fragmented nature of institutional pharmacy and the importance of facility relationships, delivery infrastructure, reimbursement administration, and medication-management processes. The company's growth also brought significant regulatory exposure. In 2009, Omnicare paid $98 million to the federal government to settle five whistleblower lawsuits and government allegations concerning kickbacks. One set of allegations involved arrangements with Johnson & Johnson related to recommendations that physicians prescribe Risperdal to nursing-home patients. Omnicare did not admit wrongdoing in that settlement. A separate False Claims Act case involving alleged payments to nursing-home operators was resolved in 2010, when Omnicare paid $19.8 million to the federal government. The case was associated with allegations involving Mariner Health Care and SavaSeniorCare-related nursing-home operations; the nursing-home parties separately reached their own settlement. Competition policy became another major episode in the company's history. In 2012, Omnicare sought to take over PharMerica, a rival long-term-care pharmacy provider. The FTC opposed the transaction, stating that consolidation would reduce price competition and could increase drug costs and Medicare expenditures. The agency's filing described PharMerica as operating 97 long-term-care pharmacies and Omnicare as operating approximately 200, while the combined company would have held about 57 percent of the relevant market. The proposed takeover was terminated after the FTC's opposition. Omnicare also faced a later whistleblower case concerning alleged kickbacks tied to its 2004 acquisition of Total Pharmacy Services. That matter was reportedly settled around 2013, with Omnicare paying $17.2 million and Total Pharmacy's owners paying $5 million. These cases illustrate the legal and compliance risks associated with institutional-pharmacy contracting, pharmaceutical recommendations, and government-funded health-care reimbursement. In 2015, CVS Health acquired Omnicare. The acquisition transferred Omnicare into CVS Health and ended its independence as a listed company. The transaction aligned Omnicare's established long-term-care pharmacy business with CVS Health's broader pharmacy, benefits, and health-care activities. Public reference material identifies Omnicare as continuing as a pharmacy specializing in nursing homes, but the supplied sources do not provide a verified current executive roster, standalone website, detailed product catalog, or independently reported present-day operating footprint.
- 2015
Acquisition by CVS Health
[1]CVS Health acquired Omnicare, making the long-term-care pharmacy business part of the CVS Health group.
- 2012
FTC blocks proposed PharMerica takeover
[1]The Federal Trade Commission challenged Omnicare's proposed hostile acquisition of PharMerica on antitrust grounds, and the transaction was terminated.
- 2010
False Claims Act settlement
[1]Omnicare paid $19.8 million to settle a False Claims Act case involving allegations of improper payments connected with nursing-home pharmacy contracts.
- 2009
Federal kickback-related settlement
[1]Omnicare paid $98 million to resolve five whistleblower lawsuits and related federal allegations; the company admitted no wrongdoing.
- 2004
Total Pharmacy Services acquisition
[1]Omnicare acquired Total Pharmacy Services. The transaction later became the subject of whistleblower allegations concerning alleged kickbacks and a settlement reported around 2013.
- 1981
Omnicare is established through a health-care business spinoff
[1]Omnicare was established in April 1981 through the spinoff of health-care businesses from Chemed and W. R. Grace and Company.
Products and positioning
A specialized institutional pharmacy provider focused on medication distribution and related services for nursing homes and long-term-care organizations.
Institutional pharmacy
Long-term-care pharmacy services
Omnicare's core offering is pharmacy service for nursing homes and related long-term-care facilities. The service involves supplying prescription medicines to institutional customers rather than primarily serving walk-in retail consumers. Facility-oriented fulfillment requires coordination with care providers, prescription administration processes, delivery schedules, and reimbursement documentation.
Prescription fulfillment
Medication dispensing and delivery
The company dispenses and distributes prescription medicines for residents of nursing homes and other long-term-care settings. The supplied reference material does not identify a distinct branded dispensing platform, but describes Omnicare as a pharmacy specializing in nursing homes.
Clinical and administrative pharmacy services
Pharmacy consulting and medication support
Omnicare's institutional-pharmacy role includes services associated with medication management and support for long-term-care facilities. Specific current service packages are not detailed in the available reference material, so this entry describes the category rather than a separately verified product name.
Controversies
2019
DOJ sues Omnicare and CVS over prescription billing allegations
The U.S. Attorney for the Southern District of New York sued Omnicare and parent CVS Health, alleging that Omnicare fraudulently billed federal health care programs for drugs dispensed on expired or otherwise invalid prescriptions. CVS denied the allegations and said it would defend the case.
2013
Settlement related to Total Pharmacy Services acquisition
A whistleblower lawsuit concerning alleged kickbacks associated with Omnicare's 2004 acquisition of Total Pharmacy Services was reportedly resolved with a $17.2 million payment by Omnicare and a separate $5 million payment by Total Pharmacy's owners.
2012
Antitrust challenge to PharMerica takeover
The FTC sued to stop Omnicare's hostile takeover of PharMerica, alleging that the merger would create excessive concentration in long-term-care pharmacy and could increase prices and government spending. The proposed acquisition was terminated.
2010
False Claims Act case involving nursing-home operators
A case brought under the False Claims Act alleged that Omnicare paid nursing-home operators to secure pharmacy business, potentially implicating Medicare and Medicaid reimbursement. Omnicare settled with the federal government for $19.8 million; related nursing-home parties reached separate settlements.
2009
Federal kickback allegations and $98 million settlement
Omnicare paid $98 million to settle five whistleblower lawsuits and government charges alleging that it had paid or solicited kickbacks. The allegations included claims involving Johnson & Johnson and recommendations of Risperdal for nursing-home patients. Omnicare admitted no wrongdoing.
Brand decisions
2015
Join CVS HealthM&ABackground
CVS Health sought to expand its health-care and pharmacy capabilities through the acquisition of Omnicare, a large provider serving nursing homes and other long-term-care institutions.
Action taken
CVS Health acquired Omnicare, bringing the company into its corporate group.
Aftermath
Omnicare ceased to operate as an independent publicly traded company and continued as a specialized long-term-care pharmacy business within CVS Health.
2012
Terminate proposed PharMerica acquisitionM&ABackground
Omnicare pursued a hostile takeover of PharMerica in the long-term-care pharmacy market. The FTC argued that the combination would materially reduce competition and increase costs.
Action taken
The proposed takeover was terminated following the FTC's opposition and antitrust litigation.
Aftermath
Omnicare remained an independent long-term-care pharmacy provider until its later acquisition by CVS Health.
Recent events
Reported
NCDHHS and Omnicare partner on nursing-home testing[4]
The North Carolina Department of Health and Human Services and Omnicare, a CVS Health company, announced that they would make facility-wide coronavirus testing available to nursing-home residents and staff beginning in July 2020.
Reported
CVS Health partners with Pennsylvania agencies on nursing-home testing[5]
CVS Health partnered with Pennsylvania agencies to offer free COVID-19 testing at skilled nursing facilities statewide. Omnicare, a CVS Health company, was set to administer up to 50,000 tests beginning the week of June 29.
Reported
Federal government sues CVS over Omnicare prescription refills[3]
The U.S. Department of Justice joined a legal case accusing CVS Health’s Omnicare business of dispensing drugs on expired or otherwise invalid prescriptions and fraudulently billing government-funded programs. CVS Health said the claims had no merit and that it would defend the case.
Reported
DOJ sues Omnicare and CVS over prescription billing allegations[2]
The U.S. Attorney for the Southern District of New York sued Omnicare and parent CVS Health, alleging that Omnicare fraudulently billed federal health care programs for drugs dispensed on expired or otherwise invalid prescriptions. CVS denied the allegations and said it would defend the case.
Sources7 sources
- 1Omnicareen.wikipedia.org
- 2DOJ sues Omnicare and CVS over prescription billing allegationspbn.com
- 3DOJ sues Omnicare and CVS over prescription billing allegationstoronto.citynews.ca
- 4NCDHHS与Omnicare合作为养老院提供检测wect.com
- 5CVS Health 与宾夕法尼亚州机构合作开展养老院检测timesonline.com
- 6DOJ sues CVS over ‘stale’ Omnicare prescription refillsdetroitnews.com
- 7U.S. sues CVS for fraudulently billing Medicare, Medicaid for invalid prescriptionsyahoo.com
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