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Healthcare technology company Omnicell Inc., a contractor for the U.S. Department of Veterans Affairs (VA), has agreed to pay more than $4.3 million to resolve allegations of fraudulent overbilling, federal prosecutors announced Wednesday.

The settlement follows a qui tam False Claims Act complaint filed in 2023 by Wendy Ballard, a former Omnicell employee. The U.S. government intervened in the case in April.

According to the U.S. Attorney's Office for the Eastern District of Washington, Omnicell identified and corrected pricing errors related to orders under a contract requiring products to be provided at set or discounted prices. However, the company did not always timely fix these issues or verify if all government customers affected were refunded.

Richard R. Barker, Acting U.S. Attorney for the Eastern District of Washington, emphasized the importance of accurate billing practices for companies contracting with the VA and federal government. “I am grateful that Omnicell quickly accepted responsibility and has taken steps to comply with its billing obligations going forward,” Barker said.

Under the settlement, nearly $2.2 million will be returned to the VA, and whistleblower Wendy Ballard will receive approximately $786,000.

The case, United States of America ex rel. Wendy Ballard v. Omnicell Inc., case number 2:23-cv-00240, is pending in the U.S. District Court for the Eastern District of Washington.