Lynn Hill: /* NHS £400m rip-off? */

2008-04-30T14:41:05Z

NHS £400m rip-off?

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2008-04-30T14:39:59Z

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Goldshield Group

==NHS £400m rip-off?==
In 2002, The Serious Fraud Office (SFO) began an investigation 'into a suspected conspiracy to defraud the NHS in relation to prices charged by suppliers for prescribed penicillin based antibiotics and warfarin between 1st January 1996 and 31st December 2000'<ref>Serious Fraud Office [http://www.sfo.gov.uk/news/prout/pr_510.asp?id=510 Suspected fraud on the National Health Service] Press release 10th April 2002. Accessed 4th April 2008</ref>.

The six pharmaceutical companies being investigated were:

* [[Generics UK Ltd]].
* [[Kent Pharmaceuticals Ltd]].
* [[Regent-GM Laboratories Ltd]].
* [[Goldshield Group Plc]].
* [[Norton Healthcare Ltd]] - a subsidiary of [[Ivax Corporation]]
* [[Ranbaxy (UK) Ltd]] - a subsidiary of [[Ranbaxy Laboratories Ltd]]

The SFO later (27th April 2006) reported<ref>Serious Fraud Office [http://www.sfo.gov.uk/news/prout/pr_466.asp?id=466 Fraud on the National Health Service. Appearance at Magistrates Court] Accessed 4th April 2008</ref> that nine persons appeared in court on 'charges of conspiracy to defraud the National Health Service' along with 5 Companies (including Norton Healthcare) 'on conspiracy to defraud charges'. The 'persons' were [[Jonathan Raymond Close]] and [[Nicholas Mark Foster]] (both formerly of Norton Healthcare Limited) alongside [[Denis William O’Neill]] and [[John Stephen Clark]] (of [[Kent Pharmaceuticals Limited]]), [[Luma Auchi]] (formerly of [[Regent-GM Laboratories]]), [[Michael John Frederick Sparrow]] (formerly of [[Generics (UK) Limited]]), [[Anil Kumar Sharma]] (formerly of [[Ranbaxy (UK) Limited]]), [[Ajit Ramanlal Patel]] and [[Kirti Vinubhai Patel]] (of [[Goldshield Group Plc]]). On the 9th April 2006 (shortly before the companies appearance in court), Medical News Today reported <ref>Medical News Today [http://www.medicalnewstoday.com/articles/41266.php Norton Settles NHS Claim For 'Price Fixing', UK] 9th April 2006. Accessed 4th April 2008</ref> that The Department of Health and Norton Healthcare Ltd and Norton Pharmaceuticals Ltd had 'jointly announce settlement of the claims'. Norton did not admit any liability in relation to the charges but did pay compensation to the NHS for the amount of £13.5 million. In the report, Jim Gee (Director of Counter Fraud Services for the Department of Health) stated that "Norton is the third of the defendant companies to have recognised the strength of the claim made by the NHS..." The £13.5million was paid out to the NHS in England and Wales<ref>BBC News [http://news.bbc.co.uk/2/hi/uk_news/scotland/7373904.stm Drug group backs £2.8m settlement]. 30th April 2008. Accessed 30th April 2008</ref>.

It appears that the case was due to go to trial in September 2008<ref>Livingstone, T. & Shipton, M. (2008) 'I made a mistake but it was an innocent mistake'. The Western Mail. 25th January 2008.</ref> in what The Guardian describes as 'the biggest prosecution for alleged fraud ever launched in the United Kingdom'<ref>Monbiot, G. (2008) [http://www.guardian.co.uk/commentisfree/story/0,,2252536,00.html 'This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party  to the super-rich']. 5th February 2008</ref>. However, in April 2008, it was announced that 'A drugs group has agreed a £2.8m settlement with the Scottish Government and health boards over the alleged price fixing'. Norton is reported to have agreed to the £2.8 million payment as a 'full and final settlement' and without admiting any liability<ref>BBC News [http://news.bbc.co.uk/2/hi/uk_news/scotland/7373904.stm Drug group backs £2.8m settlement]. 30th April 2008. Accessed 30th April 2008</ref>. The report also mentions that the [[Goldshield Group]] paid £750,000 after agreeing a similar deal in March 2008.

In June 2007, The BBC reported that Goldshield had agreed to pay a £4million settlement as a 'full and final settlement' without any admission of liability<ref>BBC News [http://news.bbc.co.uk/1/hi/health/6230046.stm 'Alleged drug cartel' settlement] 22 June 2007. accessed 30th April 2008</ref>. The details of how they then went on to agree to pay the £750,000 in March 2008 is not immediately clear.

==References==
<references/>

[[Category:Pharmaceutical Industry]]

@@ Line 17: / Line 17: @@
 It appears that the case was due to go to trial in September 2008<ref>Livingstone, T. & Shipton, M. (2008) 'I made a mistake but it was an innocent mistake'. The <i> Western Mail</i>. 25th January 2008.</ref> in what <i>The Guardian</i> describes as 'the biggest prosecution for alleged fraud ever launched in the United Kingdom'<ref>Monbiot, G. (2008) [http://www.guardian.co.uk/commentisfree/story/0,,2252536,00.html 'This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party  to the super-rich']. 5th February 2008</ref>. However, in April 2008, it was announced that 'A drugs group has agreed a £2.8m settlement with the Scottish Government and health boards over the alleged price fixing'. Norton is reported to have agreed to the £2.8 million payment as a 'full and final settlement' and without admiting any liability<ref>BBC News [http://news.bbc.co.uk/2/hi/uk_news/scotland/7373904.stm Drug group backs £2.8m settlement]. 30th April 2008. Accessed 30th April 2008</ref>. The report also mentions that the [[Goldshield Group]] paid £750,000 after agreeing a similar deal in March 2008.
-In June 2007, The BBC reported that Goldshield had agreed to pay a £4million settlement as a 'full and final settlement' without any admission of liability<ref>BBC News [http://news.bbc.co.uk/1/hi/health/6230046.stm 'Alleged drug cartel' settlement] 22 June 2007. accessed 30th April 2008</ref>. The details of how they then went on to agree to pay the £750,000 in March 2008 is not immediately clear.
+In June 2007, The BBC reported that Goldshield had agreed to pay a £4million settlement on a 'full and final basis and without admission of liability'.<ref>BBC News [http://news.bbc.co.uk/1/hi/health/6230046.stm 'Alleged drug cartel' settlement] 22 June 2007. accessed 30th April 2008</ref>. The details of how they then went on to agree to pay the £750,000 in March 2008 is not immediately clear.
 ==References==

Goldshield Group - Revision history

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