{"id":401913,"date":"2026-04-16T16:56:08","date_gmt":"2026-04-16T16:56:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/401913\/"},"modified":"2026-04-16T16:56:08","modified_gmt":"2026-04-16T16:56:08","slug":"cvss-omnicare-headed-for-bankruptcy-court","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/401913\/","title":{"rendered":"CVS’s Omnicare headed for bankruptcy court"},"content":{"rendered":"

WOONSOCKET, R.I. \u2014 A decade after CVS Health paid nearly $13 billion<\/a> to buy Omnicare, the nursing home pharmacy titan is now headed for a bankruptcy<\/a> auction. It\u2019s the latest chapter of Omnicare\u2019s demise, after it was found liable for fraudulently billing the government and ordered to pay nearly $1 billion<\/a> last year.<\/p>\n

The company has continued operating during bankruptcy, first filed in September 2025<\/a>, and now GenieRx Holdings LLC has proposed paying CVS $250 million in cash for its troubled subsidiary. <\/p>\n

An auction is planned for May 5, overseen by US Bankruptcy Court for the District of Northern Texas. GenieRx\u2019s \u201cstalking-horse\u201d offer sets the floor for any competing offers. <\/p>\n

Omnicare dispenses tens of millions of prescriptions annually to patients in nursing homes and other facilities nationwide. CVS\u2019s acquisition<\/a> of the Cincinnati-based company, first founded in 1981, was the corporation\u2019s attempt to broaden its presence in the specialty pharmacy business as it sought to capitalize on an aging population. And while Omnicare was not directly tied to CVS\u2019s pharmacy benefit management business<\/a>, the deal was expected<\/a> to help strengthen CVS\u2019s negotiating power with drug makers.<\/p>\n

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Omnicare is now the largest long-term care pharmacy services provider in the country. Yet Woonsocket-based CVS has been pursuing a plan to sell Omnicare since 2022.<\/p>\n

When Omnicare first filed for bankruptcy, its attorneys listed assets of at least $100 million and liabilities between $1 billion and $10 billion, according to court documents.<\/p>\n

GenieRx is a joint partnership between private equity firm Milrose Capital LLC<\/a> and health-care investment and management firm Integro Asset Management LLC, which does business as Integro Healthcare Services<\/a>.<\/p>\n

\u201cWe are making meaningful progress in our court supervised process and are pleased to enter into this purchase agreement with GenieRx,\u201d said David Azzolina, Omnicare\u2019s president, in a statement.<\/p>\n

Azzolina said GenieRx\u2019s interest \u201creflects the strength of Omnicare\u2019s clinical expertise\u201d and Omnicare\u2019s customer base.<\/p>\n

In July 2025, a federal judge ordered Omnicare to pay $948.8 million<\/a> in penalties and damages as part of a whistleblower lawsuit claiming the company fraudulently billed the government for invalid drug prescriptions. US District Judge Colleen McMahon said the company filed more than 3.3 million in false claims over an eight-year period starting in 2010.<\/p>\n

A former Omnicare pharmacist in Albuquerque, N.M., first filed the lawsuit against the company in 2015<\/a>. The US Department of Justice later intervened in the case in 2019. Both parties accused Omnicare of improperly billing Medicare, Medicaid, and Tricare prescriptions for patients in assisted-living communities, group homes, and other long-term care facilities without valid prescriptions. <\/p>\n

\u201cFalse claims in the health care industry cost every American,\u201d US Attorney Jay Clayton said<\/a> at the time of the verdict.<\/p>\n

If GenieRx was to acquire Omnicare, it would assume operating liabilities, but the massive fraud judgment and other debts would remain behind in bankruptcy court.<\/p>\n

Alexa Gagosz can be reached at alexa.gagosz@globe.com<\/a>. Follow her @alexagagosz<\/a> and on Instagram @AlexaGagosz<\/a>.<\/p>\n