Froedtert Hospital sues CVS Health alleging fraud and $18M in losses

• Froedtert Hospital is suing CVS Health for allegedly siphoning an estimated $18 million from a federal drug discount program.
• The lawsuit claims CVS manipulated reimbursements from the 340B program, which is intended to help hospitals serving low-income patients.
• CVS Health denies the allegations, calling the complaint “riddled with erroneous accusations” and vowing to defend itself.

Froedtert Hospital is suing CVS Health, alleging the pharmacy chain and its subsidiaries manipulated reimbursements from a federal drug discount program and siphoned off an estimated…

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PROCUREMENT & EXPENDITURE (STOPPING KICKBACKS)

Procurement fraud usually involves inflated invoices or “fictitious” vendors.

• The Three-Way Match: Never pay an invoice unless you have matched the Purchase Order (PO), the Delivery Note (signed), and the Supplier Invoice.
• Vendor Master File Review: Review your vendor list annually. Look for suppliers with the same bank details or physical addresses as your employees.
• Dual Authorization: Implement a “Two-to-Sign” rule for all EFT payments above a certain threshold (e.g., R5,000).
• No “Cashing” of Checks: If you still use physical checks, strictly prohibit “Cash” as a payee and store blank checks in a dual-lock safe.