Merck
Pays $400 Million In National Medicaid Fraud Settlement;
New Investigation
Model Ends Seven-Year Qui Tam Whistleblower Case

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Free Drug Kickbacks

Merck's Free Stock Bottle Give-Aways

One of Mr. Steinke's and Nevada's allegations was that Merck gave away
large quantities of free drugs as incentives or kickbacks to physicians
and hospitals.

The
Nevada complaint provides examples of Merck's give-aways and their
monetary value.

DATE

HOSPITAL / HMO and CITY

ST

DRUG

# TABLETS

VALUE (IN $)

01/05/01

Palos Community. Hospital, Orland Park

IL

Zocor®

3,600

13,896.00

08/04/99

Advocate Health, Frankfort

IL

Vioxx®

2,880

5,932.80

10/20/00

University of Chicago Hospital, Chicago

IL

Vioxx

2,160

5,319.00

01/05/98

BCBS, Chicopee

MA

Zocor

12,600

44,226.00

04/25/01

Bay Medical. Center, Bay City

MI

Zocor

2,160

10,260.00

02/24/98

Cooper University. Medical Center, Camden

NJ

Zocor

1,800

6,318.00

01/07/99

University. of New Mexico Hospital, Albuquerque

NM

Zocor

3,600

13,230.00

08/27/99

Shadyside Hospital, Pittsburgh

PA

Vioxx

2,520

5,191.20

10/13/00

LDS Hospital, Salt Lake City

UT

Zocor

1,440

5,328.00

Free stock bottles of Merck drugs were not complimentary samples given
to physicians to test a new drug, or to tide over patients until their
prescriptions were filled. First, the quantities were too large. Second,
the Merck drugs had been on the market for years and already had been used
by many of these institutions. No evaluation of the drugs reasonably would
be needed, or even possible.

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