Apparently, we now know what one of the criteria is not considered by JobsOhio:  has the company been accused of millions of Medicaid fraud?

According to the Cincinnati Enquirer in 1998, OmniCare moved out of the Cincinnati area to move to northern Kentucky to the new RiverCenter II office complex being built in Covington, Kentucky right off the Ohio River:

In November, the Kentucky Economic Development Finance Authority approved a $4.1 million package of tax incentives to lure Omnicare from its current headquarters in Chemed Center to Northern Kentucky.

[Source: Cincinnati Enquirer, (May 3, 1997) “Omnicare moving to N.Ky.”

Fast forward to today:

But it’s a loss for Northern Kentucky as the Fortune 500 firm will move its good-paying jobs out of a riverfront high-rise in Covington to a downtown office tower less than a mile, but a whole state, away.

Enticing Omnicare to move is more than $8 million in tax breaks from Ohio and Cincinnati.

[Source: Cincinnati Enquirer, (Sept. 19, 2011) “Omnicare leaving Covington, moving to Cincinnati.”

Anyone seeing a disturbing pattern here? Anyone want to guess what the headline will be thirteen years from now?

$8 million in tax breaks, and that’s not all:

Convergys Corp. owns Atrium One, and bought it in 2004 with the help of $20 million in city grants. That allowed landlord Convergys to offer the space at bargain prices, he said.

“It became as close to free space as anything you can get,” McGraw he said.

You’ve got that right.  Thanks to corporate welfare to the commercial landlord, Convergys Corp., which posted a $32 million profit in the second quarter this year (not revenues, profit), they’ve gotten so much government assistance that they are given Omnicare virtually free rent.

Still, it’s five hundred new jobs in Cincinnati, and that will help it’s tax base.

Omnicare will receive job creation tax credits from Ohio worth $6 million over seven years. It will receive an income tax break from Cincinnati worth $2.4 million over seven years.

Um, well, okay.

Well, this is a health care company, so there’s got to be a warm fuzzy upside, right?

Soon after Figueroa took over a struggling Omnicare in December, he made it known that he wanted to cut costs, consolidate operations and improve morale at a company that had been target of several investigations and lawsuits.

What kind of lawsuits?  I mean, I’m a lawyer, so you can’t really be surprised that a company this big has been sued.

How bad could it be?

According to the Columbus Dispatch, they’ve had a little problem called Medicaid fraud:

The company agreed to pay the state of Michigan $52.5 million in 2006 on accusations of Medicaid fraud, the largest in state history. Specialized Pharmacy Services Inc., a subsidiary of Omnicare, also was involved; its president, Daniel Lohmeier, was charged with 148 felony counts, each punishable by up to four years in prison. He pleaded no contest to reduced charges.

Last year Omnicare agreed to pay $21.1 million to settle a whistleblower lawsuit, $11.6 million to Michigan and $9.5 million to Massachusetts. The states alleged Omnicare defrauded Medicaid programs by overcharging the agency for drugs.

Omnicare denied the allegations and isn’t acknowledging any liability.

The company also paid $385,000 to David Kammerer, who filed the initial lawsuit against Omnicare in August 2003, for his expenses and attorney’s fees.

That’s a ton of money for whistleblower claims that the company claims has no merit.   If you have a certain criminal convictions, you can’t get government assistance for housing in Cincinnati, but this state line hopping company can get millions in tax breaks and incentives, practically free rent, even though it’s been spending millions to settle multiple claims of Medicaid fraud.  And it gets that assistance from the State of Ohio, which administers Medicaid.

Congratulations, Governor Kasich.

 
  • Fotogirlcb2002

    This was a crack up for me.
    In one sentence they say –new jobs and in another they say the employees are transitioning to Cinn.
    It a company moving  here for a tax break and bring their own people with them. I figure a lot of them live this side of the river anyhow.
    I only see a small help to Cinn. they will get some tax revenues —  the rest went in some pockets.
    Yet Chiquita hasnt gotten any help from the Gov.   
    and the bottom line — Where are the new jobs?

  • really is it a surpise to anyone.

  •  Excellent point –>”It a company moving  here for a tax break and bring their own people
    with them. I figure a lot of them live this side of the river anyhow. ”

    Just like Kasich claims to have “created” jobs at American Greetings, Bob Evans, Wendy’s, Marathon etc…

    Let’s not forget about Kasich blurting out of the blue that he was going to give a hospital 2 million….Nichols tried to cover, but had to admit that they had no clue where they would get the money…but they would find it…

    Kasich is writing out corporate welfare checks like they are a pad of sticky notes….

    I wonder if Greg could figure up how much money Kasich has given away in grants, tax breaks etc. to all these corporate vampires and divide it by the number of jobs ACTUALLY CREATED….not “saved”…and I use quotes on “saved” because the corporate vampires have learned that all they have to do to make a quick buck is to pay some corporate lackie to draw up a fake proposal to move out of state….then give good ole’ Kasich a call and he will write them out a welfare check off of his pad of sticky notes PRONTO!!….then he will call a press conference and claim to have “created” more jobs…..but unemployment will continue to rise….but that’s not Kaisch’s fault….noooooo….that will be blamed on Obama….and public employees….since he has finally admitted we are the enemy and that he is at war with us…he was spoiling for this fight LONG before he got elected…this is all by design people…he planned this all out years ago…think about the irony here…his tactic is to create a crisis…then claim the people he victimized are to blame for the crisis…i.e….he puts his seal of approval on Lehman Bros selling toxic assets to OPERS by introducing the brokers from Lehman to OPERS investment executives, knowing full well that they were peddling toxic assets…it costs OPERS $480 million when Lehman folds…..fast forward…..he is now claiming that OPERS is underfunded and has made “promises that they can’t keep”….WHY????….one GLARING reason that OPERS is struggling is because of the Lehman losses!!…you think this is coincidental?…I don’t…

    One more….Kasich DRASTICALLY cuts funding to cities, counties and townships….and then he runs a HUGE smear campaign to blame the PUBLIC EMPLOYEES for cities, counties and townships not being able to balance their budgets?????….Kaisch is the reason for the crisis….not US!!!

    Sorry for the rant….I just needed to get that out….

  • Adrienne

    Doesn’t everyone understand that big biz can make money without creating jobs? Tax cuts, rebates, deregulation have just given the rich the money that it takes to turn this state and the entire country into a big corporation run by evil rich people.

    Welcome to the Corporates States of America where everyone is a wage slave, thanks to the rotten rich and their bought off minions the rotten radical  TGOPers.

  • Corrupt thieves. They sound like exactly the kind of people Czar Kashitch I would want to attract to Ohio. He probably gets lonely.

  • Anonymous

    I wonder how many teachers could have been hired for that $8 million plus whatever the “as close to free space as you can get” office space is worth?

  • Anonymous

    I was wondering this too. Obviously, a move across the river means most employees — who probably already are split between Ohio and Kentucky residents — are going to stay exactly where they are. So the added amount in taxes isn’t going to be that spectacular, particularly if the company itself is getting tax breaks.

  • Adrienne

    Good question. But since the rich are too poor and the poor are too rich according to the rotten R’s, it doesn’t matter.

  • Anonymous

    Hey, if RobsOhio keeps on #winning like this, pretty soon those emails in your spamcatcher will start to read, “Dear Sir or Madam. I am writing this on behalf of a Wealthy Ohio Prince who is currently in exile in Kentucky and has a fortune of 38 BRAZILLION he is unable to access in Ohio. For the small confidence act of the number of your bank account, he will wire the majority of this fortune directly into your bank account, less a small fee…”

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