ON JULY 28,1977, Revco Drug Stores, Inc., was found guilty of a computer-generated double-billing scheme that defrauded the Ohio Department of Public Welfare out of $500,000 in Medicaid funds. At the time, Revco was one of the largest drug retailers in the United States with 825 stores in 21 states.

This case was uncovered by accident in May 1976 when a pharmacist in one of Revco's Ohio stores was puzzled by the large number of prescriptions for narcotics and tranquilizers written by a local podiatrist. A vice president at Revco headquarters called the pharmacy board in support of a thorough inquiry; the pharmacy board contacted the Ohio Department of Public Welfare and by August 1976, the Revco records and the Public Welfare records for this ...

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