New York’s largest pharmacy chain got a dose of nasty medicine — a $370,000 fine for a Medicaid kickback scheme.

Federal prosecutors today said they reached a settlement with Duane Reade over its express pharmacy kiosk program which generated high volumes of Medicaid prescriptions through an illegal scheme that paid doctors exorbitant “rents” to put the kiosks in their offices.

Duane Reade did not consider the fair market value of the physical space occupied by the kiosks, and in violation of the federal and state Anti-Kickback statutes, paid higher “rents” to physicians.

As a result, claims for payment submitted to Medicaid under the arrangement were considered false.