U.S. Attorney Phillip A. Talbert announced that Kaiser Foundation Health System Inc. has paid $850,000 to settle allegations that a Kaiser Permanente pharmacy at 3800 Dale Road in Modesto violated the Controlled Substances Act (CSA) by improperly filling defective prescriptions and by failing to maintain accurate records.
An investigation into a theft of controlled substances at the pharmacy in December 2013 resulted in prosecution of a Kaiser employee on a grand theft charge. It also led to closer scrutiny of the pharmacy by investigators with the Drug Enforcement Administration diversion control unit in Fresno.
The settlement resolves allegations that a large percentage of prescriptions that the pharmacy filled were incomplete, lacking the patient and dosage information required by the CSA’s implementing regulations.
Additionally, the settlement resolves allegations that the pharmacy failed to maintain accurate documentation of incoming and outgoing controlled substances. The investigation identified discrepancies in comparing the pharmacy’s purchase and dispensing records with the actual controlled substances on hand at the pharmacy.
“One purpose of the CSA is to ensure that pharmacies maintain accurate records to minimize the chance of diversion of powerful and potentially addictive drugs, which wreak havoc on our communities and destroy lives,” U.S. Attorney Talbert said. “Large pharmacy chains and health care conglomerates like Kaiser dispense a high volume of controlled substances to customers and members. Strict compliance with the CSA’s recordkeeping provisions by these entities is imperative.”
“Health care providers and pharmacies that don’t fully comply with the CSA give the public the short end of the stick. DEA will hold entities dispensing controlled substances accountable for their actions to protect public health and safety,” stated DEA Special Agent in Charge John J. Martin.
There was no evidence the violations caused harm to patients. Kaiser cooperated with the investigation and has agreed to implement protocols to minimize the chance of future violations.
In a statement Kaiser Permanente said tracking and management of controlled substances is taken seriously at its pharmacies. “Since bringing this matter to the attention of the Department of Justice, we have reviewed the Modesto pharmacy’s documentation and record-keeping of controlled substances, and have taken a number of steps, including instituting additional security controls.”
This case was the product of an investigation by the Fresno DEA Diversion Group. Assistant U.S. Attorney Vincente A. Tennerelli represented the United States in this matter.