Pharmacy Surrenders DEA Registration, Agrees to Fine to Resolve Opioid Allegations

The US Attorney’s Office for the Eastern District of Pennsylvania has announced a settlement to resolve allegations against Professional Pharmacy & Convalescent Products, Ltd., a Pottstown, PA, pharmacy.

Government Allegations

The government alleged that that pharmacy had improperly dispensed opioids and other controlled substances in violation of the Controlled Substances Act (CSA). The CSA specifies that pharmacies registered with the Drug Enforcement Administration (DEA) may dispense controlled substances to patients only with a valid prescription. A prescription is considered valid if it is issued for a legitimate medical purpose and in the usual course of professional practice.

The Department of Justice alleged that between June 1, 2018 and March 4, 2024, Professional Pharmacy illegally dispensed controlled substances without valid prescriptions, including oxycodone.

Compounding this illicit activity, the pharmacy was also alleged to have billed Medicare and Medicaid for the illegal prescriptions. In mid-July 2024, after the pharmacy surrendered its DEA registration, a settlement was announced to resolve the case with the government, requiring the pharmacy to pay $150 000.

“Federal law imposes obligations on pharmacies like Professional to only dispense controlled substances when appropriate,” said US Attorney Jacqueline C. Romero, in a press release. “The law is critical in protecting our community from the dangers of the opioid epidemic. This settlement provides yet another example of my office’s commitment to pursuing misconduct at every level in the opioid supply chain.”

“Professional Pharmacy exhibited a continued disregard of their obligations under the Controlled Substances Act by illegally dispensing powerful controlled substances like oxycodone over a several year period,” said Thomas Hodnett, Special Agent in Charge of the DEA’s Philadelphia Field Division. “Pharmacies are entrusted with properly dispensing controlled substances in their care.”

The settlement agreement covers liability under the CSA that imposes civil penalties for illegally filling controlled substance prescriptions, and the False Claims Act, which imposes civil damages and penalties for false claims made to the federal government.

The Takeaway

The Department of Justice is quite serious about pursuing these sorts of cases, and this particular one, involving both illegally dispensing opioid prescriptions and Medicare/Medicaid fraud is a good example of what not to do.

Reference

US State Attorney’s Office. Eastern District of Pennsylvania. Area pharmacy agrees to resolve civil allegations of improper dispensing of controlled substances. July 17, 2024. Accessed August 23, 2024. https://www.justice.gov/usao-edpa/pr/area-pharmacy-agrees-resolve-civil-allegations-improper-dispensing-controlled