Pharmacy Settles for $3M to Resolve DEA Allegations

Pharmacy Settles for $3M to Resolve DEA Allegations

Pharmacy Settles for $3M to Resolve DEA Allegations

Kansas long-term care pharmacy was improperly paid by the Medicare and Medicaid programs for dispensing controlled substances without valid prescriptions.

PharmScript of KS, LLC, a long-term care pharmacy in Lenexa, Kansas, agreed on December 13, 2022 to pay $3 million to resolve allegations that it violated federal law by dispensing controlled substances to residents in nursing and long-term care facilities without valid prescriptions and that the company was wrongfully reimbursed by the Medicare and Medicaid programs.

PharmScript of KS, LLC is a wholly owned subsidiary of PharmScript Holdco, LLC and provides medication and pharmaceutical services to patients in skilled nursing facilities and to residents in assisted living facilities in Kansas and Missouri. PharmScript of KS, LLC self-reported violations of the Controlled Substances Act to the Drug Enforcement Administration, which conducted its own investigation.

The federal government alleged that between October 1, 2019, through March 31, 2021, PharmScript of KS, LLC dispensed Schedule II controlled substances for purported emergencies when quantities of the controlled substances dispensed were greater than what was adequate for the emergency period and that PharmScript of KS, LLC failed to obtain written prescriptions within seven days after a verbal authorization. The government also alleged that other controlled substances were dispensed without a written prescription and when no verbal authorization was received from a physician.

The government also resolved claims that PharmScript of KS, LLC was improperly paid by the Medicare and Medicaid programs for dispensing controlled substances without valid prescriptions.

In nearly all circumstances, Schedule II controlled substances require a written prescription by a physician, and refills are not permitted by law. The Controlled Substances Act allows pharmacists to dispense Schedule II controlled substances, such as opioid pain medications, without a written prescription only in true emergency situations. When allowed for emergencies, it is only for the quantity of drugs necessary to treat the patient during the emergency period. Emergency prescriptions must promptly be reduced to writing and signed by an authorizing physician within seven days of issuance. Failure to meet these requirements results in an illegal dispensing of controlled substances without a valid prescription.

Approximate date(s) of the diversion: 10/01/2019
Where the Diversion Occurred: PharmScript of KS, LLC 11144 Renner Blvd, Lenexa, KS 66219 Type of Healthcare Facility: Hospital
Has the incident been reported? e.g. to local law enforcement, county board of health, state licensure board, and/or federal DEA or FDA authorities? Yes To whom has the incident been reported? Other Reporting Organization(s)
Publicly available news reports about the incident: