{"id":28943,"date":"2017-01-19T19:27:40","date_gmt":"2017-01-20T03:27:40","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=28943"},"modified":"2017-01-19T19:27:40","modified_gmt":"2017-01-20T03:27:40","slug":"costco-pays-11-75-million-for-not-keeping-good-track-and-control-of-prescription-drugs","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=28943","title":{"rendered":"Costco Pays $11.75 Million for Not Keeping Good Track and Control of Prescription Drugs"},"content":{"rendered":"<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\"><strong>LOS ANGELES<\/strong><\/span><\/p>\n<hr \/>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-1499 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/03\/U.S.-Justice-Dept-e1394578665196-300x170.jpg\" alt=\"U.S. Justice Dept\" width=\"300\" height=\"170\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/03\/U.S.-Justice-Dept-e1394578665196-300x170.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/03\/U.S.-Justice-Dept-e1394578665196.jpg 417w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>\u00a0Costco Wholesale will pay $11.75 million to settle allegations that its pharmacies violated the Controlled Substances Act when they improperly filled prescriptions for controlled substances, according to officials.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">The settlement resolves allegations that Costco pharmacies filled prescriptions that were incomplete, lacked valid DEA numbers or were for substances beyond various doctors\u2019 scope of practice. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Additionally, the settlement resolves allegations that Costco failed to keep and maintain accurate records for controlled substances at its pharmacies and centralized <\/span>fill<span style=\"font-size: 14pt;\"> locations.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">\u201cLast year, over 50,000 Americans died as a result of drug overdoses, many of which were related to the misuse of prescription drugs. This settlement demonstrates the accountability and responsibility that go along with handling controlled prescription drugs,\u201d said DEA Assistant Administrator Louis Milione. \u201cDEA works every day to reinforce good corporate practices through outreach and education efforts and, when appropriate, with administrative and criminal action.\u201d<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-15321 alignright\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/09\/DEA-IMAGE-300x169.jpg\" alt=\"DEA IMAGE\" width=\"300\" height=\"169\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/09\/DEA-IMAGE-300x169.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/09\/DEA-IMAGE.jpg 540w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Under the settlement, the DEA will be allowed to go into Costco and inspect pharmacy drug records over the next three years without warrants.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">\u201cThese are not just administrative or paperwork violations \u2013 Costco\u2019s failure to have proper controls in place in its pharmacies likely played a role in prescription drugs reaching the black market,\u201d said U.S. Attorney Eileen M. Decker. \u201cCostco pharmacies in Southern California filled numerous prescriptions for drugs that should not have been sold to consumers because of its flawed system for validating DEA registration numbers.\u201d<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Under the settlement that was finalized Wednesday, Costco acknowledged that, from the beginning of 2012 through the end of 2015, certain Costco Pharmacies dispensed controlled substances in violation of federal drug laws.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">The violations included the following incidents:<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">Filling prescriptions from practitioners who did not have a valid DEA number<\/span><\/p>\n<ul>\n<li style=\"text-align: left;\"><span style=\"font-size: 14pt;\">Incorrectly recording the practitioner\u2019s DEA number \u00a0<\/span><\/li>\n<li style=\"text-align: left;\"><span style=\"font-size: 14pt;\">Filling prescriptions outside the scope of a practitioner\u2019s DEA registration<\/span><\/li>\n<li style=\"text-align: left;\"><span style=\"font-size: 14pt;\">Filling prescriptions that did not contain all the required information<\/span><\/li>\n<li style=\"text-align: left;\"><span style=\"font-size: 14pt;\">Failing to maintain accurate dispensing records<\/span><\/li>\n<li style=\"text-align: left;\"><span style=\"font-size: 14pt;\">Failing to maintain records for their central fill locations in Sacramento and Everett, Washington<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_3810\" aria-describedby=\"caption-attachment-3810\" style=\"width: 300px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3810\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Government-Accountability-Office-Report-300x200.jpg\" alt=\"Source: Government Accountability Report\" width=\"300\" height=\"200\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Government-Accountability-Office-Report-300x200.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Government-Accountability-Office-Report-90x60.jpg 90w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Government-Accountability-Office-Report-180x120.jpg 180w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Government-Accountability-Office-Report-95x64.jpg 95w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/06\/Government-Accountability-Office-Report.jpg 408w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-3810\" class=\"wp-caption-text\">Source: Government Accountability Report<\/figcaption><\/figure>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">As part of an investigation in 2012 into the diversion of controlled substances by local physicians, the DEA\u2019s Los Angeles Field Division discovered that Los Angeles-area Costco pharmacies had filled numerous prescriptions issued by individual practitioners who lacked a valid DEA registration number. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Between January 2012 and August 2013, area Costco pharmacies filled dozens of prescriptions issued by individual practitioners who lacked a valid DEA registration number, and filled nearly 200 prescriptions issued by individual practitioners with a valid DEA registration number but used an invalid DEA registration number when recording and reporting the prescription.\u00a0 <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Costco filled these prescriptions because its system for validating DEA registration numbers was deficient and flawed.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">\u201cPharmacies across this country are on the leading edge of the battle against our prescription drug abuse crisis,\u201d said United States Attorney Annette L. Hayes of the Western District of Washington. \u201cA company such as Costco that distributes a significant volume of controlled substances has a responsibility to ensure it complies with regulations that help prevent opioids and other dangerous drugs from being misused or otherwise added to the illegal marketplace. I commend the Drug Enforcement Administration investigators for uncovering the violations at issue in this case, and working with Costco to ensure that systems are put in place to prevent controlled substances from ending up in the wrong hands.\u201d<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">To address issues uncovered in this investigation, Costco made improvements in its pharmacies:<\/span><\/p>\n<ul style=\"text-align: center;\">\n<li style=\"text-align: left;\"><span style=\"font-size: 14pt;\">The company purchased a new pharmacy management system at a total budgeted <\/span>five year<span style=\"font-size: 14pt;\"> cost of approximately $127 million.<\/span><\/li>\n<li style=\"text-align: left;\"><span style=\"font-size: 14pt;\">Costco implemented a <\/span>three tier<span style=\"font-size: 14pt;\"> audit program of its pharmacy locations: Tier 1 done by pharmacy managers and regional pharmacy supervisors; Tier 2 completed by an Internal Audit group consisting of three auditors and an audit supervisor; and Tier 3 an External Audit of 40 annual audits.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-6759 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/10\/Department-of-Justice-300x197.jpg\" alt=\"Department of Justice\" width=\"300\" height=\"197\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/10\/Department-of-Justice-300x197.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/10\/Department-of-Justice-90x60.jpg 90w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/10\/Department-of-Justice.jpg 600w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Michael C. Ormsby, U.S. Attorney for the Eastern District of Washington, said \u201cOpioid misuse has reached epidemic levels in the United States.\u00a0 This important matter is yet another example of the tenacious dedication of Drug Enforcement Administration investigators in uncovering and addressing corporate regulatory noncompliance. The DEA must be commended for its superb efforts in combating the opioid problem at so many different levels, including regulatory compliance.\u201d<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">\u201cPharmacies are the gatekeepers responsible for ensuring the lawful use of powerful drugs that have a legitimate medical purpose but are easily abused. The CSA provides the statutory oversight to ensure that pharmacies keep meticulous records,\u201d said U.S. Attorney Phillip A. Talbert of California. \u201cThe successful resolution of this matter demonstrates the Department of Justice\u2019s commitment to enforcing the CSA.\u201d<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>LOS ANGELES \u00a0Costco Wholesale will pay $11.75 million to settle allegations that its pharmacies violated the Controlled Substances Act when they improperly filled prescriptions for controlled substances, according to officials. The settlement&#8230;<\/p>\n","protected":false},"author":1,"featured_media":28956,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3],"tags":[],"class_list":["post-28943","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-main-slider","category-u-s-department-of-justice"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Costco Pays $11.75 Million for Not Keeping Good Track and Control of Prescription Drugs<\/title>\n<meta name=\"description\" content=\"Costco Wholesale will pay $11.75 million to settle allegations that its pharmacies violated the Controlled Substances Act when they improperly filled prescriptions for controlled substances\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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