San Diego Pharmacy Chain Pays $350 000 to Resolve Diversion Claims

The Department of Justice (DOJ) has announced a settlement with San Diego pharmacy chain, Palm Care Pharmacy, to resolve allegations that the pharmacy mishandled controlled substances. The allegations arise from an investigation by the US Drug Enforcement Agency (DEA) into suspected illegal activity. An inventory audit revealed multiple violations of the Controlled Substances Act and the Combat Methamphetamine Epidemic Act between the years 2018 and 2022.

Palm Care Pharmacy agreed to pay $350 000 to resolve the allegations, including that Palm Care Pharmacy:

• Failed to control its controlled substances inventory;
• Failed to maintain complete records of controlled substances transactions; and
• Sold pseudoephedrine improperly.

According to the government, the pharmacy’s failure to control and track inventory led to large amounts of unaccounted for medications, including the opioids oxycodone, hydrocodone, and tramadol, Xanax, and muscle relaxants (including Soma). In addition to paying a fine, the pharmacy chain has entered into a Memorandum of Agreement with the DEA requiring it to take further measures to handle controlled substances properly.

“Failure to manage inventory of controlled substances is not just a compliance issue, it’s a public safety issue,” said US Attorney Tara McGrath in a statement. “Every untracked pill is a problem waiting to happen.”

The Takeaway

The DEA is very serious about record keeping and managing controlled substance inventory. Similar investigations and settlements such as the one in this case happen frequently. “Accurate record keeping prevents controlled substances from ending up in the wrong hands,” said DEA Diversion Program Manager Rostant Farfan in a statement. “DEA will continue to hold registrants accountable to ensure they are operating within the closed system of distribution.” Don’t cut corners on record keeping when it comes to controlled substances.

Reference

San Diego pharmacy pays $350,000 for mishandling controlled substances. News release. US Attorney’s Office (Southern District of CA). Published May 2, 2024. Accessed July 15, 2024. https://www.justice.gov/usao-sdca/pr/san-diego-pharmacy-pays-350000-mishandling-controlled-substances