Pharma, Legal

Omnicare to settle for $15 million over opioid allegations

The Department of Justice filed suit against Omnicare, claiming that it had allowed controlled substances to be dispensed to patients without a valid prescription. A subsidiary of CVS, Omnicare manages prescriptions for long-term care facilities.

Omnicare will pay $15 million to settle allegations that it allowed controlled substances to be dispensed to patients without a valid prescription.

The Cincinnati, Ohio-based company provides pharmacy services for long-term care facilities, such as nursing homes and assisted living facilities. It was acquired by CVS Health in 2015.

The settlement was reached on May 6 after an investigation by Drug Enforcement Administration field officials and U.S. Attorney’s Offices in Colorado, Oregon, Utah, and Central and Southern California.

The allegations focus on Omnicare’s prescription deliveries to long-term care facilities, which includes “emergency kits”—limited stockpiles of controlled substances that can only be dispensed with a valid prescription on an emergency basis.  Omnicare allegedly failed to control the emergency kits by allowing long-term care facilities to remove opioids and other controlled substances days before doctors provided a valid prescription.

The company also reportedly violated the federal Controlled Substances Act by processing written prescriptions that lacked certain required information, such as the prescriber’s signature or DEA number.

As part of the settlement, Omnicare will pay $15.3 million and will enter into a memorandum of agreement with the Drug Enforcement Administration that would require Omnicare to increase its monitoring of emergency kits placed at long-term care facilities.

“Omnicare failed in its responsibility to ensure proper controls of medications used to treat some of the most vulnerable among us,” DEA Acting Administrator Uttam Dhillon said in a news release.  “DEA is committed to keeping our communities safe by holding companies like Omnicare accountable for such failures, while ensuring continuity of care and necessary access to emergency prescription drug supplies.”

In an emailed statement, CVS Health emphasized the allegations date back to before it acquired Omnicare, and did not involve any of its other businesses.

“Omnicare has entered into a settlement agreement with the U.S. Drug Enforcement Administration and certain U.S. Attorneys’ Offices to resolve allegations dating back to 2012 concerning the handling and processing of controlled substance prescriptions at some of its long-term care pharmacy locations. CVS Health acquired Omnicare in 2015,” the company stated. “The company is committed to the highest standards of business practices and meeting the needs of its long term care patients.  The matter was settled to avoid the expense and uncertainty of potential litigation and there was no admission of wrongdoing.”

This isn’t the first time Omnicare’s dispensing practices have come under fire. Another, separate lawsuit filed in December by the Department of Justice accused Omnicare of dispensing non-controlled prescriptions that were expired, out of refills or otherwise invalid.

Photo credit: Mykola Velychko, Getty Images

This article has been updated with a statement from CVS Health.

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