LEXINGTON, Ky. — Appalachian Regional Healthcare has agreed to pay the federal government $150,000 to settle allegations that the hospital chain violated the Controlled Substances Act.
The government brought suit against the company last year, accusing it of filling fraudulent prescriptions for stimulants and failing to make and maintain accurate records of its controlled substances.
The lawsuit claimed that a doctor working in the Harlan ARH emergency room provided numerous prescriptions for phentermine to ARH nurses, staff and family members without a proper doctor-patient relationship. The hospital’s pharmacy filled those prescriptions despite numerous red flags. Those warning signs included that an emergency room doctor typically never prescribes phetermine, which is a diet drug; the prescriptions were often for double the recommended dosage; and prescriptions were filled by employees who worked with the doctor.
The lawsuit further alleged that improper record-keeping at ARH pharmacies in Hazard and Middlesboro prevented auditors from being able to determine whether or not controlled substances were improperly dispensed in those locations.
A stipulation to dismiss the case is currently under review by a federal judge.