News and Press Releases

News and Press Releases

Allina Community Pharmacies settles federal claims

March 14, 2012

MINNEAPOLIS -- The U.S. Attorney’s Office for the District of Minnesota announced
today that Allina Health Systems, which operates Allina Community Pharmacies, has agreed to
pay the United States $375,000 to settle claims that the Apple Valley Pharmacy, one of the
Allina Community Pharmacies, failed to adhere to the Comprehensive Drug Abuse Prevention
Control Act of 1070. The agreement was reached earlier this week, without court action.

The Apple Valley Pharmacy is registered with the U.S. Drug Enforcement Administration
(“DEA”) as a retail pharmacy authorized to dispense Schedule 2 and 3 controlled substances. In
December of 2010, following audits of that pharmacy, the DEA determined that between
January 1, 2006, and September 18, 2009, the pharmacy had violated terms of its DEA
registration. The audits were conducted after the pharmacy reported the disappearance of two
500-count bottles of Hydrocodone. As a result of the audits, the DEA concluded that the
pharmacist in charge at the Apple Valley Pharmacy had diverted Schedule 2 and 3 substances
for a period of approximately three years.

Through the settlement agreement, the DEA alleged that the pharmacy had failed to
maintain proper records or submit accurate reports; had dispensed controlled substances
without receiving required documentation, including, in some instances, a signed prescription;
and had failed to maintain effective controls against theft and loss of controlled substances. For the purpose of resolving this matter, Allina Health Systems has agreed to pay to the
United States $375,000 within the next week. In return, the government will release the health
care company from any potential civil liability arising from this matter.

Assistant U.S. Attorney Bahram Samie represented the interests of the United States in this

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