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Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of Kentucky

FOR IMMEDIATE RELEASE
Monday, May 2, 2016

The United States Announces Civil Allegations Against ARH Pharmacies

Allegations include claims of filling fraudulent prescriptions for stimulants and failing to maintain proper records of controlled substances

LEXINGTON, Ky. – Appalachian Regional Healthcare, Inc. (“ARH”) has been accused of unlawfully filling fraudulent prescriptions for stimulants, written by a physician working in Harlan ARH’s Emergency Room, for ARH nurses and staff, and their family members, without a proper doctor-patient relationship, and failing to make and maintain complete and accurate records of its controlled substances.

In a civil lawsuit filed today, the United States has alleged that Harlan ARH Hospital Pharmacy improperly filled prescriptions for stimulants that were written by a Harlan ARH Emergency Room physician. The United States contends that many of these prescriptions were written for double the standard recommended dose of prescription pills and that, as a result of these improperly filled prescriptions, thousands of stimulant pills were illegally dispensed to ARH employees and their family members. The United States further contends that ARH failed to make and maintain complete and accurate records of its controlled substances at two other pharmacies – Hazard ARH Regional Medical Center Clinic Pharmacy and Middlesboro ARH Pharmacy – which prevents the Government from determining whether other controlled substances had been diverted for illegal use.

The United States is seeking civil penalties for ARH’s alleged violations of the Controlled Substances Act.

Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Timothy J. Plancon, Special Agent in Charge of the Detroit Division of the Drug Enforcement Administration, jointly announced the filing of the complaint.

A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.

Topic(s): 
Health Care Fraud
Updated May 3, 2016