Health company, CT pharmacy reach $500K settlement for alleged mishandling of controlled substances

A healthcare company and Connecticut pharmacy have agreed to pay nearly $500,000 in a settlement for allegedly violating regulations related to distribution of controlled substances, officials said.

Clarest Health, ProCare LTC New England LTC, and ProCare LTC Pharmacy of Connecticut LLC in Cheshire, reached a settlement agreement with the federal government and paid $499,525 to resolve allegations that they violated parts of the Controlled Substances Act, which aims to create a “closed system” of distribution for controlled substances, according Vanessa Roberts Avery, U.S. Attorney for Connecticut. 

The Controlled Substances Act, or CSA, was enacted to ensure intense governmental regulation for every step of the handling of controlled substances, from their manufacture to eventual use, officials said.

The ProCare pharmacy in Cheshire fills prescriptions and fulfills controlled substance orders for “emergency boxes” — which store emergency supplies of controlled substances — at 65 long-term care facilities, skilled nursing facilities, assisted living locations and rehabilitation and nursing practices in Connecticut and Rhode Island, officials said.

The government alleges that ProCare distributed controlled substances to practitioners that were not registered to dispense those drugs at least 96 different times, violating CSA regulations, Avery’s office said.

The distributions were allegedly made for emergency box stock between September 2020 and September 2022, officials said.

The government also alleged that ProCare failed to record some required information on forms required by the Drug Enforcement Agency multiple times by leaving out dates, registration numbers and numbers of containers, officials said.

“Strict compliance with the recordkeeping requirements of the Controlled Substances Act is a key part of preventing diversion and ensuring the safety of our community,” Avery said in a statement.  “Pharmacies play a vital role in ensuring controlled substances are properly handled, accounted for, and dispensed. This settlement demonstrates our office’s continued commitment to hold pharmacies accountable for their responsibilities under federal law.”

As part of the settlement, ProCare has also agreed to take part in a three-year corrective action plan with the DEA that is designed to ensure compliance with the CSA in the future, officials said.