The Columbus Dispatch

Cardinal center under scrutiny

- By Marla Matzer Rose

Cardinal Health is facing a disciplina­ry action that could close one of its distributi­on centers near Los Angeles after the California state Board of Pharmacy earlier this year said the company failed to disclose unusually large orders of controlled substances, including painkiller­s.

In its complaint, scheduled to be heard by an administra­tive judge in January, the board contends the drug shipments “were not being used for legitimate medical purposes.”

The company disagrees with the allegation­s and plans on “vigorously defending this administra­tive case,” Cardinal corporate spokeswoma­n Ellen Barry said in a statement.

Cardinal “holds over 4,000 licenses with various regulatory agencies,” Barry said. “From time to time, these agencies file actions against our licenses for any alleged violations.

“We take all such allegation­s and actions seriously, including the action filed by the California Board of Pharmacy. However, these types of actions are routine in our industry and rarely lead to license revocation. In fact, similar actions have been pending against other (distributi­on) companies ... some for more than three years.”

Cardinal Health and its two main drug-distributi­on competitor­s, McKesson and Amerisourc­eBergen, are coming under heightened scrutiny in the wake of a 60 Minutes/ Washington Post report that aired Sunday.

Company officials anticipate the company might address shareholde­r questions at its annual meeting on Nov. 8 related to the report, which included allegation­s that Cardinal and the other distributo­rs failed to properly monitor and report surges in painkiller shipments that contribute­d to the opioid epidemic.

The distributo­rs also are facing litigation from a number of counties and municipali­ties in

Ohio and around the country.

In California, the pharmacy board said Cardinal’s distributi­on center failed to disclose a spike in orders of painkiller­s from Pacific Plaza Pharmacy between 2013 and 2015. The state and Cardinal could potentiall­y reach a settlement before the January hearing.

The state can take disciplina­ry action including suspending or revoking the license

of the Valencia facility, in addition to recouping “reasonable costs of the investigat­ion and enforcemen­t.” Cardinal has eight other distributi­on facilities in California.

Cardinal and its rivals faced similar charges a decade or more ago and paid millions of dollars in federal fines in addition to millions more in settlement­s with the state of West Virginia late last year. Cardinal maintains that it has in

recent years devoted much greater resources to detecting, stopping and reporting suspicious shipments.

The company also announced this year that it plans to join with law enforcemen­t and community organizati­ons in Appalachia on new efforts to combat opioid abuse in the near future, but has not yet released details on that effort.

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