Drug distributor Cardinal Health, Inc. (CAH) said Tuesday that it had agreed to a settlement with the Drug Enforcement Agency to resolve ongoing litigation.
The company said it has agreed to a two-year suspension of its Lakeland, Florida, distribution center's DEA registration to ship controlled medicines from this facility and to improve certain anti-diversion procedures.
However, the Lakeland distribution center will remain open, and all other operations at the facility will continue, the company said.
Cardinal Health said the Drug Enforcement Agency is planning no further administrative actions at other Cardinal Health facilities.
"This agreement allows us to put this matter behind us, and just as important, will clear the way for a more productive dialogue about how we and others in the health care and regulatory community can work together to prevent the abuse and misuse of prescription drugs," said George Barrett, chairman and CEO of Cardinal Health.
In February, the Drug Enforcement Administration suspended its license to distribute controlled medicines from Cardinal Health's Lakeland, Florida distribution center. The agency had alleged that four of Cardinal Health's retail pharmacy customers dispensed controlled substances based on prescriptions that were issued for other than a legitimate medical purpose and outside the usual course of professional practice. With regard to Cardinal Health, the agency had alleged that the company failed to conduct meaningful due diligence to ensure that the controlled substances were not diverted into other than legitimate channels.
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