Palm Springs-based pharmacy will pay nearly $1M in settlement for alleged Medi-Cal fraud
A Palm Springs-based pharmacy will pay nearly $1 million to settle allegations that it defrauded California's Medicaid program, according to a press release from state Attorney General Rob Bonta.
The settlement agreement resolves allegations that LASR Enterprises, Inc., unlawfully sought and received reimbursement from Medi-Cal for drugs that it over-dispensed, or that it dispensed drugs without a valid prescription. According to a 2019 civil case that was filed in the Superior Court of California for San Diego County, LASR Enterprises, at the time, operated White Cross Pharmacy, which is located at 1717 E. Vista Chino, Suite B2, in Palm Springs. White Cross Pharmacy has other locations in Brawley, San Bernardino, Riverside and Corona, according to its website.
The White Cross Pharmacy location in Palm Springs changed ownership in November 2022 and is now owned by Eric Chung. Chung said in an email Thursday that the transition in ownership was unrelated to any allegations or settlements.
The California Department of Justice’s Division of Medi-Cal Fraud and Elder Abuse investigated the case and negotiated a $925,000 settlement, which is more than five times the amount lost by Medi-Cal.
In August 2019, the state, through the Division of Medi-Cal Fraud and Elder Abuse, filed a civil action against LASR Enterprises in the Superior Court of California for San Diego County. Between January 2015 and December 2017, investigators found that "LASR and its owners sought and received a total of $155,709 in reimbursement from Medi-Cal for drugs dispensed without a valid prescription, and a total of $22,177 in reimbursement for drugs that were over-dispensed per an authorized prescription," according to Bonta. Their actions allegedly violated the California False Claims Act.
"The Medi-Cal system supports our communities by providing access to free or affordable healthcare services for millions of Californians," Bonta said in a statement. "When providers wrongfully claim reimbursement from Medi-Cal, they are misappropriating vital resources meant to protect the health of vulnerable families. Today’s settlement demonstrates our commitment to protecting the integrity of Medi-Cal and holding accountable those who try to defraud it."
LASR Enterprises did not immediately return The Desert Sun's request for comment.
Of the $925,000 settlement, California will receive $555,000 and the United States will receive $370,000, because Medi-Cal is funded jointly by state and federal governments.
Ema Sasic covers entertainment and health in the Coachella Valley. Reach her at ema.sasic@desertsun.com or on Twitter @ema_sasic.
This article originally appeared on Palm Springs Desert Sun: Palm Springs-based pharmacy to pay $1M for alleged Medi-Cal fraud
