Food City, a well-known regional grocery chain operating as K-VA-T Food Stores Inc., has reached a significant settlement with the U.S. government regarding allegations of improper dispensing of opioids and other controlled substances. This settlement, amounting to $8,488,378, addresses claims under the False Claims Act (FCA) related to practices at several Food City pharmacy locations. An additional $78,621 will be paid to the states of Virginia and Kentucky concerning claims from state Medicaid programs. This action underscores the critical responsibility pharmacies bear, especially during their operating hours, to ensure the legitimacy and medical necessity of every prescription they fill.
Alt text: Exterior view of a Food City grocery store with prominent signage, emphasizing its role as a regional food and pharmacy provider.
Government officials have voiced strong opinions on the matter. Principal Deputy Assistant Attorney General Brian M. Boynton, leading the Justice Department’s Civil Division, stated, “Pharmacies that fill prescriptions for opioids and other controlled substances have an obligation to ensure that those prescriptions are medically necessary.” He emphasized the department’s dedication to holding accountable pharmacies that neglect this crucial responsibility, thereby contributing to the ongoing national opioid crisis. This commitment extends to ensuring that during all Food City Pharmacy Hours, operations adhere to the highest standards of patient safety and prescription validation.
U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee echoed this sentiment, highlighting the severe consequences of pharmacies dispensing controlled substances without proper verification. “When pharmacies fill prescriptions for opioids and other powerful controlled substances without regard to their legitimacy or medical necessity it significantly contributes to the opioid epidemic, causing great harm to our citizens and communities,” he noted. The settlement with Food City serves as a clear message that federal, state, and local law enforcement agencies are united in their efforts to combat the opioid crisis using all available legal tools, ensuring responsible practices are upheld during all pharmacy hours.
Alt text: Close-up of prescription medication bottles on a pharmacy counter, symbolizing the critical role of pharmacies in dispensing controlled substances responsibly.
Special Agent in Charge Kelly J. Blackmon of the Department of Health and Human Services Office of Inspector General (HHS-OIG) emphasized the importance of protecting vital healthcare programs. “The Medicare and Medicaid programs deliver vital prescription drug services to beneficiaries,” Blackmon stated. “This case underscores HHS-OIG’s dedication to addressing the nation’s opioid overdose crisis and ensuring that only legitimate, medically necessary prescriptions are dispensed.” This vigilance is crucial during all pharmacy hours to safeguard beneficiaries and program integrity.
The opioid epidemic’s devastating impact was further highlighted by Special Agent in Charge Derek M. Holt of the Office of Personnel Management Office of the Inspector General. He commended law enforcement partners for holding pharmacies accountable for actions that could worsen the crisis and endanger patients within federal health care programs. This accountability is paramount to ensure patient safety and responsible medication dispensing throughout all food city pharmacy hours.
Alt text: Symbolic image of the scales of justice, representing the legal and ethical responsibilities of pharmacies in dispensing medications and upholding the law.
Special Agent in Charge Darrin K. Jones of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office, reinforced the commitment to accountability. “This settlement demonstrates our commitment to holding pharmacies that knowingly dispense medically unnecessary opioids and other controlled substances accountable for their actions,” Jones said. He thanked investigative partners for their dedication to fighting the opioid epidemic and protecting service members and their families, emphasizing the need for stringent oversight during all pharmacy hours.
Chief Edward C. Norton Jr. of the Defense Health Agency’s Pharmacy Operations Division stressed the importance of safe and appropriate care for military personnel, retirees, veterans, and their families under TRICARE. “Dispensing medically unnecessary opioids and other controlled substances to our beneficiaries puts them at great risk and will not be tolerated,” Chief Norton stated. He affirmed that pharmacies will be held accountable for adhering to these standards to ensure the highest quality health benefits for those who serve or have served the nation, highlighting the necessity of responsible practices during all hours of operation.
The allegations against Food City detailed that, from January 1, 2011, through December 31, 2018, 24 of its store pharmacies dispensed opioids and other controlled substances that were medically unnecessary, lacked legitimate medical purpose, or were not pursuant to valid prescriptions. The government contended that these practices led to Food City knowingly submitting false claims to federal healthcare programs. This period of scrutiny underscores the need for continuous monitoring and responsible dispensing protocols throughout all pharmacy hours.
The settlement also resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by K-VA-T Litigation Partnership, LLP, who will receive $1,527,908 from the settlement proceeds. This provision allows private parties to report fraud on behalf of the government and receive a portion of the recovery, highlighting the importance of vigilance from both within and outside pharmacy operations, at all times, including regular pharmacy hours. The case is formally captioned U.S. ex rel. K-VA-T Litigation Partnership, LLP v. K-VA-T Food Stores, Inc. d/b/a Food City, Case No. 3:20-cv-436 (EDTN).
This resolution was achieved through a collaborative effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Tennessee, with support from HHS-OIG and DCIS. This inter-agency cooperation reflects the government’s comprehensive approach to combating healthcare fraud and ensuring responsible pharmacy practices during all operating hours.
This case exemplifies the government’s strong focus on combating health care fraud, utilizing the False Claims Act as a powerful tool. The public plays a crucial role in this effort, and tips or complaints about potential fraud, waste, abuse, and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477). Such vigilance is essential to maintaining the integrity of healthcare systems and ensuring responsible operations during all food city pharmacy hours and beyond.
Trial Attorney Elizabeth J. Kappakas of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Alan G. McGonigal and Alexa O. Hadley for the Eastern District of Tennessee were key figures in handling this matter.
It is important to note that the claims resolved by this settlement are allegations only, and there has been no determination of liability.
