Mt. San Rafael Hospital and Rural Health Clinic in Trinidad, Colorado, along with three of its physicians—Dr. Sheryll Castro-Flores, Dr. Joseph Jimenez, and Dr. Douglas McFarland—have agreed to pay a total of $650,000 to settle allegations that they unlawfully prescribed opioids and other controlled substances in violation of federal law.
Federal authorities allege that from January 2016 through December 2023, the three doctors issued prescriptions for controlled substances, including opioids, without a legitimate medical purpose or outside the usual course of professional practice. The government claims that the doctors overlooked several warning signs such as high daily opioid dosages, risky drug combinations, indications of substance abuse, repeated early refill requests, cash payments despite insurance coverage, and patients traveling long distances to obtain prescriptions.
The United States Attorney’s Office stated that Mt. San Rafael Hospital is also responsible under the Controlled Substances Act for the actions of its employees and under the False Claims Act for causing claims related to these invalid prescriptions to be submitted to Medicare and other federal health care programs.
To resolve these allegations without admitting liability, Dr. Castro-Flores will pay $112,500; Dr. Jimenez will pay $112,500; Dr. McFarland will pay $100,000; and Mt. San Rafael Hospital will pay $325,000 in penalties and damages.
In addition to financial penalties, the hospital has implemented new policies restricting opioid prescribing for chronic pain management and ensuring that any opioid prescribing for acute or sub-acute pain aligns with state guidelines.
“Doctors and the hospitals who employ them must prescribe controlled substances carefully to protect patients and the community from the dangers of overprescribing,” said United States Attorney Peter McNeilly. “When doctors write prescriptions for opioids despite red flags signaling that the prescriptions may be invalid, they place the patient at risk of harm and they increase the likelihood of illegal diversion. And, when doctors cause illegitimate prescriptions to be submitted to Medicare and other federal healthcare plans, taxpayers pay for those illegitimate prescriptions. We will continue to hold doctors and hospitals accountable when they disregard these important obligations.”
“DEA will continue to relentlessly pursue hospitals and practitioners who engage in egregious prescribing practices jeopardizing the health and safety of patients and the community,” said DEA Rocky Mountain Field Division Diversion Program Manager George Taylor. “DEA, alongside federal and state partners, will not tolerate those that violate the trust of patients and will hold those parties accountable.”
“Physicians who recklessly, illegitimately distribute controlled substances undermine ongoing public health efforts to address the opioid crisis and betray their professional responsibility to serve the health and well-being of the public,” said Special Agent in Charge Linda T. Hanley of Health and Human Services Office of Inspector General (HHS-OIG). “Working closely with our law enforcement partners, HHS-OIG will continue to investigate such allegations to safeguard our health care system’s integrity as well as patient safety.”
The investigation was conducted by agents from both DEA’s Rocky Mountain Division and HHS-OIG. Assistant United States Attorney Jacob Licht represented the government in this matter.
The claims settled are allegations only; none of those involved admitted liability.
