Rideout Health to pay $2.4M to settle drug mismanagement claims

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Marysville, Calif.-based Rideout Health has agreed to pay the federal government $2.4 million to settle allegations it violated the federal Controlled Substances Act, according to the Department of Justice

The government claims three of the health system's facilities — Rideout Memorial Hospital in Marysville, Fremont Medical Center in Yuba City, Calif., and Feather River Surgery Center in Yuba City — violated the Controlled Substances Act by failing to properly record transactions involving controlled substances.

The allegations arose from a Drug Enforcement Administration investigation that found pharmacy technicians at Rideout Memorial Hospital were moving controlled substances between Rideout Health facilities with little or no security in place, according to the DOJ.

In addition to the $2.4 million settlement, Rideout Health has agreed to a three-year compliance plan.

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