September 16

Extreme OIG Audits Concentrating on Arabic Pharmacies?

Lately many of my clients have been plagued with extremely aggressive, to the point of rude visits by persons called OIG inspectors doing a Medicaid audit. However, these audits are unlike any audit you have ever had before. The OIG inspectors who are not pharmacists and are not educated in pharmacy medicine, science or statistics come into the pharmacy and demand to be admitted to the dispensing area.
In my opinion, they have no authority to enter your pharmacy but in fact, are prohibited by law from doing so. Under Michigan law, only a pharmacy board inspector, the DEA or a police task force concentrating on drug investigations can enter a pharmacy. As many of you know, if you are not a pharmacist but own a pharmacy you are only supposed to be in the area where there are drugs when a licensed pharmacist is with you.
Additionally, the auditors act in a very intimidating manner, often refusing to talk to counsel, including me. They assert that they are entitled to have a drug utilization report (DUR) dating back as far as seven years for all prescriptions including cash, HAP, Blue Cross, etc. However, in my opinion the language and interpretation of the regulations only allow Medicaid auditors to examine records required to be kept by law in the provision of services to Medicaid patients. In other words, they are not entitled to information about HAP, cash, Caremark, etc., its prescription or DUR.
Further, they want to know who your employees are, past and present as well as their telephone numbers and personal data. Along with this they want you to tell them who all of your drug inventory suppliers are. What pharmacist remembers every wholesaler or provider of inventory for a year let alone several? Further, many of the wholesalers you might have dealt with on occasion are now out of business and their records are irretrievable.
What is their game? Very easy. I surmise, to put small pharmacies in Dearborn out of business through intimidation or simply to take money from a pharmacy that it cannot afford.
The legitimate standard for the audit industry is batch sampling with a random selection of prescriptions. What these OIG auditors want to do is unscientific, unfair and discriminatory. They want to just state that for example over seven years a pharmacy may have billed $2,000,000.00 for Medicaid prescriptions. However, with the wholesalers that pharmacy recalls (assuming they cooperate accurately) the audit may total inventory purchases of say $1,200,000.00. So they want the pharmacy to pay 800,000.00! That sounds like simple math but it is not proof of fraudulent billings and is grossly discriminatory and unfair.
On Tuesday, September 13, 2016 I cross examined these auditors under oath and learned much. Asking one auditor under oath how many audits he did, and he said 25. I asked of those 25 how many of the pharmacies were corporations owned by people with Arabic surnames? Answer was all 25. I asked them whether they are auditing CVS, Rite Aid, Walgreen, etc., in the same fashion and they said no. You can guess why they don’t want to screw with the big drug chains right?
Even if you are not Arabic or a hospital pharmacist you should care. We are all brother and sister pharmacists and we must support each other. If you are being plagued by these so-called OIG Medicaid audits please call me and we can discuss what to do about this. In the meantime, I would imagine that affected pharmacies would be marshalling their forces to launch a discrimination lawsuit in addition to other torts and causes of action, I would love to file this lawsuit!
Believe me all of my pharmacists complain that it is extremely hard to make an honest living with the low reimbursements from insurance companies and these hyper aggressive supposed Medicaid audits are taking what little pleasure is left in the profession as well as the dignity and wellbeing of the pharmacist and employees.
I fear for the future because I’m probably one of the last attorneys left that stands up for smaller people and businesses and the large law firms would just as soon play baseball with the State to maintain their comfortable lifestyles.
Best wishes to all.

April 9

Existential Threat to Michigan Pharmacist’s Employment

I have learned through confidential, highly-placed sources that the same regime that recklessly poisoned the Flint water system killing eight people (Legionella) and permanently damaging tens of thousands are about to “fix” pharmacy in Michigan this summer.

If you look back in my blogs and Pencak Reports, I condemned a “pilot project” that Michigan politicians authorized allowing telepharmacy. I was very opposed to the legislation because I knew what the real intent of the pilot project was. The pretext the politicians used was a false claim that there were insufficient pharmacists in Michigan to serve our rural population.Fn2 And the solution was to have patients receive medication dispensed by robots while one pharmacist at a remote location skypes with patients to fulfill the counseling need. As long as the skyping pharmacist has a Michigan license he could be in any country on earth, being paid at the lowest rate.

Of course, the real politicians are only effectuating the plan of their corporate donor that wants to increase its profits by eliminating the cost of employing pharmacists and technicians. The fact that a thousand pharmacists will lose their employment in Michigan alone and that the public is in danger is immaterial. Don’t believe that statement? Good…as a health professional you are scientists and know that the essence of science is to prove or disprove a hypothesis in the real world. There are multiple, recent, reliable political science studies that validate the proposition that state and federal legislators do not take into consideration the needs of citizens but do implement the desires of large corporations or very wealthy individuals.Fn1

Why is it that an Ilitch, David Koch or a Dick DeVos can implement legislation and all of the pharmacists in Michigan cannot? The same reason that babies in Flint continued to receive poisoned water while Gov. Snyder spent our tax dollars to hook up a GM engine plant in Flint with pure water because the Flint water was corroding engines. The people got attention (but not pure water) one year later. An informal opinion from the 39th President of the U.S. Jimmy Carter: “the U.S.…is an oligarchy with unlimited political bribery”. President Carter opined that the U.S. Supreme Court’s decision in Citizen’s United “violates the essence of what made America a great country in its political system”.

We have politicians that believe a state should be run the same way as a corporation rather than as a government. Remember, the whole Flint water outrage started with a plan to save $100 a day. In a corporation human safety always takes a backseat to profit—think of GM faulty ignition switch and every Enbridge pipeline.

Pharmacists and prescription consumers are in danger if telepharmacy supplants brick & mortar neighborhood pharmacies.

Who will save us? A uniquely American trait is a belief that a white knight or Superman will come to right wrongs and save the innocent from the powerful wrongdoers. It is understandable, in that Hollywood actualized the concept. Arguably, the first silent-film era superhero was “Zorro”; a completely fictional superhero that protected Californian peons from the oppressive one percenters—landowners in Spanish California.

Europeans for example don’t believe in superheroes saving them from oppressors because good men and women actually fought the good fight against fascism in the 20th Century (1930’s) and lost in Spain. Fascist dictator Francisco Franco (with aid from Hitler) defeated the people in the Spanish Civil War of which Albert Camus wrote:

“Men of my generation have had Spain in our hearts. It was there that they learned…that one can be right and yet be beaten, that force can vanquish spirit, and that there are times when courage is not rewarded.”

I learned in my own life that if I need something I must obtain it. My philosophy is encapsulated this way…If it is to be, it’s up to me.

I won’t tell you what to do about this impending outrage but I will note the following, Zorro or Ironman is not coming to help. Why spend your hard-earned money on political contributions to any establishment politicians? The politicians receive tens of millions from special interests so why would they care about thousands of dollars?

So, if you don’t want telepharmacy in Michigan, it is up to you.


Fn[1] There is actually an excess of pharmacists for the available jobs in Michigan.

Fn[1] See for example e.g.: Testing Theories of American Politics:  Elites, Interest Groups, and Average Citizens, by Martin Gilens and Benjamin I. Page, Publication: Perspectives on Politics; Rich People Rule! by Larry Bartels, Publication: Washington Post; and Stacked Deck: How the Dominance of Politics by the Affluent and Business Undermines Economic Mobility in America by David Callahan & J. Mijim Cha

September 22

The Pencak Report, Fall 2015

How to Improve Pharmacy Quickly and Easily

I have a new idea that I don’t think anybody before me has considered. Many of you already know that I have represented pharmacies and pharmacists in most of the 50 states. Each state has different laws and you need to be licensed in every state to practice pharmacy there. After doing this for a long time I realized there really is no justification for having separate state pharmacy practice rules, laws and licenses.

What I propose is having one pharmacist license that would allow all pharmacists to practice in any of the 50 states. We would begin by grandfathering in all present pharmacists into the national license and new pharmacists would take a competence and law exam based upon the new standard of care. All 50 states would have the same pharmacy practice rules and all new pharmacists would take the identical pharmacy competence exam and pharmacy law exam.

Why is this a great idea? Think about it and you will find even more advantages than I outline below. Here are some benefits of a national pharmacist license:

  1. Every pharmacist would be free to move to the state that suits them in terms of climate and job market.
  2. Some states have too many pharmacists and other states have too few, so maldistribution of pharmacists would be cured by natural market forces.
  3. Pharmacists’ incomes might grow.
  4. The chain gods would be pleased because they could instantly staff the stores where they are having difficulties finding pharmacists.
  5. Pharmacists out of a job in Michigan or Ohio might choose to work in Hawaii or Oklahoma, etc.
  6. The practice of pharmacy should really be a national standard as in contemporary times there is no real difference between properly dispensing prescriptions in Oklahoma versus Michigan or New York.
  7. If you own a couple pharmacies on a borderline of a contiguous state, you could easily migrate from your two stores in Michigan to fill a niche in Ohio or in Indiana for example by opening pharmacies there.
  8. The public would benefit by having sufficient pharmacists and pharmacies where there are not enough currently.
  9. All pharmacists would know what the law is and not run into hidden traps because a state they are mail ordering to or otherwise doing business occasionally in, might cause you to have legal problems because you don’t know the quirks of an individual state’s licensing rules.
  10. National standard of care and better policing would be easier to comply with.
  11. Freedom to travel.
  12. Less oversight costs.

I am certain that you can think of other benefits to a national pharmacist’s license.

Quick Fix to Increase Pharmacist’s Pay

Many of you know that I was extremely successful in suing one of the biggest pharmacy chain stores for failing to pay pharmacists overtime for hours over 40. I’d like to sue them all now because they are abusing pharmacists by not paying them overtime. You may ask why don’t I? That’s because former President Bush “W” signed an amendment to the Fair Labor Standards Act (FLSA) exempting pharmacists from overtime pay requirements.

In truth, pharmacists working for chains are not salaried professionals, they are hourly employees. The easy answer is to repeal the amendment to the FLSA and remove pharmacists from overtime pay exclusion. This is the perfect time to push for that change because the politicians have a big election year coming up and they would be more receptive. Nah, they won’t change for us.

While we are on that subject, I would like to see our elected officials, congressmen, senators, governors and Supreme Court justices be required to wear NASCAR style coveralls with patches on their coveralls that show which billionaires and corporations directly sponsor them. To encourage the politicians and the Supreme Court to suffer the indignity of wearing coveralls identifying their secret owners, we could allow them to be paid for displaying their sponsor’s patch. The politicians would have even more money and you and I would be able to know in advance who controls them before we bring a request for a bill or file a case.

Too Much Education

There are too many colleges of pharmacy and the course lasts too long. There is an overabundance of pharmacists right now because there are too many colleges of pharmacy. And right now pharmacy has become a less attractive profession because the ratio to the cost of a pharmacy education debt to a pharmacist salary is 1 to 1. That means for example, that the pharmacist might be making $125,000.00 a year but he owes for his education the same amount of money plus accumulating interest.

It is much more desirable to enter a profession where the income greatly outweighs your student debt. Further, it is unnecessary to spend six years in college to be a pharmacist. You could eliminate at least one year and possibly two for an entry level pharmacist program. You are free to pursue advanced degrees in pharmacy if you wish.

So Now You Are a CPhT!

Congratulations! Now, the down side—because you have a license, the State can take it away from you. Therefore, pharmacy technicians should start reading my blog reports and get to know my name because now that you have a license you now have a whole range of duties and expectations that you never had before. You will now be a target for lawsuits and police. www.pharmacylawpro.com

Don’t Do This

Here is my list of don’ts:

  1. If you work for a big corporation do not lie to protect the corporation. A lot of corporations expect or demand that you lie when there is a lawsuit involving the wrongful termination of a pharmacist. If you think about this… even if you don’t mind committing perjury in order to save the company, ask yourself if you are willing to lie, will there come a day when the corporation gets rid of you because you’ve grown old or your health has a downturn? Won’t the other employees then tell lies to save the corporation when you’re the person suffering an unjust termination? From a moral standpoint, lying to protect big business is obviously wrong but you can also be charged criminally for perjury.
  2. Don’t agree to arbitration in lieu of jury trials. Arbitration is a stacked deck of cards in favor of the casino, the big corporation. A judge and jury is more likely to give you justice.
  3. Do not ever answer potentially incriminating questions by anyone without first consulting an attorney. Remember, the Fifth Amendment protects the innocent as well as the guilty. In this case, I am your only friend and advisor that cannot be compelled to inform on you.
  4. Do not text or email anyone ever about any sensitive situations. Remember, all telephone calls are routinely recorded and surveilled. Your smart phone can put you in an orange jumpsuit.
  5. Do not use public Wi-Fi at Starbucks or hotels and conference locations because lawyers, pharmacists and doctors can have identity theft as well as stolen protected client information. Starbucks, hotels and conference locations are especially prime target locations for hackers.
  6. Do not put any of your private information on your IPhone and carry it with you everywhere you go. Don’t use your thumbprint to lock your device because the police can easily access it at a traffic stop and use your prints to run amok.
  7. While the U.S. Supreme Court recognized that modern cell phones contain extremely private data and require protection from police intrusion by virtue of a search warrant, know this. It is relatively easy for police officers to get search warrants.
  8. I recommend having a 2nd cell phone that you only use as a telephone and not store critical data in there when traveling.
  9. If you are asked questions by state or federal authorities of any kind don’t answer questions without an attorney’s advice. You will only talk yourself into trouble. You won’t charm police with your cooperation. Leave cobra charming to a mongoose.
  10. Whether you are driving or a passenger in a car that is stopped by the police, never let the police know that you are a health professional. If you are a pharmacist or a nurse, if you don’t need to, don’t carry your license in your wallet or leave your hospital ID or parking pass in plain view. Cops will maliciously call your employer to get you fired. True example, driver boyfriend driving with a little too much EtOH, nurse passenger sober; cop calls her hospital about incident, she is fired! Trust me, this happens frequently.

Do This

  1. Do have a relationship with an attorney like me so you can call whenever you are stopped by the police on the highway, in your home or at work. It is unsafe interacting with the police on your own.
  2. If you are working in a dangerous pharmacy, demand a uniformed, armed security guard for the protection of you and the other employees. CVS can afford it.
  3. If your employer does not allow you to carry a firearm, consider purchasing modern, discreet bullet resistant clothing. Our president, athletes, executives and others are wearing business and leisure clothing that is highly bullet resistant and you can’t even notice it unless you know what to look for. There is every reason to expect even more armed robberies of pharmacies as there are less and less jobs for unskilled Americans.
  4. Do update you professional license address with the Board. And it is very important to check your mail regularly. If there is a Complaint that you fail to file an answer to you will be defaulted.

Biggest Deficiency in Worldwide Colleges of Pharmacy

I’m in a unique position as a lawyer representing pharmacists who were educated at colleges of pharmacy across the planet. In some countries the pharmacy colleges do not teach any ethics to its students. In American colleges of pharmacy ethics are poorly taught to students. I am certain that I could develop a curriculum to teach pharmacy ethics in an intense but short program that would equip pharmacists to avoid legal entanglements for the rest of their lives.

There is a lot more to professional ethics than simply saying do what’s good for the patient. There are many more sophisticated issues involving financial arrangements as well as issues of work productivity versus discrimination against protected workers as well as voluntary, romantic relationships between peers, patients and supervisors. Not all sexual relationships between the above are grounds for lawsuits but if you don’t know how the game is played, you can be victimized. There is a world of difference between demanding sex from an employee in return for favorable job treatment and two people falling in love with each other. I have seen many examples of both. One example is a meritorious lawsuit and big trouble. The other example has led to people I know who have been happily married for 20 or more years.

MTM Certification

I note with amazement that various groups are offering expensive and time consuming seminars for pharmacists to become certified to be paid for MTM. MTM as most of you know is Medical Therapy Management. What did you graduate from the College of Pharmacy for? Obviously, you were already abundantly qualified to perform MTM without the additional cost of seminars and certifications. To me it is an insult to pharmacists that some federal bureaucrat thinks pharmacists need an 8 hour course to learn how to provide MTM! Nurses are already being paid to perform MTM. This is another example of our profession’s failure to communicate our education, mission and qualifications. MTM is the raison d’etre of the profession of pharmacy.

March 26

Of Pharmacists Forced to Vaccinate, Arbitration

If a pharmacist can’t vaccinate patients can your pharmacy employer fire you? I have personally handled a few cases where pharmacists are unable to vaccinate patients. Thus far, I requested reasonable accommodations on behalf of the pharmacist and the employer has properly granted those requests. For example, a pharmacist may have a fear of injecting people or causing pain to others, or physically the pharmacist is unable to manage a crisis where a
patient has an anaphylactic shock.

On January 18, 2015, a New York District Court in a jury trial awarded $2.6 million to a pharmacist fired by Rite-Aid because he could not vaccinate customers. The case is Stevens v. Rite-Aid Corp et al, No. 6:13-cv-00783 (N.D.N.Y Jan. 18, 2015). In a nutshell, the plaintiff pharmacist had been working for Eckerd Pharmacy since 1977 and when Rite-Aid acquired Eckerd in 2007 he became a Rite-Aid employee. Four years later Rite-Aid required pharmacists to become trained to vaccinate customers, etc. Stevens had physician documentation that he has trypanophobia, an intense and irrational fear of needles. Instead of making a reasonable accommodation for Stevens’ problem with vaccination, Rite-Aid just fired him.

First, the pharmacist requested an EEOC investigation where Rite-Aid admitted that they fired Stevens simply because he refused to administer flu shots. Rite-Aid claimed that a needle phobia is not a disability per the ADA and therefore they could fire Stevens who had been a faithful pharmacy manager for years. The EEOC concluded that trypanophobia qualified as a disability and there was reasonable cause to believe Rite-Aid discriminated against Stevens’ disability by denying him reasonable accommodations and firing him in willful violation of the ADA. To make a long story short, that allowed him to go for a jury trial and the jury found in favor of Stevens. You can look this case up on the internet for all of the details. But what is important is that this gives hope to many pharmacists who have handicaps and phobias that hinder them from vaccinating people but does not interfere with their ability to work as pharmacists. Further, the most important lesson to learn is that a jury gave the pharmacist justice. If this pharmacist had signed a waiver with his employer of a right to a jury trial and instead opted for arbitration it is my considered opinion, that he would have lost the arbitration. This case demonstrates why employee pharmacists should not in my opinion, give up their valuable right to a jury trial and agree to binding arbitration for grievances with their employer.

When an employee or consumer must litigate, the big corporation has a huge advantage in arbitration; that is because the plaintiff is a common citizen who has little (and sometimes no money) and an injustice has been done by a fortune 500 corporation which has vast reserves of money and clout. Think about it from the perspective of the arbitrator. Generally, the plaintiff and the corporation agree upon an arbitrator. But the reality of it is, the corporation always gets favorable treatment from the arbitrator because the arbitrator knows that that the corporation is repeat business for him. If the arbitrator finds in favor of the little guy the corporation will never hire him again. It is in the arbitrator’s financial interest to side with the mega-corporation every time. Think of arbitration as a casino and the arbitrator is a slot machine.