Lincoln Pharmacy

Tacoma, WA 2020--2021 Independent Pharmacies
DEA DOJ Controlled Substance Recordkeeping Failure Inadequate Controlled Substance Storage Private Key Security Failure
Penalty
$80,000

Outcome

Lincoln Pharmacy paid $80,000 to settle allegations that a June 2021 DEA inspection found systemic failures to track oxycodone, hydrocodone, and other controlled substances, including inadequate inventory records, missing delivery records, unsecured storage, and a compromised DEA ordering system private key.

Details

Lincoln Pharmacy — Controlled Substance Tracking and Security Failures (2023)

Outcome: Lincoln Pharmacy paid $80,000 to settle allegations that a June 2021 DEA inspection found systemic failures to track oxycodone, hydrocodone, and other controlled substances, including inadequate inventory records, missing delivery records, unsecured storage, and a compromised DEA ordering system private key.

Lincoln Pharmacy, located in Tacoma, Washington, was inspected by the DEA in June 2021. The inspection revealed multiple interrelated failures in the pharmacy's controlled substance compliance program covering the period from March 2020 through June 2021.

The DEA found that Lincoln Pharmacy failed to maintain records on oxycodone, hydrocodone, and other scheduled drugs for the 15-month inspection window. The pharmacy's inventories of scheduled controlled substances were inadequate — the counts and documentation required by 21 CFR Part 1304 were not being properly maintained. The pharmacy also failed to keep records of when and how much of certain scheduled drugs were delivered to the pharmacy, a fundamental chain-of-custody requirement. DEA inspectors found that some controlled substances were not secured in accordance with 21 CFR Part 1301. Additionally, the pharmacy failed to keep its DEA Controlled Substance Ordering System (CSOS) "private key" secure — the digital credential used to authenticate electronic orders for Schedule II controlled substances to suppliers.

The settlement was announced February 28, 2023, by the U.S. Attorney's Office for the Western District of Washington. Lincoln Pharmacy paid $80,000 to resolve the claims without admitting liability. The case was described by the U.S. Attorney's office as part of a broader series of DEA enforcement actions targeting administrative violations of the CSA.

Primary Source: DOJ and Lincoln Pharmacy in Tacoma Settle Allegations — DOJ Western District of Washington

How Crucible Prevents This

Crucible's controlled substance tracking controls enforce the exact requirements Lincoln Pharmacy failed to meet: inventory reconciliation for Schedule II and III narcotics (oxycodone, hydrocodone), documentation of inbound deliveries via DEA Form 222 or CSOS, secured storage verification, and private-key access controls for electronic DEA ordering. Automated gap detection between ordering records and dispensing records would have surfaced the discrepancies found by DEA inspectors — months before the June 2021 inspection that triggered federal action.

Source: DOJ and Lincoln Pharmacy in Tacoma Settle Allegations the Pharmacy Failed to Follow the Controlled Substances Act — DOJ, Western District of Washington (Feb. 28, 2023)

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