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AGENCY FOR HEALTH CARE ADMINISTRATION vs PRESCRIPTION CENTERS, D/B/A COLONIAL DRUGS, 09-000724MPI (2009)

Court: Division of Administrative Hearings, Florida Number: 09-000724MPI Visitors: 6
Petitioner: AGENCY FOR HEALTH CARE ADMINISTRATION
Respondent: PRESCRIPTION CENTERS, D/B/A COLONIAL DRUGS
Judges: JEFF B. CLARK
Agency: Agency for Health Care Administration
Locations: Tallahassee, Florida
Filed: Feb. 11, 2009
Status: Closed
Settled and/or Dismissed prior to entry of RO/FO on Friday, June 26, 2009.

Latest Update: Aug. 13, 2009
AHCA v Prescription Centers, dba Colonial Drugs


Fil. ED

STATE OF FLORIDA AG l HC A

AGENCY FOR HEALTH CARE ADMI NIST RAfi 6 / L E RK

f zuoq AUG IO p I: Sb

STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION,



vs.

Petitioner,


DOAH Case No.: 09-0724MPI PROVIDER NO.: 106416900 AHCA C.I. No.: 08-6184-000

PRESCRIPTION CENTERS, d/b/a COLONIAL DRUGS,

RENDITION NO.: AHCA-09- U(;OB -5-MDO


Respondent.

I


FINAL ORDER


THE PARTIES resolved all disputed issues and executed a settlement agreement, which is attached and incorporated by reference. The parties are directed to comply with the terms of the attached settlement agreement. Based on the foregoing, this file is CLOSED.

DONE AND ORDERED on this the ifl-- day of Tallahassee, Florida.

, 2009, in


Holly Benson, Secretary

Agency for Health Care Administration


Filed August 13, 2009 10:20 AM Division of Administrative Hearings.


AP ARTY WHO IS ADVERSELY AFFECTED BY THIS FINAL ORDER IS ENTITLED TO A JUDICIAL REVIEW WHICH SHALL BE INSTITUTED BY FILING ONE COPY OF A NOTICE OF APPEAL WITH THE AGENCY CLERK OF AHCA, AND A SECOND COPY ALONG WITH FILING FEE AS PRESCRIBED BYLAW, WITH THE DISTRICT COURT OF APPEAL IN THE APPELLATE DISTRICT WHERE THE AGENCY MAINTAINS ITS HEADQUARTERS OR WHERE A PARTY RESIDES. REVIEW PROCEEDINGS SHALL BE CONDUCTED IN ACCORDANCE WITH THE FLORIDA APPELLATE RULES. THE NOTICE OF APPEAL MUST BE FILED WITHIN 30 DAYS OF RENDITION OF THE ORDER TO BE REVIEWED.


Copies Furnished to:


Smita Amin and Dilip Patel Prescription Centers, LLC d/b/a Colonial Drugs

155 East New England Avenue Winter Park, Florida 32789


Kelly Bennett, Assistant General Counsel Agency for Health Care Administration (Interoffice)


Peter Williams, Inspector General Agency for Health Care Administration (Interoffice)


D. Kenneth Yon, Bureau Chief Medicaid Program Integrity (Interoffice)


Finance & Accounting (Interoffice)


CERTIFICATE OF SERVICE


I HEREBY CERTIFY that a true and correct copy of the foregoing was served to the


above named addresses by mail or interoffice mail this of

Auql-AJT,

2009.

<:S


Richard Shoop, Agency Clerk

Agency for Health Care Administration 2727 Mahan Drive, Bldg. 3, Mail Stop #3

Tallahassee, Florida 32308-5403

(850) 922-5873


2


STATE OF FLORIDA

DMSION OF ADMINISTRATIVE HEARINGS


STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION,


Petitioner,


vs.


PRESCRIPTION CENTERS, d/b/a COLONIAL DRUGS,


Respondent.

/

CASE NO.: 09-0724MPI PROVIDER NO.: 106416900 AHCA C.I. No.: 08-6184-000


SETTLEMENT AGREEMENT


STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION ("AHCA" or "the Agency"), and PRESCRIPTION CENTERS, d/b/a COLONIAL DRUGS,

("PROVIDER"), by and through the undersigned, hereby stipulates and agrees as follows:


  1. This Agreement is entered into for the purpose of memorializing the final resolution of the matters set forth in this Agreement.

  2. PROVIDER is a Medicaid provider (Medicaid Provider No. 106416900) in the State of Florida.

  3. In a Final Agency Audit Report dated March 28, 2008, AHCA notified PROVIDER that review of Medicaid claims performed by Medicaid Program Integrity (MPI) indicated that, in its opinion, some claims in whole or in part were not covered by Medicaid and that an overpayment in the amount of $24,883.59 had been identified. Additionally, AHCA MPI imposed a fine in the amount of$5,500.00.

  4. The PROVIDER requested an informal administrative hearing to dispute MPI's findings.


  5. There appearing to be a specific dispute about material facts, the Agency requested the case be referred to the Division of Administrative Hearings ("DOAH'') for a formal hearing. The matter was referred to DOAH.

  6. In order to resolve this matter without the need for formal administrative proceedings, PROVIDER and the AHCA expressly agree as follows:

    1. AHCA agrees to accept the payment set forth herein in settlement of the issues arising from the MPI review.

    2. PROVIDER agrees to make a single payment of thirty thousand three hundred eighty three dollars and fifty nine cents ($30,383.59), in full and complete settlement of all claims in this matter, to be made within forty five (45) days of the issuance of the Final Order adopting the settlement agreement. [PROVIDER is not precluded from making some or all of the payment early, so long as the full amount due is completely paid within this deadline].

    3. PROVIDER and AHCA agree that full payment as set forth above will resolve and settle this case completely and release both parties from all liabilities arising from the findings in the audit referenced as C.I. No. 08-6184-000.

  7. Payment shall be made to:


    AGENCY FOR HEALTHCARE ADMINISTRATION

    Medicaid Accounts Receivable Post Office Box 13749 Tallahassee, Florida 32317-3749


  8. PROVIDER agrees that failure to pay any monies due and owing under the terms of this Agreement shall constitute PROVIDER'S authorization for the Agency, without further


    notice, to withhold the total remaining amount due under the terms of this agreement from any monies due and owing to PROVIDER for any Medicaid claims.

  9. AHCA reserves the right to enforce this Agreement under the laws of the State of Florida, the Rules of the Medicaid Program, and all other applicable rules and regulations.

  10. This settlement does not constitute an admission of wrongdoing or error by either party with respect to this case or any other matter. In fact, while AHCA alleged administrative errors it does not allege any submission of false claims, or fraud in connection with this matter.

  11. Each party shall bear its own attorneys' fees and costs, if any, except as set forth


    herein.


  12. The signatories to this Agreement, acting in a representative capacity, represent that they are duly authorized to enter into this Agreement on behalf of the respective parties.

  13. This Agreement shall be construed in accordance with the provisions of the laws of Florida. Venue for any action arising from this Agreement shall be in Leon County, Florida.

  14. This Agreement constitutes the entire agreement between PROVIDER and the AHCA, including anyone acting for, associated with or employed by them, concerning all matters and supersedes any prior discussions, agreements or understandings; there are no promises, representations or agreements between PROVIDER and the AHCA other than as set forth herein. No modification or waiver of any provision shall be valid unless a written amendment to the Agreement is completed and properly executed by the parties.

  15. This is an Agreement of settlement and compromise, made in recognition that the parties may have different or incorrect understandings, information and contentions, as to facts and law, and with each party compromising and settling any potential correctness or


    incorrectness of its understandings, information and contentions as to facts and law, so that no misunderstanding or misinformation shall be a ground for rescission hereof.

  16. PROVIDER expressly waives in this matter its right to any hearing pursuant to sections 120.569 or 120.57, Florida Statutes, the making of findings of fact and conclusions of law by the Agency, and all further and other proceedings to which it may be entitled by law or rules of the Agency regarding this proceeding and any and all issues raised herein. PROVIDER further agrees that it shall not challenge or contest any Final Order entered in this matter which is consistent with the terms of this settlement agreement in any forum now or in the future available to it, including the right to any administrative proceeding, circuit or federal court action or any appeal.

  17. This Agreement is and shall be deemed jointly drafted and written by all parties to it and shall not be construed or interpreted against the party originating or preparing it.

  18. To the extent that any provision of this Agreement is prohibited by law for any reason, such provision shall be effective to the extent not so prohibited, and such prohibition shall not affect any other provision of this Agreement.

  19. This Agreement shall inure to the benefit of and be binding on each party's successors, assigns, heirs, administrators, representatives and trustees.

  20. All times stated herein are of the essence of this Agreement.


  21. This Agreement shall be in full force and effect upon execution by the respective parties in counterpart.

  22. In the event either party breaches this Agreement, the costs and attorney fees


incurred by the non-breaching party associated with enforcement or collection activity pertaining


to this Agreement shall be paid by the party breaching this Agreement to the non-breaching party.


PRESCRIPTION CENTERS, LLC d OLONIAL DRUGS

f 55 E t New England Avenue

/Winter Park, Florida 32789


Dated: G ( ·i S\


Dated: b/ 2"=>


, 2009


2009


Title


FLORIDA AGENCY FOR HEALTH CARE ADMINISTRATION

2727 Mahan Drive, Mail Stop #3

Tallahassee, 3

{If - Dated: g/6 ,2009 Peter Williams

Inspect al

Dated: 8/s , 2009 Justin enior 7

General Counsel

C:

/Yv:_,

<z "'-- Dated: t le3t , 2009

di de

Kim ellum l

Chief Medicaid Counse

I Dated: q

Kell

Assistant General Counsel


,\ I , 2009


Docket for Case No: 09-000724MPI
Issue Date Proceedings
Aug. 13, 2009 Final Order Closing File.
Jun. 26, 2009 Order Relinquishing Jurisdiction and Closing File. CASE CLOSED.
Jun. 26, 2009 Motion to Relinquish Jurisdiction filed.
Jun. 15, 2009 CASE STATUS: Pre-Hearing Conference Held.
Jun. 12, 2009 Notice of Telephonic Status Conference (status conference set for June 15, 2009; 3:00 p.m.).
Jun. 08, 2009 Petitioner's Second Request for Production of Documents filed.
Jun. 08, 2009 Petitioner's Second Interrogatories to Respondent filed.
Jun. 08, 2009 Motion for Expedited Discovery Responses filed.
Jun. 05, 2009 AHCA's Motion for Case Management/Pretrial Conference filed.
May 07, 2009 Order Granting Continuance and Re-scheduling Hearing (hearing set for July 1, 2009; 9:00 a.m.; Tallahassee, FL).
May 04, 2009 Letter to Judge Clark from D. Patel and S. Amin regarding request for continuance filed.
May 01, 2009 Response to Respondent's Letters Filed with the Division filed.
Apr. 23, 2009 Letter to K. Bennett from D. Patel and S. Amin regarding original overpayment and request that hearing be hled on June 12, 2009 filed.
Apr. 17, 2009 Letter to Judge Clark from D. Patel and S. Amin regarding request for opportunity to explain reasonings for disputing calculations of overpayment filed.
Apr. 15, 2009 Order Granting Continuance and Re-scheduling Hearing (hearing set for May 12, 2009; 9:00 a.m.; Tallahassee, FL).
Apr. 15, 2009 Letter to Judge Clark from D. Patel and S. Amin regarding request for continuance filed.
Mar. 30, 2009 Petitioner`s First Request for Production of Documents filed.
Mar. 30, 2009 Petitioner`s First Request for Admissions filed.
Mar. 30, 2009 Petitioner`s First Interrogatories to Respondent filed.
Mar. 30, 2009 Notice of Service of Interrogatories, Request for Admissions & Request for Production of Documents filed.
Feb. 24, 2009 Order of Pre-hearing Instructions.
Feb. 24, 2009 Notice of Hearing (hearing set for April 30, 2009; 9:00 a.m.; Tallahassee, FL).
Feb. 18, 2009 Response to Initial Order filed.
Feb. 12, 2009 Initial Order.
Feb. 11, 2009 Final Audit Report filed.
Feb. 11, 2009 Request for Administrative Hearing filed.
Feb. 11, 2009 Order of Referral to Division of Administrative Hearings filed.
Feb. 11, 2009 Notice (of Agency referral) filed.

Orders for Case No: 09-000724MPI
Issue Date Document Summary
Aug. 10, 2009 Agency Final Order
Source:  Florida - Division of Administrative Hearings

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