STATE OF FLORIDA . AGENCY FOR HEALTH CARE ADMINISTRATION AS 2p SEP -8 2 2y STATE OF FLORIDA AGENCY FOR HEALTH CAREADMINISTRATION, Petitioner, CASE NO. 08-2400MPI RENDITION NO.: AHCA-08- G'TES'T “S80 - VS. FIRST CHOICE PHARMACY SERVICES, LLC ee Respondent. / e@ Sah ee FINAL ORDER ve THE PARTIES resolved all disputed issues and executed a stipulation and agreement, which is attached and incorporated by reference. The parties are directed to comply with the terms of the attached stipulation and agreement. Based on the foregoing, this file is CLOSED. DONE AND ORDERED on this the 4 day of hege-s F _, 2008, in Tallahassee, Leon County, Florida. OLLY BENSON, SECRETARY Agency for Health Care Administration Case No. 08-2400MPI AHCA vs. First Choice Pharmacy Services, LLC Final Order A PARTY 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 BY LAW, 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: Brian A. Kahan, Esquire Attorney for the Respondent 1800 NW Corporate Boulevard Suite #200 Boca Raton, Florida 33431 Debora E. Fridie., Senior Assistant General Counsel Attorney for the Agency Agency for Health Care Administration, MS #3 (Interoffice) Diane Coumbe, Senior Pharmacist Agency for Health Care Administration, MP1, MS # 6 (Interoffice) Finance & Accounting, MS # 14 (Interoffice) Eleanor M Hunter, Administrative Law Judge Division of Administrative Hearings Fax: (850)921-6847 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing was served to the above named addresses by U.S. Mail this Shay of Sy be-72008. Richard Shoop, Agency Clerk Agency for Health Care Administration 2727 Mahan Drive, Bldg. 3, Mail Stop #3 Tallahassee, Florida 32308-5403 (850) 922-5873 STATE OF FLORIDA DIVISION OF ADMINISTRATIVE HEARINGS AGENCY FOR HEALTH CARE ADMINISTRATION, Petitioner, vs. Case No. 08-2400MPI Provider No. 106174700 . C.I. No. 08-6067-000 FIRST CHOICE PHARMACY SERVICES, L.L.C., Respondent. / STIPULATION AND AGREEMENT The Petitioner, AGENCY FOR HEALTH CARE ADMINISTRATION (a/k/a and hereinafter “AHCA” OR “Agency”), and the Respondent, FIRST CHOICE PHARMACY, L.L.C., (a/k/a and hereinafter “PROVIDER”), by and through the undersigned, hereby stipulate and agree as follows: 1. The two parties enter into this agreement for the purpose of memorializing the resolution to this matter. 2. PROVIDER was a Medicaid provider in the State of Florida, operating under provider number 106174700, subsequently selling its business effective October 1, 2007, and is no longer a Medicaid provider. 3. In its Final Audit Report, C.I. No 08-6067-000, (the "Audit Letter" or “FAR”) dated April 24, 2008, AHCA notified PROVIDER that review of Medicaid claims performed by Medicaid Page 1 of 10 Case No. 08-2400MPI C.I. No. 08-6067-000 First Choice Pharmacy Services, L.L.C. vs. AHCA Stipulation and Agreement Program Integrity (MPI) indicated that, in its opinion, some claims in whole or in part were not covered by Medicaid. The Agency sought repayment of an overpayment in the amount of "$175,298.35. AHCA also notified PROVIDER in the FAR that it is seeking sanctions in the form of a $500.00 fine, and a $5,000.00 fine, for total fines in the amount of $5,500.00. The sanctions were determined pursuant to Rule 59G-9.070, Florida Administrative Code. In response, PROVIDER petitioned for a formal administrative hearing. After the provider requested a formal administrative hearing, AHCA reviewed documentation that was previously unavailable to them. Based upon that review, AHCA adjusted the overpayment to $133,796.97. PROVIDER has agreed to pay the overpayment amount of $133,796.97 plus sanction fines in the total amount of $5,500.00 for a total repayment amount of $139,296.97. 4. In order to resolve this matter without further administrative proceedings, PROVIDER and AHCA expressly agree as follows: (a) AHCA will accept the payment set forth herein as a complete resolution of the overpayment issues arising from the MPI review cited in paragraph 3 above. (b) PROVIDER agrees to pay the adjusted overpayment amount of one Hundred Thirty Three Thousand Seven Hundred Page 2 of 10 Case No. c.1. No. 08-2400MPI 08-6067-000 First Choice Pharmacy Services, L.L.C. vs. AHCA Stipulation and Agreement _Ninety-Six and 97/100 Dollars. ($133,796.97), a sanction in the amount of Five Thousand and 00/100 Dollars ($5,000.00), and a sanction in the amount of Five Hundred and 00/100 Dollars ($500.00), for a total amount of One Hundred thirty Nine Thousand Two Hundred Ninety-Six and 97/100 Dollars ($139,296.97). The adjusted overpayment amount plus fines, in the total amount of $139,296.97 shall be paid as follows: Within thirty days of the issuance of the Final Order, the Provider shall pay Twenty Thousand and 00/100 Dollars ($20,000.00). Within thirty (30) days after payment of the $20,000.00 initial payment, PROVIDER agrees to make the first installment payment to AHCA of Ten Thousand Four Hundred Eighty Eight and 07/100 Dollars ($10,488.07). PROVIDER shall pay each subsequent installment payment on the balance due within thirty (30) days of the due date of the previous payment until the overpayment amount is paid in full, by no later than twelve (12) months of the date of the issuance of the Final Order. In the event that the PROVIDER pays the balance due early, there is no penalty for early payment. The outstanding balance of $139,296.97 will accrue interest at the rate as set Page 3 of 10 Case No. 08-2400MPI C.I. No. 08-6067-000 First Choice Pharmacy Services, L.L.C. vs. AHCA Stipulation and Agreement (c) (da) (e) (f) forth in Section 409.913 (25) (c),. Florida Statutes, until the balance is paid in full. AHCA retains the right to perform a 6-month follow-up review. PROVIDER is responsible for ensuring timely delivery of the payment. Failure to timely make the payment will render the balance due and payable immediately, with interest, and interest will continue to accrue until the entire balance is paid. PROVIDER and AHCA agree that full payment as set forth above will resolve and settle this case completely and release all parties from all liabilities arising from the findings in the audit referenced as C.1I. Number 08-6067-000. PROVIDER agrees that it will not rebill the Medicaid Program in any manner for claims that were not covered by Medicaid, which are the subject of the audit in this case. PROVIDER agrees to fully cooperate with any follow up reviews conducted by the Agency. Payment shall be made to: AGENCY FOR HEALTHCARE ADMINISTRATION Medicaid Accounts Receivable Post Office Box 13749 Tallahassee, Florida 32317-3749 Page 4 of 10 Case No. 08-2400MPI C.I. No. 08-6067-000 First Choice Pharmacy Services, L.L.C. vs. AHCA Stipulation and Agreement And payment shall clearly indicate that it is per a stipulation and agreement and shall reference the C.I. Number and the Provider Number. 6. 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. 7. AHCA reserves the right to enforce this Stipulation and Agreement under the laws of the State of Florida, the Rules of the Medicaid Program, and all other applicable rules and regulations. 8. The parties agree to bear their own attorney’s fees and other costs, if any. 9. As a part of this Stipulation and Agreement, PROVIDER agrees that AHCA may impose administrative sanctions pursuant to Rule 59G-9.070, Florida Administrative Code, as referenced in paragraph 3 above. 10. The signatories to this Agreement, acting ina representative capacity, represent that they are duly authorized to enter into this Agreement on behalf of the respective parties. Furthermore, PROVIDER agrees that its signature alone Page 5 of 10 Case No. 08-2400MPI C.I. No. 08-6067-000 First Choice Pharmacy Services, L.L.C. vs. AHCA Stipulation and Agreement binds PROVIDER to make the payment as set forth in this agreement. PROVIDER shall furnish the actual signed Stipulation and Agreement to AHCA; however a facsimile copy shall be sufficient to enable AHCA to cancel a hearing scheduled in this case. 11. 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. 12. This Agreement constitutes the entire agreement between PROVIDER and 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 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. 13. 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 Page 6 of 10 Case No. 08-2400MPI C.1I. No. 08-6067-000 First Choice Pharmacy Services, L.L.C. vs. AHCA Stipulation and Agreement misunderstanding or misinformation shall be a ground for rescission hereof. This Stipulation and Agreement does not constitute an admission of wrongdoing or error by either party with respect to this case or any other matter. However, the parties believe that this matter should be resolved because the parties have agreed to the terms contained within this agreement. 14. 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 the Agency should issue a Final Order which is consistent with the terms of this Stipulation and Agreement, and which adopts this agreement and closes this matter. 15. PROVIDER does hereby discharge the State of Florida, Agency for Health Care Administration, and its agents, representatives, and attorneys of and from all claims, demands, actions, causes of action, suits, damages, losses and expenses, of any and every nature whatsoever, arising out of or in any way related to this matter, C.I. No 08-6067-000, and AHCA’s actions herein, including, but not limited to, any claims that were or Page 7 of 10 Case No. 08-2400MPI C.I. No. 08-6067-000 First Choice Pharmacy Services, L.L.C. vs. AHCA Stipulation and Agreement may be asserted in any federal or state court or administrative forum, including any claims arising out of this agreement, by or on behalf of Provider. 16. This Stipulation and 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. 17. To the extent that any provision of this stipulation and 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 Stipulation and Agreement. 18. This Stipulation and Agreement shall inure to the benefit of and be binding on each party’s successors, assigns, heirs, administrators, representatives and trustees. 19. All times stated herein are of the essence in this Stipulation and Agreement. 20. This Stipulation and Agreement shall be in full force and effect upon execution by the respective parties in counterpart. Page 8 of 10 Case No. 08-2400MPI C.T. No. 08-6067-000 First Choice Pharmacy Services, L.L.C. vs. AHCA Stipulation and Agreement _ PETITIONER FIRST CHOICE PHARMACY SERVICES, L.L.C. BY: Date: BY: BRIAN A. KAHAN, ESQUIRE Attorney for Petitioner FIRST CHOICE PHARMACY. SERVICES, L.L.c. Date: | alehe , 2008 Page 9 of 10 Case No. 08-2400MPI C.1I. No. 08-6067-000 First Choice Pharmacy Services, L.L.C. vs. AHCA Stipulation and Agreement AGENCY FOR HEALTH CARE ADMINISTRATION 2727 Mahan Drive, Mail Stop #3 Tallahassee, FL 32308-5403 BY: WA [Lz D. KENNETH am Interim Inspector General o Date: o/ #2. , 2008 . 4 BY: a CRAIG ITH General Counsel Date: E/upok , 2008 BY: pl donc (rnd! DEBO RA E. FRIDIE Assistant General Counsel Date: July at , 2008 Page 10 of 10

Docket for Case No: 08-002400MPI