CVS Caremark becomes frequent target of government probes

Does the various Fed/State/Local bureaucrats see these and other fines that are just a on-going source of “free money” to put in their coffers? Somewhere between seldom and never do the corporation execs every go to jail/prison… could the “theory” behind this by the bureaucrats… chances are  is that these people are just going to find another way to try and circumvent the system (break the law) to make money for their company. They are probably habitual offenders and  could be a on-going source of revenue. CVS is not the only entity in this group of repeat offenders. From a bureaucrat’s viewpoint… beats raising taxes or having to cut expenses in their dept.

When a company, like CVS/Caremark, that generates ~ 10 MILLION per day in profits… fining them 10 MILLION dollars is like fining the typical person a DAY’S PAY. It would appear that CVS/Caremark and other companies that are habitual rule breakers the fines that they pay in the MILLIONS are just a inconvenience … as long as they are allowed to state that ” … we admit  no wrong doing …”

From the article:

Michael and Peppi Fowler say they filed a whistle-blower suit against the company because it often put profits ahead of patients when they worked there from 1992 to 2004. The Fowlers were pharmacists at a Caremark mail-order facility in southern Florida.

The Fowlers said they watched workers use blow dryers and irons to remove patients’ mailing labels from returned medicine and resell it in violation of state health laws. They alleged the company billed twice for the same medicine in some cases.

“Whenever they do get caught, it’s a slap on the wrist,” Michael Fowler said. “What’s a couple million dollars in fines for them?”

CVS Caremark agreed to pay nearly $20 million last year to resolve the Fowlers’ allegations that it defrauded state pension systems in California, Illinois and Florida. The company denied wrongdoing and said it settled to avoid the expense of further litigation.

Also in the article:

One of the pension funds involved in that settlement, the California Public Employees’ Retirement System, rehired CVS Caremark last year for pharmacy management. CalPERS said it is satisfied with the company’s performance.

How many of individual consumers would continue to do business with a entity that had defrauded/cheated them? I wonder how many “gift cards” CVS had to give to the decision makers at the California Public Employeees Retirement System to keep them from moving their business ?

 

 

Filed under: General Problems