
In Trinidad, Colorado, Mt. San Rafael Hospital and three physicians associated with the institution have reached a settlement to pay $650,000 after allegations of improper prescriptions of opioids and other controlled substances surfaced. According to the U.S. Department of Justice, the hospital, along with Dr. Sheryll Castro-Flores, Dr. Joseph Jimenez, and Dr. Douglas McFarland, was alleged to have issued these prescriptions without legitimate medical purposes or beyond the bounds of normal professional practice.
The infractions, which unfolded between January 2016 and December 2023, involved numerous red flags, such as high daily doses of opioids, perilous drug cocktails, evidence of substance misuse, extended opioid use, cash transactions despite patients having insurance coverage, patients traveling long distances for prescriptions, and requests for early refills. The U.S. Attorney's office claimed that the hospital was also on the hook under the Controlled Substances Act for the illegal prescribing behavior of its staff, and under the False Claims Act for seeking government reimbursement for these illegitimate prescriptions.
In the financial reckoning of the settlement, Dr. Castro-Flores and Dr. Jimenez will each pay $112,500; Dr. McFarland will pay $100,000; and Mt. San Rafael Hospital will account for the remaining $325,000. “Doctors and the hospitals who employ them must prescribe controlled substances carefully to protect patients and the community from the dangers of overprescribing,” said United States Attorney Peter McNeilly, as per the U.S. Department of Justice. “We will continue to hold doctors and hospitals accountable when they disregard these important obligations.”









