Walgreen record keeping Failures Widespread.
"In addition to the fine", The settlement also closes similar investigations that were being held in Colorado, New York, and Michigan", Ferrer of the DOJ said.
4 additional Distribution centers where being investigated as well as Florida and money settlements went to each state in the settlement.
We started this tread based on the 340B Gov't program, so lets not confuse the subject.
The subject was the financial Accounting for 340B Drug inventory.
as was reported in the OIG report.
There are 2 types of 340B Drug inventory models.....
1) The Pre purchasing of Drugs, model.
2) Replenishment of Drugs, model.
I'm would think that Walgreens a Major direct Drug purchaser from Manufactures was using the Pre purchasing model for its 340B prescriptions, Walgreens Co also was the Warehouse supplier to its retail stores. So the replenishment model does not make sense.
340B drug Diversion, over payment of Manufactures Rebates and patient overcharges were some of the Issues the OIG was looking at in the 340B program...
As you correctly stated, IMHO, turnover of Walgreens retail Pharmacy 340B inventory is perhaps 8 to 10 times slower than in a J.I.T system.
But the question I asked remains, will Walgreens managements record keeping Failures cause a restatement of recorded profits to the SEC, inflate GAAP inventory valuation by co-mingeling Inventory costs, and then allow smoothing of earning as the 340B drug inventory was pre-purchased or over-purchased and in stock for non 340B patients. these 340B drugs & discounts now could be cost adjusted into earnings as needed..
I worked for W.R.Grace Healthcare division and Know earnings smoothing happened, after the DOJ investigation..
So, until a follow up from Walgreens on Senator Grassley letter or inquiry this is a open issue.
Regards,
