13 WTHRPharmacy pays fine for jeopardizing patient information

Pharmacy pays fine for jeopardizing patient information

Bob Segall/Eyewitness News

Indianapolis - A local drug store has agreed to punishment for jeopardizing the private information of its customers.

13 Investigates found the problem in a dumpster loaded with patient records three years ago at Low Cost Pharmacy on the south side. Monday, the owner of the small drug store chain reached a settlement with the state pharmacy board.

The settlement requires additional training for all pharmacy staff to better protect customer privacy. Low Cost Pharmacy will receive a letter of reprimand from the Pharmacy Board and will pay a $250 fine to settle state charges that it improperly disposed of private patient information.

The state's attorney general's office says the settlement is designed to protect the public.

"This agreement will do that, in fact, and in addition to that, we believe it will eliminate any possibility because of these terms of any future HIPAA violation," said Deputy Attorney General Terry Richmond.

HIPAA is the law that protects patient records This spring, CVS agreed to a $2.25 million federal fine because of all the private patient records 13 Investigates discovered in its drugstore dumpsters. The state penalty against Low Cost Pharmacy is a relatively lenient one.

Last year, the pharmacy offered to pay $1,000 to settle with the state, but the attorney general's office refused that offer. Now, the state is getting just a fraction of that.

The $250 fine comes after Low Cost Pharmacy acted slowly in correcting its problem. In fact, after 13 Investigates told Low Cost Pharmacy about patient records found in its trash, we went back the very next week and found the same dumpster contained personal information on more than 100 additional customers. The drug store has since put a lock on its dumpster.

Neither the owner of the pharmacy, the pharmacy board, or the attorney general's office would discuss the case following today's settlement.

The board will return to the Government Center next month to decide what to do with Walgreens. That case has been pending before the board for years. Board members have made it very clear they are growing impatient with the process and want all the prescription privacy cases resolved.