New Law Allows Texas State Board of Pharmacy to Scrutinize Compounding Pharmacies’ Relationships with Physicians

The federal government has focused on compounding pharmacies and pharmacists for fraud and abuse investigations in recent years, and now the great state of Texas has joined in.

The Dallas Morning News (2/9, Krause) reports that a law that went into effect in September 2015 allows the Texas State Board of Pharmacy to “inspect a pharmacy’s ‘financial records’ in response to a specific complaint against the pharmacy.” The Board also can discipline a pharmacy or refer the case for criminal prosecution if impropriety – for example, kickbacks to physicians or failure to appropriately inform patients of financial relationships – is found. The goal of this broadened legal authority is to expand the Board of Pharmacy’s ability to take action against compound pharmacies. According to the article, physicians, too, may find themselves facing investigation or penalties under this heightened scrutiny.

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