A Manhasset pharmacy will not be allowed to serve the Medicaid population following an investigation by the Office of the Medicaid Inspector General (OMIG). 

Mercaldo Apothecary was denied its enrollment application to be a Medicaid provider. An onsite visit conducted by OMIG investigators revealed 38 expired drugs in the pharmacy’s inventory, including one that had expired in 2006. New York regulations prohibit carrying expired drugs in a pharmacy’s inventory without segregating the drugs from other medications. Investigators also found a dirty pharmacy refrigerator that lacked an inside thermometer, also a requirement for pharmacies, and that contained food items, which is prohibited.

The pharmacy sink had no hot running water, and its drain was clogged. New York regulations require that a pharmacy must have hot and cold running water in the compounding and dispensing area. The pharmacy counter was dusty and cluttered, and the store was in such disarray that wheelchair access to its aisles would not be possible. Federal regulations prohibit enrollment of an applicant with a location that limits access to people with disabilities into any program that receives federal reimbursement.

“The fact that this provider violated so many of Medicaid’s pharmacy standards has a direct bearing on their ability to provide quality medical services or supplies to Medicaid patients,” said Medicaid Inspector General James C. Cox, “and they will be prohibited from doing so as long as they continue to disregard basic standards meant to protect Medicaid consumers from such practices.”

The pharmacy was referred to the New York State Education Department’s Office of Professional Discipline for further investigation.

New Yorkers can assist the Office of the Medicaid Inspector General in fighting fraud, waste, and abuse by reporting potentially suspicious behavior or incidents.  OMIG encourages anyone who observes instances of potential Medicaid fraud, waste, or abuse to contact OMIG’s fraud hotline at 1-877-87-FRAUD or visit the Web site at www.omig.ny.gov. Tips can be completely anonymous and OMIG investigates information from all calls.

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Our mission is to enhance the integrity of the New York State Medicaid program by preventing and detecting fraudulent, abusive, and wasteful practices in the Medicaid program and recovering improperly expended Medicaid funds while promoting high-quality patient care.