Variability for Out-of-State Pharmacy Disciplinary Action Reporting Requirements

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Pharmacies and pharmacists (“Licensees”) are subject to disciplinary action in each state in which they hold an active license. Moreover, for those holding licenses in multiple states, disciplinary actions in one jurisdiction can lead a separate state board of pharmacy to impose its own discipline, including license suspension or revocation.  In order to limit or avoid further adverse action after being sanctioned by a state board of pharmacy, those holding licenses in multiple states must comply with the reporting requirements of each state they hold a license.         

Once a Licensee faces discipline from a state board of pharmacy, other states where the Licensee is credentialed may require the Licensee to report the discipline. However, Licensees are often unaware of such requirements, and receive additional, and sometimes avoidable, punishment. Unfortunately, navigating multi-state licenses can be complex and requires strict compliance with statutes and regulations in each state a Licensee holds a license.  Further, while many states provide a time frame in which out of state discipline must be reported, others are silent as to when the report must be filed.  For example, while about ten states require that the board of pharmacy be notified of out-of-state discipline within thirty days or more, approximately the same amount of state boards require notice in less than twenty days, with some requiring a report to be filed in as few as seven business days.  With respect to more flexible jurisdictions, there are states that only require out-of-state discipline to be reported at the time of license renewal.  To complicate matters further, states also differ as to what type of out-of-state actions require reporting to begin with.  Specifically, while nearly all states require reports of license suspensions or revocations, nine states mandate that licensees provide notice whenever a license is surrendered, even if voluntarily.  Conversely, a small minority of states only obligate Licensees to report criminal convictions or professional malpractice allegations. Consequently, Licensees may unknowingly fail to notify their boards in an appropriate time frame after applicable triggering events have occurred and expose themselves to additional sanction from out-of-state boards of pharmacy. 

Recently, Frier Levitt has encountered enforcement actions by several state boards of pharmacy disciplining Licensees based on out of state conduct even where a disciplinary action reporting deadline has not been missed.  In some cases, this automatic “piling on” occurred where the underlying original state disciplinary matter was a settlement agreement, citation, administrative fine, or consent order rather than a formal hearing decision. In other cases, states have attempted to automatically impose sanctions on a Licensee for relatively minor infractions not involving direct patient impact or harm, leading to cumulative discipline that far exceeds the gravity of the original infraction. The balance between public protection and regulatory overkill is increasingly being tipped toward the latter.

How Frier Levitt Can Help

Once disciplined, Licensees bear the additional responsibility of reporting the action to any other state in which they hold a license.  Complying with the requirements of multiple states’ board of pharmacy rules and regulations can be tenuous.  If your license has been disciplined and you hold a license in additional jurisdictions, contact us today.  Our attorneys have the experience and knowledge to guide you on state reporting requirements and avoiding further adverse action.