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Pharmacist made fraudulent claims

Media statement, April 17th, 2015

Pharmacist made fraudulent claims


A pharmacist has been sentenced in the Auckland District Court today to nine months home detention for dishonest use of documents after a case was successfully taken by the Ministry of Health.

The Ministry says Terence John Osborne, 65, falsely claimed more than $150,000 in subsidies on prescription medicines.

The claims were for drugs dispensed through three pharmacy businesses – Osborne’s Pharmacy, Airport Pharmacy Ltd, and the now defunct Gulf Harbour Pharmacy Ltd.

The offending included:

•Using returned or recycled drugs to fill new scripts, but then claiming subsidies as if the scripts were for new drugs

•Claiming for the more expensive of two drugs, while actually dispensing the cheaper generic version.

An investigation by Ministry of Health auditors found that over 61,000 more tablets were claimed to have been dispensed, compared to how many were physically purchased from pharmaceutical wholesalers.

The Ministry also sought reparation in full of $155, 648.44. The court was advised this payment has occurred.

The Ministry’s Acting Director of DHB Performance, John Hazeldine, says claiming under the pharmacy subsidy scheme is honesty-based and the vast majority of pharmacists carry out their important work within that system.

“But as this case shows, Ministry of Health investigators work hard to ensure that funding reaches those people for whom it is intended.”

The Health Integrity Line - 0800 424 888 - is a free, anonymous 24/7 phone line for members of the public to report fraud or any other activities they are concerned about in the Health system.

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