What Happened
Mt. San Rafael Hospital and Rural Health Clinic in Trinidad, Colorado, and three employed physicians, Dr. Sheryll Castro-Flores, Dr. Joseph Jimenez and Dr. Douglas McFarland, agreed to pay a combined $650,000 to resolve allegations announced in November 2025. The United States alleged that between January 2016 and December 2023 the physicians issued invalid prescriptions for controlled substances, including opioids, that were not for a legitimate medical purpose or were outside the usual course of professional practice, and that the hospital was liable for its employees' prescribing. The hospital agreed to pay $325,000 and the doctors between $100,000 and $112,500 each. They did not admit liability.
“have agreed to pay a combined $650,000 to resolve allegations that they violated the Controlled Substances Act by unlawfully dispensing controlled substances”
Related Guidance
- 15 Red Flags of Drug Diversion — Behavioral and transactional indicators of diversion.
- Investigation Playbook — How to investigate suspected diversion inside an organization.