Colorado Hospital and Three Doctors to Pay $650,000 in Opioid Prescribing Settlement

Overview

• Federal prosecutors announced the Nov. 24 civil settlement with Mt. San Rafael Hospital in Trinidad, Colorado, and physicians Sheryll Castro-Flores, Joseph Jimenez, and Douglas McFarland.
• Payments total $650,000: $325,000 from the hospital, $112,500 each from Drs. Castro-Flores and Jimenez, and $100,000 from Dr. McFarland.
• The United States alleges the doctors issued invalid or unsafe controlled‑substance prescriptions between January 2016 and December 2023, including high‑dose opioids and dangerous combinations.
• Investigators cited ignored red flags such as signs of substance abuse, prolonged opioid use, cash payments despite insurance, long‑distance travel for prescriptions, early refill requests, and high daily doses.
• The matter resolves civil claims under the Controlled Substances Act and False Claims Act without any admission of liability, following an investigation by the DEA’s Rocky Mountain Division and HHS‑OIG.