Park Medical Pharmacy v. San Diego Orthopedic Associates Medical Group, Inc.

Park Medical Pharmacy (Park Medical) appeals a grant of summary judgment favoring defendant San Diego Orthopedic Associates Medical Group, Inc. (the Medical Group) on Park Medical’s complaint that the Medical Group was dispensing drugs in violation of the Business and Profession Code’s prohibition against physicians’ keeping a pharmacy. We affirm.

Factual and Procedural Background

The Medical Group and its physicians are located in the Mercy Medical Building. The physicians of the Medical Group individually dispense drugs on a for-profit basis to their workers’ compensation patients. When a workers’ compensation patient first registers with the Medical Group, he or she is given a form entitled “Worker’s Compensation Dispensing Disclosure.” This form tells the patient that a Medical Group physician can dispense some prescribed medications and that the patient has a choice of between obtaining the medications from the Medical Group physician or obtaining a prescription that may be filled at the pharmacy of the patient’s choice. The Medical Group keeps drugs in a secure area called the “Physician Dispensing Unit.” Each physician is required to individually purchase drugs…