Catalyst loses $2.4B state pharmacy deal

Catalyst Health Solutions of Rockville lost out on a multibillion-dollar contract to provide pharmacy benefit management services to the state when the Board of Public Works on Wednesday voted 2-1 to award the $2.43 billion, five-year deal to a competitor, Express Scripts of St. Louis.

Voting no was Comptroller Peter V.R. Franchot (D). Gov. Martin O’Malley (D) backed Express Scripts, even though Catalyst in October contributed $100,000 to the Demorcatic Governors Association, which O’Malley chairs. Catalyst subsidiary Catalyst Rx held the previous four-year contract.

Under the contract, Express Scripts will provide pharmacy benefits management and prescription coverage for state employees, retirees, satellite organization employees, direct pay enrollees, and their respective eligible dependents, according to the board.

Catalyst did not immediately return email and phone messages seeking comment.

Slots generate $13M in January

Maryland’s two casinos brought in slightly less than $13 million in January, the Maryland Lottery announced Monday.

Hollywood Casino Perryville accounted for nearly $9.8 million of the revenue, with a daily revenue of $210.54 from each machine.

Casino at Ocean Downs brought in more than $3.1 million in January, with each machine bringing in $126.34 per day.

Since the start of the fiscal year, the casinos raked in more than $93.1 million.

The Casino at Ocean Downs has brought in more than $48 million since it opened on Jan. 4, 2011. The casino sees a spike in revenues during summer months, according to Maryland Lottery financial reports.

Labor Department sues Bethesda construction company

The U.S. Department of Labor has sued Dynasty Construction of Bethesda and its owner, John J. Barrett III, alleging that more than $775,000 from Dynasty's 401(k) plan for employees was invested in a fraudulent scheme in 2006.

That was almost all of the assets in the accounts of the 19 plan participants as of the end of 2005, claims the suit, filed in U.S. District Court in Greenbelt.

The suit alleges that Dynasty and Barrett failed to adequately or prudently research the credentials of the financial representative they retained and failed to research or analyze the investment of plan assets in the Transcontinental Airlines Employee Investment Savings Account. The investment savings account was a fraudulent scheme orchestrated by Louis Pearlman, who is serving 25 years in federal prison, according to any agency statement.

Forestville company settles with EPA for $158,880

Pamex Foods of Forestville has settled with the U.S. Environmental Protection Agency for $158,880 in a case that alleged violations of federal pesticide regulations.

The agency claimed that Pamex violated regulations by selling two unregistered pesticides, Fabuloso Aroma de Bebe and Clorox Magia Foral, from its distribution facility. Fabuloso Aroma was marketed as an antibacterial product and sold 161 times, while Clorox Magia was marketed as a disinfectant and sold once.

As part of the settlement, Pamex neither admitted nor denied liability for the alleged violations, but the company has certified it is now in compliance with the federal requirements.

Division of Labor and Industry continues to reduce elevator and boiler inspection backlogs

The Maryland Division of Labor and Industry continues to struggle with a backlog of inspections of boilers, pressure vessels and elevators, although it has reduced the backlog more than 80 percent in each area since 2009.

A recent audit of the division by the Department of Legislative Services shows that 2,933 of 52,939, or 3.3 percent of the state's boilers and pressure vehicles, were overdue for inspection for periods ranging from three months to more than five years. Also, 1,549 of 21,299 or 3.6 percent of the state's elevators, were overdue for periods ranging from three months to four years. Overdue inspections for boilers and pressure vehicles have plagued the division since 1977, with inspection shortages among elevators beginning in 1997. The division has attributed the backlogs to a lack of staff.

Acknowledging the auditors' concerns and recommendations to eliminate the backlog, the division said it has been using third-party inspection resources to reduce backlogs and has reduced its elevator inspection backlog by 88 percent since 2009 and its boilers and pressure vehicles backlog by 83 percent. When the division began its plans to reduce this problem in 2009, elevator backlogs were at 28 percent while boilers and pressure vehicle backlogs were at 19 percent. The division was able to reduce both areas by 58 percent and 46 percent, respectively, in fiscal 2012.

The audit also said the division has not established comprehensive procedures for tracking the submission and review of certified payrolls received from certain contractors to monitor compliance with the state's prevailing wages and has not always deposited and verified cash receipts in a timely manner.