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Assisted living sent my family member home for weekend stay with another residents insulin pen in error. Luckily, it was the correct type of insulin, but labeled for another patient and different directions. We gave her the correct dose, but this could have been deadly. I plan to report to health dept, is that correct plan?

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Maybe the label was wrong and the prescription was correct. They can change a label to correspond with the prescription. They can't ulter the perscription only a Dr or Nurse practioner can do that.
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I did report it to the facility nurse as soon as I found it. Her response was “thanks for letting us know, we will re-label pen when she returns”. Which is also illegal, for a nurse to relabel a Rx, (we were 3 hours away from facility visiting family).
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This should be reported.
But not to the Health Department.
Medicare has a website where things can be reported.
Reporting/ making the Director of Nursing aware of the situation.
This is also a HUGE violation of HIPAA. You can file a complaint on the U.S. Department of Health and Human Services website.
Under HIPAA an entity can not retaliate against you for filing a complaint. (if they do report that immediately)
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I would have called as soon as I saw the error. Same insulin or not. Now that resident with the different dosage...they are wondering where her pen is.

This is a big deal. If this was given to you by the Nurse, you need to go over her head. Meticulous records must be kept.
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