The College of Physicians and Surgeons of Alberta says Oswald Wachtler's permit will be taken away for six months.
If he resumes his practice after that, his prescriptions will have to undergo regular audits.
Wachtler has also been ordered to pay almost $83,000 in costs related to the college's investigation.
The doctors group found Wachtler guilty in September 2007 and imposed several penalties and restrictions, but a followup found evidence that he was not sticking to the conditions.
Wachtler challenged the decision in the Alberta Court of Appeal, but lost.