United States Attorney David Metcalf announced that Lehigh Valley Hospital Network, Inc. (LVHN) will pay $2.75 million to settle allegations of non-compliance with the Controlled Substances Act (CSA). The settlement addresses LVHN's disclosure of approximately 40 incidents where a pharmacy technician at Cedar Crest pharmacy used another employee’s password to access and divert controlled substances, creating fictitious reports to cover discrepancies.
Additionally, the settlement resolves claims that LVHN's controls and procedures were insufficient in preventing theft and diversion of controlled substances from inpatient pharmacies to outpatient pharmacies and hospice facilities. This allegedly resulted in improper transfers without documentation and incomplete record-keeping.
Following the discovery of these issues, LVHN collaborated with the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Drug Enforcement Administration (DEA) to identify CSA violations and improve practices. Efforts included enhancing physical security, implementing training programs, deploying diversion-detection software, and hiring experts in CSA compliance.
U.S. Attorney Metcalf emphasized their commitment to addressing the opioid crisis by holding medical institutions accountable for failing to prevent illegal diversion of controlled substances. He noted that while penalties are substantial, they could have been higher if not for LVHN’s cooperation.
Thomas Hodnett, Special Agent in Charge at DEA Philadelphia Field Division, stated that this settlement underscores DEA's commitment to ensuring medical providers adhere to laws when dispensing controlled substances.
The case was managed by Assistant U.S. Attorneys Peter Carr and Charlene Keller Fullmer along with former auditor Dawn Wiggins. It is important to note that the resolved claims are allegations only with no determination of liability made.
