United States Attorney David Metcalf announced that Lehigh Valley Hospital Network, Inc. (LVHN) has agreed to pay $2.75 million to settle allegations of non-compliance with the Controlled Substances Act (CSA). The allegations involved failures in preventing the diversion of controlled substances for illegal use.
The settlement addresses LVHN’s disclosure of approximately 40 incidents where a pharmacy technician at its Cedar Crest pharmacy used another employee’s password to access and divert controlled substances, creating fictitious reports to conceal discrepancies. It also resolves claims that LVHN’s controls and procedures were insufficient in preventing theft and diversion of controlled substances between inpatient pharmacies, outpatient pharmacies, and hospice facilities without proper documentation. Additionally, LVHN allegedly did not maintain accurate records of its controlled substance inventory.
Following the discovery of these issues at Cedar Crest, LVHN collaborated with the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Drug Enforcement Administration (DEA) to identify potential CSA violations and improve practices to prevent further diversions and recordkeeping deficiencies. This included investments in physical security enhancements, training, diversion-detection software, and hiring employees and consultants knowledgeable in CSA compliance.
U.S. Attorney Metcalf stated: “The U.S. Attorney’s Office is committed to aggressively combatting the opioid crisis on all fronts, including by holding hospitals and pharmacies responsible when they fail to take adequate steps to prevent controlled substances from being diverted for unlawful purposes.” He acknowledged LVHN’s cooperation: “While the penalties here are substantial, they may have been far greater but for LVHN’s disclosures and cooperation.”
Thomas Hodnett, Special Agent in Charge of DEA Philadelphia Field Division, emphasized DEA’s role: “DEA holds medical professionals to a high standard to protect public safety and ensure accountability, and this settlement demonstrates DEA’s resolve to maintain these standards.”
Assistant U.S. Attorneys Peter Carr and Charlene Keller Fullmer handled the case along with former auditor Dawn Wiggins.
It is important to note that the claims resolved by this settlement are allegations only; there has been no determination of liability.
