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 allegations include a pharmacy technician at LVHN’s Cedar Crest pharmacy using another employee’s password to access and divert controlled substances on approximately 40 occasions. Fictitious reports were allegedly created to conceal these discrepancies.
The settlement also addresses claims that LVHN’s controls and procedures failed to prevent theft and diversion of controlled substances from inpatient pharmacies to outpatient pharmacies and hospice facilities, resulting in undocumented transfers. Additionally, LVHN allegedly did not maintain accurate records of its controlled substance inventory.
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 potential CSA violations and improve practices. Efforts included investing in physical security enhancements, training, diversion-detection software, and hiring CSA compliance experts.
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 in reporting potential violations and improving compliance efforts.
Thomas Hodnett, Special Agent in Charge of DEA Philadelphia Field Division, commented: “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 alongside former auditor Dawn Wiggins. It is important to note that the resolved claims are allegations only with no determination of liability made.
