In a settlement that highlights the ongoing challenges in the healthcare industry’s management of controlled substances, Lehigh Valley Hospital Network (LVHN) will be coughing up $2.75 million to resolve allegations of drug diversion and non-compliance with the Controlled Substances Act (CSA). According to an announcement on the U.S. Attorney’s Office website, the network’s own disclosure led to the settlement, detailing approximately 40 instances where a pharmacy technician at LVHN’s Cedar Crest pharmacy diverted controlled substances using another employee’s password.
These allegations also include ineffective controls at LVHN facilities that failed to prevent the unlawful transfer of controlled substances across inpatient and outpatient pharmacies, and hospice facilities, an issue exacerbated by inaccurate record-keeping practices. U.S. Attorney David Metcalf underlined the importance of the healthcare sector’s role in curtailing the opioid crisis, asserting, “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,” as mentioned by the U.S. Attorney’s Office. Despite the infractions, credit was given to LVHN for its full cooperation and efforts to enhance CSA compliance post-discovery.
Alongside the financial settlement, LVHN has devoted significant resources to prevent future issues, including upgrades to physical security, adoption of diversion-detection software, and the recruitment of employees and consultants well-versed in CSA regulations. “While the penalties here are substantial, they may have been far greater but for LVHN’s disclosures and cooperation,” said Metcalf, reflecting on the proactive measures undertaken by LVHN following the revelation of the discrepancies, as reported by the U.S. Attorney’s Office…