LVHN to pay $2.7M in settlement over stolen drugs

Listen to this article

Lehigh Valley Health Network will pay $2.7 million to resolve allegations that it failed to comply with provisions of the Controlled Substances Act (CSA) leading to the theft of controlled substances by an employee. 

United States Attorney David Metcalf announced the settlement Wednesday that resolves LVHN‘s disclosure to the United States that on approximately 40 occasions, a pharmacy technician at LVHN’s Cedar Crest pharmacy used another employee’s password to access, remove, and divert controlled substances. 

The employee allegedly created fictitious reports to hide the discrepancies of controlled substances. 

Metcalf said in a release that the claims resolved by the settlement are allegations only and there has been no determination of liability. 

The settlement also resolves allegations that, at certain LVHN facilities, the controls and procedures that LVHN had in place failed to effectively guard against theft. LVHN also allegedly failed to maintain complete and accurate records of its stock of controlled substances. 

Metcalf said since the discovery of the thefts at the health network’s Cedar Crest campus, LVHN has worked cooperatively 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 develop better practices to prevent further incidents. 

He said that LVHN has expended considerable resources on physical security enhancements, training, diversion-detection software, and the hiring of employees and consultants knowledgeable in CSA compliance. 

“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,” said Metcalf. “In fashioning appropriate resolutions, we also give credit to DEA registrants like LVHN who act in good faith to report potential CSA violations, prevent further deficiencies, and improve compliance efforts. While the penalties here are substantial, they may have been far greater but for LVHN’s disclosures and cooperation.”  

The case was handled by Assistant U.S. Attorneys Peter Carr and Charlene Keller Fullmer, and former auditor Dawn Wiggins. 

Lehigh Valley Business has reached out to LVHN for comment.