Pennsylvania health network settles federal allegations of drug theft, controlled substances act violations

ALLENTOWN, Pa. (WHTM) — A Pennsylvania hospital system will pay $2.75 million to settle federal allegations of controlled substance act violations, the U.S. Attorney’s Office for the Eastern District of Pennsylvania said Wednesday.

Lehigh Valley Health Network (LVHN) agreed to the settlement, which centered on federal allegations that a pharmacy technician at the network’s Cedar Crest pharmacy near Allentown diverted controlled substances using another employee’s password.

That employee, the U.S. Attorney’s Office alleged, also created fictitious reports to hide discrepancies.

Since the discovery of the thefts, LVHN worked with the U.S. Attorney’s Office and Drug Enforcement Agency to identify potential Controlled Substances Act violations and help prevent them.

“To that end, 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 said in a release.

“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 U.S. Attorney 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.”

LVHN was also accused of failing to effectively guard against theft and diversion of controlled substances and failing to maintain a complete and accurate record of its stock of controlled substances.

LVHN merged with Philadelphia-based Jefferson Health last year.