PHILADELPHIA, PA — Lehigh Valley Hospital Network, Inc. (LVHN) has agreed to pay $2.75 million to settle allegations that it failed to adhere to critical safeguards under the Controlled Substances Act (CSA), according to an announcement from United States Attorney David Metcalf.
The settlement addresses serious compliance failures, including multiple incidents of drug diversion at LVHN’s Cedar Crest pharmacy. Federal authorities allege that on approximately 40 separate occasions, a pharmacy technician illicitly used a colleague’s password to access and steal controlled substances. To conceal these thefts, the technician reportedly created fictitious records, undermining the integrity of pharmacy inventory controls.
Beyond the Cedar Crest incidents, LVHN was also accused of broader deficiencies across certain facilities. These included inadequate security measures and procedures, resulting in improper transfers of controlled substances between inpatient and outpatient pharmacies as well as hospice locations, all without proper documentation. Additionally, authorities claimed that LVHN did not consistently maintain accurate records of its controlled substance inventories, a critical requirement under federal law designed to prevent diversion and misuse.
In response to these findings, LVHN took significant corrective steps. The health system has worked closely with the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Drug Enforcement Administration (DEA) to identify vulnerabilities, enhance physical security, and implement advanced diversion-detection software. LVHN also invested in staff training and brought in experienced personnel and consultants to bolster compliance with federal standards.
U.S. Attorney David Metcalf emphasized the importance of rigorous compliance in combating the opioid crisis, stating, “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.” Metcalf acknowledged LVHN’s cooperation, noting that penalties could have been higher had the health system not voluntarily disclosed the violations and collaborated to improve safeguards.
Thomas Hodnett, Special Agent in Charge of the DEA Philadelphia Field Division, underscored the agency’s commitment to ensuring accountability among medical providers, stating, “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.”
The investigation was led by Assistant U.S. Attorneys Peter Carr and Charlene Keller Fullmer, with support from former auditor Dawn Wiggins.
Federal authorities noted that the settlement resolves allegations only, and there has been no admission or determination of liability.
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