Sovah Health to Pay United States $4.36 Million to Settle Claims of Controlled Substance Act Violations

ABINGDON, Va. – Sovah Health has agreed to pay the United States $4.36 million to settle claims that the hospital system violated the Controlled Substances Act (CSA) on quite a few events between 2017 and 2020.  As half of the decision, Sovah Health additional agreed to be topic to a interval of 4 years of elevated compliance and oversight throughout which any failure to adjust to its obligations could lead to contempt of court docket findings that would lead to further financial sanctions and injunctive aid.  The settlement is the third-largest civil penalty ever obtained from a hospital system underneath the Controlled Substances Act and the most important ever within the Fourth Circuit.  

The claims focus on Sovah Health’s failure to have efficient controls in place to forestall the diversion of highly effective painkilling prescription opioids. Sovah Health is a regional well being care supply system comprised of a hospital with two campuses – Danville and Martinsville. In 2017, Danville (previously Danville Regional Medical Center) and Martinsville (previously Memorial Hospital of Martinsville & Henry County) united to kind Sovah Health.

From 2017 to 2019, a Sovah Health worker diverted greater than 11,000 Schedule II managed substances from Sovah Health. From January to May 2020 a second Sovah Health worker tampered with Fentanyl vials and hydromorphone injectables by changing the managed substance with saline and diverting the managed substance. The United States alleged Sovah Health failed to present efficient controls and procedures to guard in opposition to the diversion of managed substances, crammed orders for managed substances with out a system in place to disclose suspicious orders of managed substances, and failed to preserve readily retrievable data of managed substances.

“As opioid overdose deaths skyrocket, it is critical that health care companies are held accountable when they fail to effectively safeguard these powerful prescriptions within their facilities,” stated U.S.  Attorney Christopher R. Kavanaugh for the Western District of Virginia. “The oversight provided by this resolution will ensure future compliance involving these important but potentially deadly substances, and the United States Attorney’s Office for the Western District of Virginia will continue to vigorously pursue these cases with our federal and local partners in order to protect Virginia’s communities.”

“Today’s settlement sends a clear message to all registrants that it is essential to maintain effective controls to prevent the diversion of controlled substances” stated DEA Washington Division Special Agent in Charge Jarod Forget.  “DEA is devoted to fight the prescription drug abuse drawback in Virginia and all through the nation and to maintain all DEA registrants accountable.”

“The FDA oversees the U.S. drug supply to ensure that patients receive medicines that are safe and effective,” stated Special Agent in Charge George A. Scavdis of the FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to protect the public health by holding accountable health care companies that fail to safeguard their prescription drug inventory and thereby compromise their patients’ health and comfort.”

“With opioid deaths and overdoses at record-breaking highs, especially across Southside Virginia, there must be zero tolerance of trusted health professionals engaging in drug diversion,” stated Colonel Gary T. Settle, Virginia State Police Superintendent. “For the safety and protection of Virginia’s communities, our Virginia State Police Drug Diversion special agents, in collaboration with our local and federal public safety partners, will continue to aggressively pursue investigations related to the illegal distribution of Fentanyl and other prescription drugs.”

The settlement, which is accessible

right here, resolves Sovah Health’s potential civil and prison legal responsibility primarily based on the investigation. As half of the decision, Sovah Health has dedicated to further compliance measures together with, however not restricted to, having cameras in any respect Automated Dispensing Machines to seize the exercise of inserting/eradicating managed substances; promptly reporting losses and diversion of managed substances; taking and reporting disciplinary motion taken in opposition to staff discovered to have been answerable for theft, diversion or loss of managed substances; sustaining a compulsory random drug testing program for workers; and conducting a full bodily stock of all federally scheduled II-V managed substances extra ceaselessly than required by legislation.

Assistant U.S. Attorneys Justin Lugar and Randy Ramseyer represented the United States on this matter.

The investigation was performed by the Food and Drug Administration – Office of Criminal Investigations, the Drug Enforcement Administration – Roanoke Resident Office Diversion Group, and the Virginia State Police.

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