WHEELING, W.Va. — The offices of West Virginia’s federal prosecutors say they’ve reached a settlement agreement with WVU Health System following an investigation into how drugs were stored and secured at various facilities across the state operated by the system.
The federal prosecutors said the $4.1 million settlement and three-year Memorandum of Agreement with WVU Health System, the parent name of WVU Medicine, resolves civil allegations that there were multiple violations of the federal Control Substance Act over a seven-year period.
WVU Health System said in a statement released to MetroNews, “The agreement resolves this matter without any admission of liability by WVU Health System of the covered conduct.”
The investigation done by the U.S. Drug Enforcement Administration (DEA) showed numerous record keeping violations between 2017 and 2024 including a failure to report the loss of significant quantities of controlled substances. The investigation uncovered other violations including errors in ordering and a failure to maintain accurate and current inventory records, failures to properly use DEA order forms, and maintaining policies and procedures not in compliance with federal regulations.
“The DEA Diversion Investigators who worked this matter should be commended for uncovering failures that put controlled substances at risk of diversion, and their work has undoubtedly made West Virginia a safer place,” First Assistant U.S. Attorney Christopher J. Prezioso said in the Monday news release. “When a healthcare system controls large quantities of addictive medications, strict compliance with the Controlled Substances Act is necessary to protect the public. This settlement, along with the corresponding Memorandum of Agreement, demands accountability and mandates meaningful reform across WVUHS.”
Special Agent in Charge Jim Scott, head of DEA’s Louisville Field Division, said WVU Health System must do a better job keeping track of the drugs.
“Hospital systems stockpile controlled medications with a high potential for abuse, so it’s imperative that they safeguard those drugs and maintain accurate records to prevent diversion,” said Scott said. “The multi-million dollar fine levied against the WVUHS in this case reflects the serious nature of their failure to meet their obligations in accordance with the Controlled Substances Act.”
The three-year Memorandum of Agreement between WVU Health System and the DEA imposes detailed systemwide compliance requirements, including “additional diversion oversight, policies for rapid reporting of thefts or losses, and installing hundreds of security cameras at controlled substance storage sites. The organization is also ordered to improve training, auditing , and other policy improvements to detect, investigate and prevent diversion,” the news release said.
A link to the full settlement is here.
The full statement from WVU Health System:
WVU Health System has reached a settlement agreement with the United States Attorney’s Office for the Northern District of West Virginia and the U.S. Drug Enforcement Administration resolving a regulatory matter primarily involving controlled substance record keeping, documentation, and related compliance requirements at several WVU Health System hospitals. The agreement resolves this matter without any admission of liability by WVU Health System of the covered conduct.
Throughout the government’s review, we cooperated fully with federal authorities and have worked diligently to strengthen our policies, procedures, oversight, and training to ensure continued compliance with the Controlled Substances Act and its implementing regulations.
Even before the DEA’s investigation commenced, WVU Health System had proactively invested millions of dollars in additional personnel, advanced diversion detection technology, and expanded security infrastructure, and continues to strengthen those safeguards across its hospitals.
Importantly, this matter concerned regulatory compliance, recordkeeping, and documentation requirements. It did not involve findings that WVU Health System intentionally engaged in unlawful distribution of controlled substances or that patient care was compromised. We are pleased to have resolved this matter and remain focused on providing the highest quality care to the patients and communities we serve.