United States Reaches $4.17M Civil Settlement and 3-Year Compliance Agreement with WVU Health System Over Controlled Substance Violations
The United States Attorney's Offices for the Northern and Southern Districts of West Virginia announced today that West Virginia United Health System, Inc., doing business as West Virginia University Health System, has agreed to pay $4,177,139 and enter a Memorandum of Agreement to resolve civil allegations that it violated multiple provisions of the Controlled Substances Act across various registered facilities over a seven-year span.
Pursuant to a Drug Enforcement Agency investigation, The United States identified that WVUHS committed numerous recordkeeping and reporting violations between 2017 and 2024. WVUHS facilities failed to notify the DEA regarding thefts or significant losses of controlled substances. In addition to these failures to report, other violations included errors in orders regarding controlled substances; failures to maintain accurate and current inventory records; failures to ensure proper authority for use of DEA order forms; maintaining policies and procedures not fully consistent with the requirements of the Controlled Substance Act; and other administrative violations.
"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," said First Assistant U.S. Attorney Christopher J. Prezioso. "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."
In addition to the civil monetary settlement, WVUHS has signed a comprehensive, three‑year Memorandum of Agreement with the DEA. The Memorandum of Agreement imposes detailed systemwide compliance requirements, including additional diversion oversight; rapid reporting of thefts or losses; installing hundreds of security cameras at controlled substance storage sites; enhancing training and auditing procedures; and other policy improvements to detect, investigate, and prevent diversion.
"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 Special Agent in Charge Jim Scott, head of DEA's Louisville Field Division. "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."
This case was litigated on behalf of the United States by Assistant U.S. Attorneys Christopher Prezioso, Jordan V. Palmer, and Stephanie K. Savino, from the Northern District of West Virginia, and Greg Neil of the Southern District of West Virginia.