Morgantown, W.Va.-based West Virginia University Health System has agreed to pay $4.2 million and enter a three-year compliance agreement with the Drug Enforcement Administration to resolve allegations it violated multiple provisions of the Controlled Substances Act across dozens of registered facilities.
The settlement resolves civil allegations stemming from a DEA investigation into recordkeeping, reporting and security violations that occurred between May 2017 and July 2024. Under the agreement, WVU Health System will pay $4,177,139 but does not admit liability for the alleged conduct.
According to the Justice Department, the health system failed to timely notify the DEA of certain thefts or significant losses of controlled substances and committed other violations, including documentation errors on controlled substance order forms, inaccurate inventory records, improper authorization for DEA order forms and policies that were not fully consistent with federal controlled substance requirements.
The settlement agreement also cites examples of alleged diversion, including incidents in which employees admitted to stealing oxycodone, hydrocodone and other controlled substances over extended periods. In several instances, the government alleged WVU Health System failed to notify the DEA after discovering the thefts.
As part of the resolution, the health system signed a separate three-year memorandum of agreement with the DEA requiring systemwide compliance measures, including:
- Establishing diversion response teams and oversight committees across registered facilities.
- Rapid reporting of suspected thefts and significant losses of controlled substances.
- Installing at least 750 security cameras at pharmacy and controlled substance storage locations, excluding operating rooms.
- Expanding employee training, auditing and diversion monitoring.
- Conducting annual compliance audits and biennial physical inventories of controlled substances.
The memorandum notes that WVU Health System has already increased spending on diversion prevention, including adding about $500,000 annually in personnel dedicated to controlled substance surveillance since 2021, investing $140,000 annually in diversion detection software since 2024 and planning to spend approximately $2.5 million on additional security cameras through 2029.
In a statement shared with Becker’s, WVU Health System said the agreement resolves “a regulatory matter primarily involving controlled substance record keeping, documentation, and related compliance requirements” at several of its hospitals and does not include any admission of liability.
“Importantly, this matter concerned regulatory compliance, recordkeeping, and documentation requirements,” a spokesperson for the system said in a statement. “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.”
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