A 25-bed critical access hospital in Indiana was called before the Board of Pharmacy on an order to show cause on July 14, 2025, after the Drug Enforcement Administration issued the hospital a letter of admonition connected to a significant diversion of controlled substances. The hospital's in-house counsel and two other witnesses appeared; the specific drugs involved were not identified in the minutes.
Hospital counsel explained how protocols were changed and implemented in response to the diversion, and stated that the DEA was satisfied with the corrective actions taken. Board members referenced violations cited in the DEA letter and asked the hospital to explain why they occurred and why the diversion was not immediately reported to the board. Counsel noted the pharmacy was not open around the clock, that the hospital's wholesaler had not raised concerns about orders or thresholds, that the wholesaler would not release records without a subpoena, and that there was no evidence anyone sold or intended to sell diverted drugs.
The hearing was limited to deciding whether the hospital's license should be suspended or revoked immediately. After hearing the evidence, the board voted 7-0 to set aside the order to show cause and, by separate unanimous votes, directed that administrative complaints be filed against the hospital and against its wholesaler. Those complaints begin a formal process; no disciplinary findings had been entered as of the meeting.