A Muncie hospital's pharmacy license came before the Indiana Board of Pharmacy after investigators found that its longtime pharmacy manager had, according to prosecutors, taken tens of thousands of doses of opioids over nearly four years without detection. Reported losses included more than 32,000 milliliters of hydromorphone, more than 3,300 milliliters of methadone solution, more than 4,000 methadone tablets and smaller amounts of morphine. The hospital estimated its loss at more than $121,000.
The Office of the Attorney General filed an administrative complaint alleging 44 violations against the hospital. In April the board unanimously rejected a first proposed settlement, with members calling the case egregious. After nearly three months of further negotiation, a revised agreement was presented that kept the statutory maximum $44,000 civil fine but added more specific probation terms, including training requirements for pharmacy leadership and documentation tied to federal diversion guidance.
The board accepted the revised settlement by a 3-2 vote, with one member recused. Under its terms the hospital's pharmacy license and controlled substance registration remain on indefinite probation for at least three years, and the hospital must retain an independent auditor to review controlled-substance policies, recordkeeping and diversion safeguards quarterly during the first two years, submitting findings and implementation plans to the board. Several members said they voted yes only because state law capped the fine and the alternative was no settlement at all. The settlement is a negotiated resolution, not a finding of liability.
The former pharmacy manager was terminated in 2024 and faces felony counts including possession of a narcotic drug, theft, obtaining a controlled substance by fraud, unlawful possession of a syringe and forgery. Those charges are pending, with a status hearing set for Aug. 5, and prosecutors have said they will oppose further continuances. The board president indicated the pharmacist would likely be asked to appear before the board before any licensing action.