Dignity Health, described as California's largest hospital provider, agreed to pay the United States $1.55 million to settle claims that its Sacramento-area hospitals and clinics failed to properly record hundreds of controlled-substance transactions and had insufficient compliance procedures and controls over the distribution of controlled substances. The system agreed to pay $1,250,000 immediately, with the remaining $300,000 deferred pending two years of compliance with a detailed action plan.
The DEA opened its investigation after the outpatient pharmacy at a Stockton medical center reported losses of more than 20,000 hydrocodone tablets in late 2010 and 2011. A 2011 DEA audit of that pharmacy found significant shortages across most strengths of hydrocodone and other controlled substances evaluated. The broader investigation found that several of the system's locations were not keeping the accurate records required under the Controlled Substances Act to guard against diversion.
Under the action plan, the system committed to annual external audits of Controlled Substances Act compliance with results reported to the DEA, keyless entry systems to monitor and restrict access to areas holding controlled substances, more frequent physical counts and inventories to catch discrepancies quickly, monthly record-keeping certifications and annual compliance training for employees who handle controlled substances. The press release notes that system leadership worked cooperatively with the DEA and the U.S. Attorney's Office to develop the plan.