What Happened
State of Franklin Healthcare Associates, PLLC, a physician-led medical group with more than 30 clinics in Tennessee and Virginia, agreed on May 2, 2024, to pay $200,000 in civil monetary penalties to resolve allegations that it violated the Controlled Substances Act. The United States contended that from October 2020 to January 2023 the group did not make or keep records of Schedule III and IV controlled substances transferred between physicians, to an unregistered supply warehouse and to unregistered clinics, or of the loss or theft of a Schedule III substance. The group cooperated with the DEA, and there was no determination of liability.
“agreed to pay civil monetary penalties to resolve allegations that the company violated the Controlled Substances Act (CSA)”
Related Guidance
- 15 Red Flags of Drug Diversion — Behavioral and transactional indicators of diversion.
- Investigation Playbook — How to investigate suspected diversion inside an organization.