AP NEWS

U of M Health System settles drug violations for $4.3M

August 30, 2018

ANN ARBOR, Mich. (AP) — U.S. Attorney Matthew Schneider says the University of Michigan Health System has agreed to pay $4.3 million in the nation’s largest settlement of its kind involving allegations of the diversion of opioids.

Schneider says the agreement settles an investigation by the Drug Enforcement Administration that began after a nurse suffered a fatal overdose and an anesthesiology resident also overdosed on stolen opioids, including fentanyl, in December 2013.

He says the DEA found several violations of the Controlled Substances Act. They included not securing DEA registrations for 15 off-site ambulatory care locations throughout Ann Arbor and southeast Michigan that received narcotics from the main hospital’s pharmacy and dispensed them to patients. They also included “significant” record-keeping violations that hurt its ability to guard against the theft and diversion of controlled substances.

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