Norfolk Hospital Agrees to Pay Civil Penalty for Alleged Violations of the Controlled Substances Act

NORFOLK, Va. – Children’s Hospital of the King’s Daughters, Inc. (CHKD), located in Norfolk, agreed to pay $68,400 to settle civil penalty claims for alleged record-keeping violations associated with controlled substances.

The government alleged that CHKD failed to comply with various recordkeeping requirements under the Controlled Substances Act (CSA) that are mandated for DEA registrants who handle controlled substances. The government alleged that between March 29, 2021, and December 22, 2021, CHKD had packages of compounded prescription drugs delivered to its receiving warehouse, a location not registered with the Drug Enforcement Administration (DEA). This allegedly includes a delivery of 200 one-milliliter fentanyl syringes (10mcg/ml) that CHKD cannot show was delivered to its registered pharmacy location or otherwise account for.    

The recordkeeping requirements under the CSA are designed to protect the health and safety of the public from dangers posed by highly addictive or dangerous controlled substances, such as opioids, being diverted into the illicit market, while also ensuring that patients have access to pharmaceutical controlled substances for legitimate medical purposes. In a separate agreement with the DEA Diversion Group, CHKD agreed to take measures to prevent such conduct from occurring in the future.

The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia and the DEA, Washington Division, Norfolk District Office.

The matter was handled by Assistant U.S. Attorney Clare Wuerker. 

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.

The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.