Cheshire Medical Center to pay $2 million fine in missing fentanyl case

U.S. attorney cites Keene hospital’s ‘failure to fulfill obligations’

Cheshire Medical Center will pay $2 million in connection with the months-long incident where gallons of fentanyl solution were lost or unaccounted for at the Keene hospital.

“Cheshire Medical Center’s failure to fulfill its obligations under the Controlled Substance Act enabled the theft of prescription narcotics — including powerful opioids such as fentanyl, which led to a shockingly high percentage of drugs missing from CMS’s inventory. The failures uncovered warranted a multi-million-dollar penalty and a stringent corrective action plan,” U.S. Attorney Jane Young said in a June 21 news release from the Department of Justice announcing the settlement.

“This is one of the largest settlements of drug diversion claims against a hospital in the country.”

According to the release, the Dartmouth Health affiliate failed to keep accurate records of controlled substances, including opioids.

The Drug Enforcement Administration began an investigation into Cheshire Medical after an ICU nurse reported in February 2022 that she’d stolen hundreds of bags of fentanyl solution from the hospital, according to documents from the N.H. Office of Professional Licensure and Certification.

But following the nurse’s death that March, and after remedial measures were put in place, the documents state that drugs still went missing.

In connection with the months-long substance diversion, the OPLC disciplined Cheshire Medical’s chief nursing officer, pharmacist-in-charge/director of pharmacy and a pharmacist — none of whom are still employed by the hospital.

Audits from the DEA found the hospital had several “recordkeeping deficiencies, such as failing to maintain accurate purchase and dispensation records.” Cheshire Medical also failed to regularly review reports to look for possible diversion, and did not enforce various controlled substance security policies, the audit shows.

“Cheshire Medical Center’s failure to fulfill its obligations under the Controlled Substance Act enabled the theft of prescription narcotics — including powerful opioids such as fentanyl, which led to a shockingly high percentage of drugs missing from [Cheshire Medical’s] inventory,” said U.S. Attorney Jane Young in a news release from the DOJ. “The failures uncovered warranted a multi-million-dollar penalty and a stringent corrective action plan.

“This is one of the largest settlements of drug diversion claims against a hospital in the country.”

The fine will be paid through funds from Cheshire Medical Center’s operating budget that were put aside in anticipation of the settlement, according to hospital spokesman Matthew Barone.

This settlement resolves the allegations that the hospital violated the record-keeping requirements of the Controlled Substance Act and its regulations, according to the release. In addition to the $2 million fine, the release says Cheshire Medical has agreed to additional security and record-keeping measures.

The federal investigation found that 21 gallons of fentanyl solution were lost or unaccounted for at the Keene hospital over a two-year span, according to an official with the DEA.

That amount is more than double what The Sentinel previously reported based on documents from the OPLC.

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