State of Franklin Healthcare agrees to pay $200K for alleged controlled substance records violations
JOHNSON CITY, Tenn. (WJHL) — State of Franklin Healthcare Associates (SOFHA) will pay a $200,000 civil penalty for allegedly violating recordkeeping requirements for controlled substances, according to the U.S. Department of Justice (DOJ).
In a release, the DOJ said SOFHA violated the Controlled Substance Act “by failing to make, keep, and furnish essential documents and records pertaining to the acquisition, transfer, and disposition of Schedule III and Schedule IV controlled substances.”
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The alleged violations took place over a period lasting from October 2020 and January 2023 and were uncovered through a Drug Enforcement Agency (DEA) investigation.
According to the DOJ, SOFHA did not make and could not produce records regarding the transfer of Schedule III and Schedule IV substances:
From SOFHA physicians to an unregistered SOFHA supply warehouse
From SOFHA physicians to other SOFHA physicians
From the SOFHA supply warehouse to unregistered SOFHA clinics for dispensing by registered SOFHA physicians
The DOJ said SOFHA also could not produce records pertaining to the loss or theft of a Schedule III controlled substance.
The Controlled Substances Act requires DEA registrants to make and retain records detailing the handling of controlled substances.
The DOJ alleged that SOFHA failed to implement procedures for making and preserving crucial records and could not provide required information to the DEA when requested.
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“When medical providers fail to follow the record-keeping requirements of the (Controlled Substances Act), it significantly contributes to the risk of diversion of controlled substances from legitimate purposes to improper usage, causing harm to our citizens and communities,” U.S. Attorney Francis M. Hamilton III said in a release. “This settlement agreement demonstrates that the United States Attorney’s Office, the DEA, federal, state, and local law enforcement partners, are using all tools available to enforce the requirements of the CSA and degrade the diversion of controlled substances.”
The release did note that SOFHA cooperated with the DEA and the settled claims “are allegations only, and there has been no determination of liability.”
SOFHA issued a statement to News Channel 11:
“State of Franklin Healthcare Associates (SOFHA) takes compliance with the Controlled Substances Act (CSA) seriously. SOFHA was pleased to cooperate with the DEA and to have the DEA’s assistance in connection with SOFHA’s recordkeeping for controlled substances to reduce the risk of harm to our patients, citizens and communities. As part of our commitment, SOFHA has addressed the concerns raised by the DEA and reached an agreement which resolved the allegations. SOFHA has been and remains dedicated to implementing robust procedures to ensure strict adherence to all regulatory requirements, prioritizing the safety and well-being of the people and communities we serve.”
Rob Slattery, CEO of State of Franklin Healthcare Associates
SOFHA, which is based in Johnson City, has multiple clinics across the Tri-Cities and in Southwest Virginia.
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