Physician to pay $100K to resolve controlled substance recordkeeping issues
A physician in Pennsylvania accused of violating the Controlled Substances Act has agreed to pay $100,000 to resolve the allegations, the U.S. Department of Justice (DOJ) said.
According to a July announcement from the agency, Xiang Yuan, MD, a plastic surgeon, failed to maintain complete and accurate records, improperly moving drugs from his registered address and using drugs from his office’s supply for patient care, while writing prescriptions to make it appear that the drugs were being provided through a normal pharmacy.
As part of the settlement, Yuan does not admit to any intentional wrongdoing. He will not be charged with a crime.
However, in addition to paying the $100,000 settlement amount, the doctor has agreed to submit to a three-year monitoring agreement with the Drug Enforcement Administration (DEA), necessitating that he take on “additional responsibilities regarding the handling of controlled substances.”
Compliance with the DEA rules will be “significantly more stringent” than state and federal law, the DOJ added.
“The goal of DEA’s closed system of distribution is to ensure accountability for controlled substances,” said Thomas Hodnett, Special Agent in Charge of the DEA’s Philadelphia Field Division. “In prescribing controlled substances ‘for stock,’ Dr. Yuan made himself a middleman in this same closed system and created an environment where controlled substances are not properly inventoried or secured.”
The DEA was the primary investigating agency on the case, assisted by the U.S. Attorney's Office. The DOJ did not say what would happen if Yuan fails to comply with the new enhanced reporting requirements.
Yuan’s license to practice medicine has not been revoked or limited, and he maintains his practice in Pottstown, Pennsylvania.
Healthcare in the drug war
Initially passed in 1970, the Controlled Substances Act is a centerpiece of the federal war on drugs. It aims to deter the illegal manufacture, distribution, possession and use of any controlled or illegal drug, such as prescription painkillers.
Any healthcare provider registered with the DEA to possess and dispense these potentially dangerous, addictive drugs is required to complete and maintain accurate records of how and when they are used, the DOJ added.
Failure to do so can result in fines or imprisonment, depending on the severity of alleged crimes.
It isn’t clear if authorities have any evidence of criminal liability, or enough evidence to prosecute Yuan. The settlement puts the allegations to rest in this particular case.
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