UT Southwestern Hit with $4.5M Fine for Drug Diversion Scandal

The University of Texas Southwestern Medical Center (UTSW) is facing a staggering $4.5 million fine to settle allegations that its negligence under the Controlled Substances Act (CSA) led to drug diversion, including the tragic deaths of two nurses from fentanyl overdoses.

This landmark settlement comes after a three-year joint investigation by the DEA and U.S. Attorney’s Office into UTSW’s handling of controlled substances, which began following the December 2018 overdose deaths of two UTSW nurses at Clements University Hospital. The settlement also encompasses an extensive corrective action plan designed to prevent future incidents.

“For years, UTSW showed a shocking disregard for its CSA obligations, enabling staff to steal and abuse prescription narcotics,” said U.S. Attorney Chad E. Meacham. “This penalty and plan aim to mitigate the threat of opioid diversion beyond what’s legally required.”

DEA Dallas Special Agent in Charge Eduardo A. Chávez emphasized the gravity of the situation: “Opioids do not discriminate, and health care systems must comply with the CSA for public trust and safety. DEA Dallas will work tirelessly to ensure compliance and combat the opioid epidemic.”

The investigation revealed violations of the CSA over a five-year period, including UTSW’s failure to meet recordkeeping and reporting obligations. This lack of oversight allowed employees to divert controlled substances from Clements University Hospital and Zale Lipshy Pavilion.

Two tragic incidents stand out: On December 15, 2016, a nurse overdosed on fentanyl; and on April 16, 2018, another nurse succumbed to an overdose of opioids. Despite reporting some thefts to the DEA, UTSW failed to document dispensing and wasting of controlled substances adequately.

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