Sacred Heart Rehabilitation Center Agrees To Consent Decree And $1,000,000 Penalty For Alleged Controlled Substances Act Violations

<_w3a_listitem listvalue="Choose an item."><_w3a_listitem listvalue="GRAND RAPIDS" datavalue="GRAND RAPIDS"><_w3a_listitem listvalue="KALAMAZOO" datavalue="KALAMAZOO"><_w3a_listitem listvalue="MARQUETTE" datavalue="MARQUETTE"><_w3a_listitem listvalue="LANSING" datavalue="LANSING">GRAND RAPIDS - U.S. Attorney for the Western District of Michigan Mark Totten today announced that Chief U.S. District Court Judge Hala Y. Jarbou has entered a consent decree against Sacred Heart Rehabilitation Center, Inc. (Sacred Heart), a behavioral health and addiction treatment services network, as well as its president and chief executive officer, Paula Nelson, and medical director, Janis Romanik, D.O. The court order imposes certain monitoring and compliance obligations on the defendants as well as a $1,000,000 civil penalty and resolves the United States' allegations that the defendants violated certain dispensing and recordkeeping requirements of the Controlled Substances Act (CSA).

"Now more than ever, Michigan addiction treatment centers like Sacred Heart play a critical role in treating and healing communities plagued by the opioid epidemic and other forms of addiction," said U.S. Attorney Mark Totten. "But as this resolution demonstrates, it is crucial that these organizations and their officers handle controlled substances in a way that maintains the integrity of these services and ensures patient safety. The goal of this consent decree is to provide the necessary support and oversight to ensure that Sacred Heart can continue to provide necessary addiction treatment services, but in a safe and compliant manner."

In its complaint, the United States alleged that a Drug Enforcement Administration (DEA) inspection discovered multiple violations of the CSA at a Sacred Heart treatment facility in Berrien Center named Serenity Hills Recovery & Wellness Center (Serenity Hills). The United States alleged that Serenity Hills staff routinely dispensed controlled substances to treat patients presenting with addiction withdrawal symptoms before a qualified healthcare practitioner evaluated or examined those patients. In many instances, patients spent days on a regimen of controlled substances without being seen by a qualified healthcare practitioner.

The United States also alleged that Serenity Hills failed to maintain accurate records of the controlled substances dispensed to patients, and that the facility neglected to take a biennial inventory of controlled substances and did not file a timely report of the theft or loss of missing controlled substances. The United States alleged that these recordkeeping violations followed a history of similar violations at other Sacred Heart facilities over the last twelve years.

Under the terms of the consent decree, Sacred Heart has agreed to review and revise its controlled substance policies and procedures and to hire an independent monitor to inspect Sacred Heart's facilities for compliance with the CSA and share the findings of those inspections with Sacred Heart and the DEA. Following this monitoring period, the defendants will enter a probationary period during which future violations may result in payment of liquidated damages.

"When rehabilitation and treatment centers do not live up to their obligations, our office will vigorously pursue the violations," said Orville Green, Special Agent in Charge of the Detroit Field Division of DEA. "Careless behavior and failure to adhere to the provisions of the CSA, allows for substances to be diverted and sold without accountability."

The resolution obtained in this case was the result of a coordinated effort between the U.S. Attorney's Office for the Western District of Michigan and DEA's Diversion Group in the Grand Rapids District Office. Assistant United States Attorney Andrew J. Hull prosecuted this case with assistance from DEA Field Counsel Stacy M. Race.

The complaint and consent decree in this case can be found on the Court's online docket under United States v. Sacred Heart Rehabilitation Center, Inc., et al., No. 1:24-cv-995 (W.D. Mich.).

The claims resolved by the settlement are allegations only and there has been no determination of liability.

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