Michigan drug rehabilitation network ordered to pay $1 million fine after DEA inspection

GRAND RAPIDS, MI – A drug rehabilitation organization has been ordered to pay $1 million following an investigation by the Drug Enforcement Administration to resolve allegations of violations of the Controlled Substances Act.

According to the U.S. Attorney for the Western District, a consent decree was issued against Sacred Heart Rehabilitation Center, Inc., a behavioral health and addiction treatment services network, as well as its President and CEO Paula Nelson and Medical Director Janis Romanik, DO, Michigan .

The decree requires supervision of the defendants and a civil penalty of $1 million and resolves allegations that the defendants violated certain filing and recordkeeping requirements of the Controlled Substances Act. U.S. District Court Chief Judge Hala Y. Jarbou filed the court order this week.

“Now more than ever, addiction treatment centers like Sacred Heart in Michigan are playing a critical role in treating and healing communities plagued by the opioid epidemic and other forms of addiction,” Totten said. “But as this resolution demonstrates, it is critical that these organizations and their officials handle controlled substances in a way that preserves the integrity of these services and ensures patient safety.”

“The purpose 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,” he said.

The United States alleged that a DEA inspection uncovered multiple violations of the Controlled Substances Act at a Sacred Heart treatment facility called Serenity Hills Recovery & Wellness Center at Berrien Center. An online search shows the facility's address as 6418 Deans Hill Road.

The United States alleged that facility staff routinely dispensed controlled substances to treat patients experiencing addiction withdrawal symptoms before a qualified physician examined the patients. The complaint says some took a regimen of controlled substances for days without being examined by a qualified doctor.

The United States also alleged that Serenity Hills failed to keep accurate records of controlled substances dispensed to patients and had other record-keeping problems. The case alleged that similar violations had occurred at other Sacred Heart facilities over the past 12 years.

The organization's website shows its corporate headquarters are in Richmond, with additional locations in Bay City, Flint, Madison Heights, Port Huron, Saginaw, St. Clair Shores and St. Ignace.

Sacred Heart has agreed to review and revise its controlled substance policies and procedures and to retain an independent auditor to inspect Sacred Heart's facilities and share the results of the inspections with the DEA. Following a supervision period, a probationary period begins for the defendants.

Sacred Heart Rehabilitation Center is registered in Michigan as a domestic nonprofit organization and was founded in 1968.

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“When rehabilitation and treatment centers fail to meet their obligations, our office will vigorously prosecute the violations,” said Orville Green, special agent in charge of the DEA’s Detroit Field Division. “Careless behavior and failure to comply with the provisions of the CSA results in substances being diverted and sold without responsibility.”

The claims clarified through the settlement should be viewed as allegations, said Totten.

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

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