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September 29, 2011

BOSTON - The United States has reached a settlement with Baldpate Hospital in Georgetown, Mass. in connection with civil drug diversion allegations investigated by the DEA and the United States Attorney’s Office. The announcement was made today by U.S. Attorney Carmen M. Ortiz and Steven W. Derr, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division.
Based on facts developed in the course of the investigation, the government contended that Baldpate Hospital, a private psychiatric hospital, violated the Controlled Substances Act by operating a clinic for heroin addicts who were given methadone, a Schedule II painkiller subject to strict regulatory handling and record-keeping requirements, without being registered with the DEA as a Narcotic Treatment Program, and by failing to maintain proper records and inventories with respect to methadone in the hospital’s possession. Baldpate Hospital has agreed to pay $29,500 in settlement of these claims.

"Controlled substances are subject to strict requirements because of their potential for harm and abuse," stated U.S. Attorney Ortiz. "This office takes the mishandling of prescription drugs extremely seriously, and will continue to seek all appropriate remedies to ensure that providers abide by their obligations in handling these powerful drugs."

The investigation leading to the settlement was conducted by Diversion Investigators with the DEA's New England Field Division, as well as investigators from the Massachusetts Department of Public Health. The case was handled by Assistant U.S. Attorney Christine J. Wichers of Ortiz’s Civil Division.




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