Berrien County rehab center agrees to pay $1M settlement to Department of Justice

BERRIEN COUNTY, Mich. -- It was announced on Tuesday that Sacred Heart Rehabilitation Center reached a settlement with the United States Department of Justice stemming from the DOJ alleging "violations in Sacred Heart’s record keeping processes and for administering controlled substances in violation of the federal Controlled Substances Act."

“Addiction is a terrible disease, and our team works hard to provide the care and support needed to help patients heal and find recovery,” said Sacred Heart CEO Paula Nelson. “Our system still encounters too many barriers for individuals accessing and receiving treatment. We are glad to have this issue behind us so that we can focus 100% of our energy on supporting patients in need.”

It was noted that the DOJ did not allege any activity involving illegitimate traffic or diversion in controlled substances.

"Rather, the DOJ alleged generally that Sacred Heart was administering controlled substances to patients before they provided a full history and physical performed by a licensed prescriber," the DOJ said. "After months of negotiations, Sacred Heart has now signed a consent decree agreeing to a $1 million fine while admitting no liability."

An additional part of the settlement will require Sacred Heart to have a compliance monitor in place for one year to assist each Sacred Heart facility with compliance related to the federal Controlled Substances Act.

“Sacred Heart facilities have a comprehensive internal Corporate Compliance Program and are audited 40-50 times per year by various organizations to ensure compliance with patient safety standards and controlled substance handling procedures,” said Nelson. “We are monitored by federal and state regulatory agencies, regional funding entities and a national accreditation agency every three years and work very hard to stay in compliance with all regulations.”

Sacred Heart is a nonprofit organization operating since 1967. They currently operate 10 facilities across the state of Michigan, including locations in Southeast Michigan, Port Huron, Flint, Saginaw, Bay City and Berrien Center. It also manages medication-assisted treatment services inside four county jails and has five recovery housing units throughout the state.

In its last fiscal year, Sacred Heart served more than 6,200 individuals, including 110 pregnant women, and also provided more than 500 medication-assisted treatments inside county jails.