Oregon hospital sued for $303 million after nurse accused of replacing fentanyl with tap water

An Oregon hospital, Asante Rogue Regional Medical Center, is embroiled in a $303 million lawsuit following an alarming case of fentanyl theft and medical malpractice. At the center of the scandal is 36-year-old former ICU nurse Dani Marie Schofield, who has been accused of stealing fentanyl—an extremely potent synthetic opioid—from patients and replacing it with tap water. The drug diversion, which allegedly took place over a year from July 2022 to July 2023, is said to have caused severe bacterial infections in 44 patients, leading to the deaths of 16 individuals. The remaining patients, who survived the ordeal, are part of a collective lawsuit against the hospital  .

How the Scandal Unfolded

The investigation into Schofield’s actions began in December 2022 when hospital staff noticed a disturbing rise in central line infections among ICU patients. Central lines are critical for delivering medication and fluids directly into a patient’s bloodstream, making proper sanitation and care crucial to avoid infections. The infections were later linked to Schofield, who had access to all of the patients who developed these complications. An internal investigation by Asante revealed that the fentanyl meant for patient use had been swapped with non-sterile tap water, leaving patients without proper pain relief and exposing them to waterborne bacteria.

Fentanyl is commonly used to manage severe pain, especially for patients undergoing surgery or those suffering from chronic conditions such as cancer. The drug’s high potency makes it indispensable in hospital settings, but it also poses a significant risk of abuse and theft. According to reports, Schofield diverted the drug for her personal use, leading to patients receiving contaminated IV drips, which caused dangerous bacterial infections. The affected patients were vulnerable individuals already dealing with complex medical conditions, making the consequences of the nurse’s actions particularly devastating  .

Legal and Financial Ramifications

Schofield now faces 44 second-degree felony counts related to the theft and tampering of medications. In June 2024, she pleaded not guilty to the charges but agreed to suspend her nursing license until the criminal proceedings are concluded. She has been released on $4 million bail and is awaiting trial. If found guilty, Schofield could face up to 10 years in prison .

The lawsuit against Asante Rogue Regional Medical Center claims the hospital was negligent in its duty to monitor staff and prevent drug theft. The plaintiffs, which include the estates of the deceased and surviving patients, accuse the hospital of failing to adequately safeguard its fentanyl supply and allowing unsanitary conditions to go unchecked. The lawsuit, originally seeking $11.5 million, has grown to a staggering $303 million, covering medical expenses, lost income, pain and suffering, and wrongful death claims. Plaintiffs include the family of Horace E. Wilson, a patient who developed a bacterial infection after surgery and later died from multi-organ failure  .

The Broader Impact of Drug Diversion in Healthcare

Drug diversion is a significant issue in healthcare, particularly with highly controlled substances like fentanyl. According to the U.S. Drug Enforcement Administration (DEA), healthcare professionals divert an estimated $70 billion worth of drugs each year. Hospitals are required to have stringent protocols in place to track the use and distribution of controlled substances, but cases like Schofield’s show that these systems can sometimes fail. When that happens, the consequences for patients can be severe, including unnecessary pain, infection, and in some cases, death.

The case has also sparked renewed scrutiny on the growing opioid epidemic in the U.S. Fentanyl, in particular, has been a key contributor to the crisis. While it is used legitimately in medical settings, fentanyl is also one of the most commonly abused opioids, contributing to a significant rise in overdose deaths. The potency of fentanyl—100 times stronger than morphine—makes even a small miscalculation or misuse potentially deadly.

Asante’s Response

Following the discovery of Schofield’s actions, Asante Rogue Regional Medical Center contacted law enforcement and cooperated fully with the ensuing investigation. Hospital officials have expressed remorse for the pain and suffering caused by the incident, pledging to review and strengthen their medication tracking and security protocols. The hospital has since reached out to patients and their families to provide support and transparency regarding the ongoing case  .

However, the hospital’s reported failure to monitor Schofield’s actions for over a year has raised questions about accountability and oversight. Critics argue that the hospital should have acted sooner, especially given the pattern of infections and the critical nature of ICU care. The lawsuit aims to hold the hospital accountable for these alleged lapses, ensuring that similar incidents do not occur in the future.

Looking Forward

As the legal proceedings move forward, this case serves as a stark reminder of the potential consequences of drug diversion in healthcare settings. For the families of the victims, the lawsuit is a step toward justice and closure after their loved ones suffered from preventable infections and deaths. For the healthcare industry, this case emphasizes the importance of stringent controls and monitoring systems to prevent drug theft and ensure patient safety.

With Schofield’s trial still pending, the lawsuit against Asante will likely be closely watched by healthcare professionals and legal experts alike, as it touches on both the opioid crisis and the ethical responsibilities of hospitals to safeguard their patients.

In the meantime, the hospital and healthcare systems nationwide will need to re-examine their drug monitoring protocols to prevent further tragedies like this one.