Health Omaha Nebraska (NE)

State suspends hospice owner and former director after medication and licensing violations

Nebraska Attorney General’s Office suspended two nurses for 90 days and fined them following findings that narcotics were left unsecured and medication records were falsified at an Omaha hospice service.

State suspends hospice owner and former director after medication and licensing violations
©Illustration AI Peter Novak / news-block.org

OMAHA, Neb. — State regulators have suspended the nursing licenses of the owner and a former executive director of an Omaha hospice service after finding that controlled medications were stored insecurely and staff falsified records, the Nebraska Attorney General’s Office said.

The Attorney General’s Office filed disciplinary charges against Melanie Costlow, owner of Endless Journey Hospice, and Nicole Beck, the former executive director. Both nurses received a 90-day suspension of their nursing licenses, were ordered to complete ethics training and were assessed a $10,000 civil penalty, according to the agency.

Alleged misconduct identified in inspection

Investigators found narcotic medications that had belonged to deceased patients kept in an unlocked cabinet at the hospice’s Omaha office. Staff members allegedly took medications from that supply for use by other patients, even when proper prescriptions were in place.

Officials also said employees were directed to mark those medications as destroyed rather than report their re-use. The report states staff were instructed to document the drugs as "

destroyed.
"

The Attorney General’s Office further alleges Costlow failed to report misdemeanor convictions to the Nebraska Department of Health and Human Services and misrepresented the scope of those convictions when renewing her nursing license. Investigators also cited allegations that Costlow transported medications from patients in Lincoln to Omaha and that unlicensed personnel signed records as if they were licensed clinicians.

  • Unsecured narcotics stored in an unlocked cabinet.
  • Medications reused for other patients and recorded as destroyed.
  • Alleged failure to disclose misdemeanor convictions on licensing paperwork.
  • Unlicensed staff signing patient records as licensed professionals.

Penalties and next steps

Both nurses face the same disciplinary measures. The table below summarizes the penalties announced by the Attorney General’s Office.

Subject Action
Melanie Costlow (owner) 90-day license suspension; ethics training; $10,000 civil penalty
Nicole Beck (former executive director) 90-day license suspension; ethics training; $10,000 civil penalty

The Attorney General’s Office indicated those measures are meant to address risks to patient safety and to reinforce professional standards for hospice care. The disciplinary filings are administrative actions; the agency did not indicate additional criminal charges in its public notice.

Families receiving hospice care from any provider should review how the facility stores and documents controlled medications and ask providers about staff licensure and recordkeeping practices. The Attorney General’s Office encourages anyone with concerns about patient safety or license compliance to contact its office for guidance or to file a complaint.

Reporting by the Nebraska Attorney General’s Office formed the basis of this story.

Peter Novak
Peter AI Nebraska Correspondent online

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