Former Corewell Health warehouse employee, Stephen Jacobsen of Allendale, Michigan, was sentenced in Kent County Circuit Court to three years of probation and ordered to pay $2.4 million in restitution for stealing medical bone grafts and other supplies from Corewell Health's Walker warehouse.
Jacobsen, a longtime warehouse worker and supplier performance analyst, had previously pled guilty to embezzlement of more than $50,000 but less than $100,000, a reduced charge from the initial count of embezzlement over $100,000.
Surveillance cameras installed by Corewell security captured him removing small boxes of bone grafts from shelves, placing them into larger boxes, and loading them into a pickup truck.
Police reports state that he admitted stealing and selling the bone grafts and supplies over several months in the fall of 2024, and further acknowledged that the thefts had been occurring for six to seven years.
Authorities estimated the value of the stolen items at roughly $690,000, but the restitution amount was set higher to reflect the broader financial impact on the health system and supply chain.
Investigative reporting indicated that at least some of the stolen bone grafts were sold to an out-of-state medical supply company, and information about the thefts was shared with the FBI for potential interstate investigation.
Medical bone grafts, which Jacobsen stole and resold, are processed bone fragments used in orthopedic and spinal surgeries.
Source: https://www.woodtv.com/news/kent-county/former-corewell-worker-ordered-to-pay-2-4m-in-restitution-for-bone-graft-theft/
Commentary
In the above matter, the healthcare employee stole bone grafts. Healthcare employers carefully track medications because they know every missing vial represents risk, yet high-value biologicals such as bone grafts, skin grafts, and other implants can sit in storerooms with only loose logs or outdated spreadsheets to document their movement.
These products are small, expensive, and easily diverted, making them as attractive to internal thieves as narcotics.
Effective loss prevention starts with treating biologicals as controlled items: maintaining perpetual inventory, reconciling receipts, issues, and returns daily, and using technology such as barcoding or RFID to record every transfer.
Access to storage areas should be limited to a short, documented list of employees, with role-based system permissions and surveillance for receiving, picking, and after-hours activity.
Physical counts must be performed regularly by staff who do not control ordering or daily handling. Discrepancies should trigger prompt investigation rather than quiet adjustments.
Facilities should tie each biological to a specific patient, procedure, and surgeon in both clinical and supply chain systems. This will ensure that unused items are documented and returned, and no product can be removed without a clinical record to match.
Vendor trunk stock, consignment inventory, and point-of-use cabinets require the same rigor. Detail clear ownership, signed agreements, and auditable usage records.
When healthcare leaders align their biologicals inventory program with their medication management standards, they not only protect against theft but also ensure product traceability for recalls, infection control, and patient safety.
