Abstract: A system for monitoring and tracking the diversion of drugs and medical equipment. The system comprises a database that is accessible by any medical institutions connected thereto and system for reporting drug or medical equipment diversion events and then forwarding those reports to the appropriate individuals to investigate. If the investigation confirms that the diversion event occurred, then the system uploads the report to the database so that all medical institutions connected thereto can access it, alerts the relevant authorities, and provides a recommendation to the user as to the next course of action that the user should take. The recommendation may be based upon a number of factors, including the type of item that was diverted and the diversion history of the diverter. The system thereby provides connected institutions with alerts to prevent further diversions by the diverter, but also seeks to encourage treatment for the diverter.