State Comptroller Tom DiNapoli said in a recently released audit that the state spent nearly half a billion tax payer dollars on a medical stockpile but used little of it and has no clear plan for the leftover equipment and supplies. The audit also showed that the state has no inventory controls or plan for preventative maintenance on the equipment so it would be able to be used in the future.
DiNapoli’s auditors determined the state paid $452.8 million to purchase 247,343 items of DME and received 51 items donated by others or from the federal government, for a total of 247,394 items procured during the onset of COVID-19. Of the total DME available for use, only 324 items were distributed during the public health emergency, and only three items from the 247,343 DME purchased during COVID-19.
This leaves a significant amount of DME purchased during the pandemic (247,340 items) still unused in boxes at warehouses, for which the State continues to incur contracted warehouse management costs.
DME now in storage includes CPAP/BiPAP machines, ventilators, oxygen tanks, pulse oximeters (which measure the saturation of oxygen carried in red blood cells), oxygen concentrators, and infusion pumps. All with no maintenance schedule in place and no plan for distribution and use where it might be needed across the state.
“During the pandemic, New York state quickly purchased medical equipment to address the public health crisis,” DiNapoli said. “Now, hundreds of thousands of unused devices sit idle. I urge the Department of Health (DOH) to develop and execute a strategic plan for the maintenance and use of these and future medical equipment purchases, so New York is well prepared for the next public health emergency.”
Auditors also found a lack of inventory controls during the pandemic contributed to DOH being unable to account for all the equipment purchased, with credit card transactions an issue. Looking at a sample of nine credit card purchases, auditors found DOH could not provide proof of delivery for four purchases, which included 140 pieces of DME worth $312,644.
When the public health emergency ended, a Medical Stockpile Steering Committee was created to make recommendations on what quantity and type of DME should be retained in the emergency stockpile. DOH could not provide auditors with documentation supporting how the steering committee reached their decisions, leaving auditors without a way to assess the committee’s conclusions.
DiNapoli made very basic and common sense recommendations – one’s that any taxpayer would have in place for their own property.
- Maintain basic internal controls during emergency scenarios to ensure stewardship over state assets;
- Document and preserve the process and key factors used when making significant decisions, and keep documentation of key events;
- Develop and implement a strategic plan for DME preventive maintenance so it is ready to use during public health emergencies;
- Develop and implement a statewide public health strategic plan to utilize surplus DME.