GovOp, Health, Aging & Community Affairs: IG Audit of District-Owned Nursing Homes
On September 23, 2011, the OIG issued a final report summarizing the results of its audit of the two District-owned Nursing Homes (OIG No. 10-1-02BY/HT), WCAS and JBJ. This audit was included in the OIG’s annual audit plan and is part of its continuous review of the District Medicaid program. The audit was initiated because each home had been operated by Vital Management Team Long Term Care Management, Inc (VMT) via long-term contracts to WCAS for over 20 years and JBJ for 15 years. The lack of rebidding raised the question of whether the District was paying the best possible price for management services.
During the course of the audit, it was found that VMT used approximately $2 million of District funds without authorization and violated performance conditions of its WCAS contract valued at approximately $750,000. These events occurred because the DC Office of Aging (DCOA) lacked internal controls to provide adequate contract oversight. In addition, VMT used its experience and assertive management style to execute questionable hiring practices and exercise improper account management. Without proper contract oversight, significant contract violations went unresolved or undetected for several years. As a result of the audit, OIG identified $2.7 million in contract costs that the District could have avoided.
The Joint Public Oversight Roundtable is intended to provide an opportunity to review the audit results in detail, provide a forum to hear from VMT management and employees, and examine agency efforts to implement the recommendations of the OIG.