Submitting OIG:
Report Description:
The Veterans Health Administration (VHA) spent about $6.6 billion on prescription drugs in fiscal year (FY) 2019. Most were dispensed to veterans by medical facility pharmacies. VHA pharmacies can return drugs that become damaged or expire before use through a reverse distributor for credit or destruction. In FY 2019, VHA expected to receive about $52 million from drug returns.
The VA Office of Inspector General (OIG) audited the prescription drug return program to determine if VHA was effectively overseeing the program to maximize benefits to taxpayers and ensure drugs waiting to be returned are not diverted or otherwise abused.
The OIG found VHA pharmacy chiefs did not effectively implement the program and did not follow requirements in VA’s contract with the reverse distributor, Pharma Logistics. These issues increased the risk of drug diversion and ultimately put about $18.1 million at risk. Pharmacy chiefs did not always secure and track drugs held for return or complete required analyses to maximize returns. They also failed to meet contract requirements to return for credit only drugs due to expire within 120 days. VA’s National Contract Service and network contracting officers needed to do more to ensure contract terms were met. The Office of the Deputy Under Secretary for Health for Policy and Services and the Office of the Deputy Under Secretary for Health for Operations and Management did not effectively govern the program or communicate requirements to medical facilities.
The OIG made eight recommendations, including ensuring medical facilities are properly securing and accounting for drugs set aside for return, minimizing the number of drugs returned while maximizing the value of returned drugs, and ensuring all offices and positions with defined responsibilities for the program or the administration of any future drug return contracts have the support and the authority to fulfill those responsibilities.
Date Issued:
Thursday, August 12, 2021
Agency Reviewed / Investigated:
Submitting OIG-Specific Report Number:
20-00418-166
Component, if applicable:
Veterans Health Administration
Location(s):
Agency-Wide
Type of Report:
Audit
Questioned Costs:
$307,365
Funds for Better Use:
$14,600,000
Number of Recommendations:
8
View Document:
Attachment | Size |
---|---|
VAOIG-20-00418-166.pdf | 1.5 MB |
Additional Details Link: