Follow-up Financial Efficiency Inspection of the Southeast Louisiana Veterans Health Care System in New Orleans

The VA Office of Inspector General (OIG) inspected the Southeast Louisiana Veterans Health Care System in New Orleans, Louisiana, in 2021 and made six recommendations. This follow-up inspection found that issues had not been fully resolved in response to those recommendations. The follow-up inspection reassessed the same financial activities and administrative processes: Medical/Surgical Prime Vendor program use, purchase card use, administrative staffing levels, and pharmacy operations.The inspection team visited the Southeast Louisiana Veterans Health Care System in August 2023; interviewed healthcare system leaders and staff; and reviewed data, supporting documents, and processes related to the healthcare system’s financial efficiency.The OIG identified issues with Medical/Surgical Prime Vendor program use, purchase card use, and pharmacy operations. In each area, the healthcare system made limited progress improving issues identified in the OIG’s 2021 report. The inspection team found that the healthcare system improved administrative staffing efficiency, but more opportunities for improvement exist.The OIG reiterated four recommendations from the 2021 inspection where the plans to address the recommendations had not been fully implemented. The OIG also added seven new recommendations to the healthcare system director designed to help officials improve performance. The intent is for system leaders to use these recommendations as a road map to improve financial operations. The recommendations address issues that, if left unattended, may eventually interfere with effective financial efficiency practices and the strong stewardship of VA resources.