Review of Alleged Mismanagement of Medical Supplies at the VA Medical Center, East Orange, New Jersey

We evaluated the merits of allegations that Logistics Service at the East Orange VA Medical Center (VAMC) purchased excess medical supplies resulting in mismanagement of government resources and that a Logistics Service employee was misusing official time by leaving early every Friday. We substantiated the allegation that Medical Supply Distribution Section (MSDS) staff at the East Orange VAMC purchased medical supplies that were beyond normal stock levels. Veterans Health Administration (VHA) policy defines normal stock level as the maximum amount of an item that should be maintained in stock. During an inspection of primary storage areas at the medical center, we identified about 2,900 excess medical supply items valued at approximately $48,100. We reviewed inventory reports to determine whether additional excess medical supplies existed. However, we determined that the inventory reports were inaccurate, and as a result, we could not determine the extent of excess medical supplies at the East Orange VAMC. These inventory issues occurred because Logistics Service and MSDS management did not effectively monitor the staffs’ management of the facility’s medical supply inventories. Additionally, when they did identify inventory discrepancies, logistics staff did not determine why discrepancies were occurring. Without such action, East Orange VAMC cannot implement corrective actions to account for its physical inventories or increase the accuracy of the information in their inventory system. We did not substantiate the time and attendance allegation. We recommended the Interim Director of the Veterans Integrated Service Network 3 ensure the VA New Jersey Health Care System take steps to improve medical supply inventory controls to minimize purchases of excess medical supplies.