Review of Alleged Misuse of VA Funds at the VA Pittsburgh Healthcare System

The OIG substantiated an allegation that VA Pittsburgh Healthcare System (VAPHS) staff provided free meals for medical residents without the required meal plan. The VAPHS Director could have authorized the meals under an approved meal plan for residents comparable to those at the facility’s index hospital, the University of Pittsburgh Medical Center. However, the Chief of Staff, who is responsible for reviewing this activity annually, overlooked the requirement for an approved meal plan. As a result, VAPHS used about $441,000 in appropriated funds to purchase catered meals for medical residents from April 2013 through March 2015 without such a plan. In addition, OIG did not substantiate the assertion that the meals were lavish, but the cost of these commercial meals was more than the cost of similar catered meals potentially available from the Veterans Canteen Service (VCS). VAPHS missed the opportunity to acquire potentially less expensive meals from VCS, rather than using this competitively selected commercial caterer. In January 2016, in response to our review, the VAPHS Director established a meal plan for residents.