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Virginia Department of Health audit finds ‘significant financial irregularities’

Crystal Graham
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The Virginia Department of Health has completed a year-long audit into its Office of Emergency Medical Services, or OEMS, and found “significant financial irregularities.”

The issues date back to 2019 and resulted in $33 million in unpaid debts and over-obligations including more than $4 million in fraudulent charges.

A former employee, Adam Lamar Harrell, pled guilty in July to charges related to a financial scheme where he benefitted and used the funds to purchase real estate, luxury vehicles, firearms and jewelry. Harrell will be sentenced on Nov. 20.

VDH Commissioner Dr. Karen Shelton requested the internal audit. The audit found multi-million contracts that bypassed state procurement rules as well as the improper allocation of grant funds.

“Lack of oversight and internal controls within OEMS led to financial irregularities and criminal fraud that had impacts at state, regional and local EMS levels,” said Shelton. “While these findings are difficult to confront, VDH has been taking proactive measures to address these issues which will lead to a well-supported EMS system across the Commonwealth.”

The internal audit report outlined 63 key recommendations for VDH leadership and the OEMS. Some of the changes have already been implemented.

“The changes we have implemented will ensure that the Office of Emergency Medical Services is now in a much stronger financial position, with the right leadership structure and resources in place,” said Chief Operating Officer Christopher Lindsay. “This allows EMS providers across the Commonwealth to be better supported and ready to respond when Virginians need them most.”

Changes which have been implemented

  • Placement of an interim director of OEMS since the fall 2023
  • Reorganization of the OEMS leadership structure, including the permanent placement of a dedicated business operations manager to consult on financial decisions
  • Weekly briefings for VDH senior leadership on all aspects of OEMS restructuring and financial status
  • Evaluation and restructuring of all OEMS contracts and business relations to ensure compliance with the Commonwealth of Virginia procurement and contracting requirements
  • Redesign of the Trauma Fund payout plan to create more transparency and regularity of payment for Virginia’s trauma centers
  • Ensuring that all funds committed to the “Return to Locality,” “Rescue Squad Assistance Fund,” and “Trauma Funds” are used in accordance with the Virginia Code

Recommendations based on best practices

Following a review of the audit findings, Fitch & Associates, an EMS consulting firm contracted by VDH, presented its recommendations to improve the strategic direction of the OEMS based on best practices.

  • A plan to position OEMS for stronger oversight
  • A proposed revised regional council structure and oversight model
  • A recommended policy and regulatory framework
  • Suggested enhancements to the EMS Advisory Board, EMS programs and their functions

To learn more, visit www.vdh.virginia.gov/emergency-medical-services/.

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Crystal Graham

Crystal Graham

Crystal Abbe Graham is the regional editor of Augusta Free Press. A 1999 graduate of Virginia Tech, she has worked for 25 years as a reporter and editor for several Virginia publications, written a book, and garnered more than a dozen Virginia Press Association awards for writing and graphic design. She was the co-host of "Viewpoints," a weekly TV news show, and co-host of Virginia Tonight, a nightly TV news show on PBS. Her work on "Virginia Tonight" earned her a national Telly award for excellence in television.