RICHMOND, Va. -- "Weak oversight" by some of Virginia's top health leaders caused the state's Office of Emergency Medical Services (OEMS) to experience a severe financial crisis.
According to an internal audit by the Virginia Department of Health, which oversees OEMS, lack of oversight, lack of proper financial procedures, and a lack of care for Virginia Code are just some of the issues that led OEMS to face $33.3 million in debt.
Investigators say the same environment also allowed a former employee to embezzle more than $4 million.
VDH leaders revealed the results of the internal probe on Wednesday, which broke down issues among leadership, budget monitoring, and misuse of funds.
According to the audit, OEMS's Trauma Center Fund recipients received late payments, and due to improper transfer of funds, the fund saw a $2.36 million total decrease in cash.
OEMS's Rescue Squad Assistance Fund saw a decrease of $4.13 million, due to a similar issue.
The audit found that in 2022, more than $9,000 of OEMS money was spent on alcoholic beverage packages during travel, which was approved by the former OEMS director.
Vehicles were purchased using OEMS money, despite not following state policy. Travel reimbursement rates were said to be much higher than state norms
The audit found that technology like laptops and iPads, as well as other items, were bought without following policy, including VDH's software policy.
Contracts with outside partners were not executed following VDH and Department of General Services policy, leading to millions of dollars being spent without following state procurement rules.
CBS 6 previously reported the misuse of funds led to a budget crisis that concerned the state's regional EMS councils about their immediate future.
The audit laid out 63 recommendations, including improving collaboration and communication between leadership, establishing regular evaluations and reviews, and establishing policies to make sure financial transactions of any kind are following the Code of Virginia requirements and are vetted.
VDH has already made several changes, including the placement of an interim director of OEMS since fall 2023, the reorganization of the leadership structure, and weekly briefings on restructuring.
“We have a good staff, we have good staff at the office of EMS and they work very hard and very diligently to support EMS services across the state and we have committed to them, to all those who are committed to the mission and vision of VDH, that we have a job available for them going forward, despite the changes that may come and the necessity to make sure that we are meeting our budgetary demands," said VDH Commissioner Dr. Karen Shelton.
Despite the release of the audit, and the state's commitment to improve the direction of OEMS, Jon Henschel, Winchester's Fire Chief, said he's skeptical, wondering if there should be more changes at the top level.
"I am in charge of budget, I am in charge of fiscal management for my organization, as well as my other administrators and I have great difficulty believing that no one else in OEMS leadership had any awareness of any of this," Henschel said. "If it had not been for the financial irregularities that surfaced, how much longer would this have gone with the financial mismanagement? $50 million? $100 million? Who knows. Again, I think there needs to be more accountability at that level and consideration for what took place."
Fitch & Associates, a consulting firm contracted by VDH, shared their findings and the following recommendations:
- 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
This is a developing story. Email the CBS 6 Newsroom if you have additional information to share.
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