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Audit of state EMS office reveals misuse of millions of dollars

Virginia Department of Health Commissioner Karen Shelton requested an audit in summer 2023 after finding "financial irregularities."
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RICHMOND, Va. — The results of a yearlong internal audit into the Virginia Department of Health's Office of Emergency Medical Services (OEMS) were released on Wednesday.

The findings detailed "significant financial irregularities" by former OEMS leadership that led to $33 million in debt, including more than $4 million in fraudulent charges. 

There were also more than one multi-million-dollar contract obtained through bypassing state rules, as well as instances where funds meant to be allocated to two grants to help bolster trauma centers and rescue squads instead went to the EMS Symposium, "EMS-related technology" and inflated operating expenses. 

A former employee has been convicted in relation to the fraud, according to VDH.

"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," VDH commissioner Karen Shelton said. 

"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.”

EMS units across the country have faced an increasingly tight strain on their finances in recent years due to a multitude of factors. That includes Virginia Beach, which is home to the nation's largest volunteer-run EMS system; those issues have been well-documented by 13News Now. 

To remediate the damage, VDH said they've implemented a number of changes, including installing a new interim director of the OEMS in fall 2023, reorganizing the OEMS leadership structure and adding a dedicated business operations manager. They also restructured all OEMS contracts to ensure they are within the state guidelines and introduced weekly briefings to VDH senior leadership on all aspects of OEMS's restructuring and financial status.

“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,” VDH chief operating officer Christopher Lindsay said. 

“This allows EMS providers across the Commonwealth to be better supported and ready to respond when Virginians need them most.”

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