Damning Audit Shows New York Paid Up To $14,050 Per Covid-19 “Vaccination”

An audit reveals that New York City health officials routinely overpaid a contractor to provide COVID-19 tests and vaccinations, paying as much as $14,050 for a single COVID-19 shot.

Brad Lander, the city comptroller of New York City, discovered that officials allowed Executive Medical Services, a contractor given a contract early in the COVID-19 pandemic, to set its own staffing levels, resulting in out-of-control costs.

Due to the high costs and inefficient procedures, only one vaccination was given for every two billed hours, according to an analysis of the invoices.

“Emergency contracting allows the City to stand up vital services in times of crisis, but demands heightened vigilance to safeguard the fiscal interests of the City. Our audit reveals significant weaknesses in the control mechanisms that impact past, present, and potentially future emergencies. By addressing these challenges head-on, agencies can better spend New York City’s taxpayer dollars wisely and efficiently, even in crises,” Lander, a Democrat, said in a statement.

A request for comment was not answered by the New York City Department of Health and Mental Health Services, which was responsible for paying Executive Medical Services.

Affiliated Physicians, also known as Executive Medical Services, did not respond to a query.

Contract

Executive Medical Services’ initial payment from the agency was up to $500,000. The agency paid the contractor about $390 million after six contract amendments that extended it through the end of 2022.

Executive Medical Services received payment under the contract to build permanent and transient, or popup, sites for COVID-19 testing or vaccination. 267 of the 302 sites were transient.

Lander’s office looked into the Department of Health to determine whether it had ensured that payments made to the contractor were lawful, that staffing levels were reasonably in line with demand, and that sites were established fairly in accordance with the contract’s terms.

While auditors discovered that COVID-19-affected communities had sites established as needed and that most invoices were accompanied by supporting documentation, they also found worrying information regarding staffing levels and costs.

The department “did not adequately control or monitor staffing levels,” Lander’s office said.

According to the agreement, Executive Medical Services would receive $150 per hour across all locations, in addition to $100 for each test and $25 for each shot that were given. The department was in charge of overseeing contractor performance, but the plan lacked criteria for determining whether sites had enough staff in relation to demand, according to auditors. That left the department with “limited means of effectively controlling expenditures or minimizing waste.”

Auditors discovered that one test was administered every 1.6 staff hours and one vaccination every 2 staff hours after examining a sample of 49 invoices and supporting documentation.

Auditors also discovered soaring expenses, such as payments of up to $14,050 for each vaccination given and up to $2,040 for each test performed.

Across various sites, prices varied greatly. The least amount paid per shot given was $70, and the least amount paid for each test was $128.

The organization informed auditors that it assisted in determining staffing levels in accordance with recommendations from the US Centers for Disease Control and Prevention and that some employees, such as managers and observers, did not directly administer tests or vaccinations. Officials said staffing numbers were “pre- determined based on the layout of a particular venue, number of vaccine products offered and anticipated demand.”

“The lives of New Yorkers were saved because of the City’s efforts to provide testing and vaccination services. It is not possible to place a monetary value on a life,” officials added.

Other Failings

The audit also revealed that beginning in December 2020, authorities started expecting the contractor to deliver daily summary reports.

The reports detailed both the work done and the number of employees at each location.

Both a representative from the Department of Health and Executive Medical Services were supposed to sign the reports.

Nevertheless, a sample review revealed that 25% of the reports were not signed by the latter.

The lack of approval by the department means the agency “did not have independent confirmation” of data from some sites before paying the contractor, auditors said.

The department also failed to finish a vendor performance evaluation for the contract by the deadline established by the city’s Procurement Policy Board.

Recommendations

The department should establish a standard procedure for determining staffing levels for contracts, analyze contracts on a regular basis to ensure they are being met effectively, and ensure that evaluations are completed as needed, according to the auditors’ recommendations.

The recommendations were accepted by the department.

On two other recommendations, the department deviated from the comptroller’s position.