NEW YORK STATE — New York State bought hundreds of millions of dollars’ worth of medical equipment at the onset of the COVID-19 pandemic, including ventilators and X-ray machines, that now sits unused in storage facilities across the state, missing recommended maintenance and costing taxpayers storage expenses, according to an audit released  by New York State Comptroller Thomas P. DiNapoli. 

“During the pandemic, New York State quickly purchased medical equipment to address the public health crisis,” DiNapoli said. “Now, hundreds of thousands of unused devices sit idle. I urge the Department of Health to develop and execute a strategic plan for the maintenance and use of these and future medical equipment purchases, so New York is well prepared for the next public health emergency.” 

To compete for the purchase of durable medical equipment (DME) at the start of the pandemic, the state took emergency steps to accelerate its procurement process, inconsistent with Office of General Services (OGS) guidance. According to the Department of Health (DOH) and OGS, procurement orders during the onset of the pandemic were determined by the former executive chamber with assistance from a consultant who was responsible for projecting the quantity of DME the state would need to respond to COVID-19. 

DiNapoli’s auditors determined the state paid $452.8 million to purchase 247,343 items of DME. Of the DME available for use (including pre-COVID-19 inventory), only 324 items were distributed during the public health emergency, and only three items from the 247,343 durable medical equipment purchased during COVID-19.

When the public health emergency ended, a Medical Stockpile Steering Committee was created to make recommendations on what quantity and type of durable medical equipment should be retained in the emergency stockpile. DOH could not provide auditors with documentation supporting how the steering committee reached their decisions.

Auditors found that DOH began to identify ways to reduce its inventory as COVID cases decreased, but did not finalize a process or create written procedures. Auditors also found a lack of controls during the pandemic contributed to DOH being unable to account for all the durable medical equipment purchased. Looking at a sample of nine credit card purchases, auditors found DOH could not provide proof of delivery for four purchases, which included 140 pieces of DME worth $312,644. 

DiNapoli’s audit recommended DOH maintain basic internal controls during emergency scenarios to ensure stewardship over state assets; document and preserve the process and key factors used when making significant decisions, and keep documentation of key events; develop and implement a strategic plan for DME preventive maintenance so it is ready to use during public health emergencies; and develop and implement a statewide public health strategic plan to utilize surplus DME.