State News

Federal audit says DHH mismanaged $50M grant

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Posted: Jul 19, 2011 12:52 PM
Source: Associated Press

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Topics: Federal audit, DHH, Louisiana, Department of Health and Hospitals, Hurricane Katrina, health care, New Orleans, Office of the Inspector General of the U.S. Department of Health and Human Services, WBRZ

BATON ROUGE, La. - A federal audit is charging Louisiana's health department with mismanaging a $50 million post-Hurricane Katrina grant intended to restore health care access to the New
Orleans region.

The Office of the Inspector General of the U.S. Department of Health and Human Services recommends that the state pay back $13.6 million of the money paid to doctors and other medical professionals as incentives to practice in and around the city.

Lisa Faust, spokeswoman for the Louisiana Department of Health and Hospitals, told The Times-Picayune that the state has been working with federal officials to reach a resolution.

She says the state will recoup much less than $13 million, in part because some of the audited errors were a matter of paperwork mistakes, not cases of fraud.

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