We examined select payments made by the Department of Health (DOH) to Supplemental Health Care (SHC) and Worldwide Travel Staffing Limited (WTSL) from July 1 through August 31, 2011 for temporary personnel provided under contracts PS63471 and PS63482, respectively. Under these contracts, DOH is entitled to a cash discount for payments made within each contract's specified discount period. We found DOH did not receive cash discounts it was entitled to for eligible payments made during the examination period. As a result, DOH overpaid SHC $782 and WTSL $479.
Since DOH staff were not aware of the discounts available to them under these contracts, there is a high likelihood DOH did not receive all the discounts it was eligible for. We estimate the State missed the opportunity to obtain an additional $141,386 in cash discounts, or a total of $142,647, for all payments that were eligible for a discount since the inception of the contracts in November 2007.
For a complete copy of Report 2011-0035-1 click here.