Review of CareFlite's Evacuee Medical Transportation Contract

EXECUTIVE SUMMARY:

As part of its relief operations in response to Hurricanes Katrina and Rita, HHS contracted with CareFlite to arrange transportation for all returning evacuees requiring en route medical care.  OIG's review found that $3,661,154 of the $5,708,508 that CareFlite billed to HHS was allowable.  The remaining $2,047,354 did not fully comply with the contract terms because CareFlite did not always arrange the most economical transportation or the transportation mode selected by discharge planners and documented on patient medical necessity forms. 

OIG recommended that CareFlite (1) work with the HHS contracting officer to determine the allowability of the $1,978,513 in costs billed without having determined the most economical transportation, (2) ensure that future transports are arranged in the most economical fashion, (3) refund $68,841 to HHS for the excess costs resulting from arranging transports at a higher level of care than was medically necessary, and (4) ensure that future transports are arranged using the transportation modes indicated on the medical necessity forms. CareFlite disagreed with these recommendations.