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Audit of Regional Supply Service Center

Announced on  | Last Modified on  | Project Number: A-07-22-04131
Status
Completed
Agency
Indian Health Service

OBJECTIVE

The Indian Health Service (IHS) provides a comprehensive health service delivery system for approximately 2.6 million American Indians and Alaska Natives who belong to 574 federally recognized Tribes in 37 States. IHS has a decentralized management structure that consists of two major components: headquarters offices in Rockville, Maryland, and 12 area offices. IHS's National Supply Service Center (NSSC) serves as the distribution warehouse and supply distribution management center for IHS by providing supply support services and medical supplies to IHS Federal and Tribal Hospitals, Tribal health programs, and Urban Indian Organization health care centers in all 12 IHS areas. The NSSC Director reports to the Area Director of the Oklahoma City Area. Within IHS, but separate from NSSC, the Navajo Area operates a Regional Supply Service Center (RSSC), located in Gallup, New Mexico. The RSSC Director reports to the Area Director of the Navajo Area and has no reporting relationship to NSSC. RSSC provides medical supplies to the Navajo, Albuquerque, and Phoenix IHS areas. Facilities in these three areas can order and receive supplies from both NSSC and RSSC. In a related audit, we are examining NSSC's distribution of medical supplies and equipment during the COVID-19 pandemic. Our objective is to determine whether IHS coordinated NSSC and RSSC operations to distribute supplies to facilities in an effective manner from January 1, 2019, through March 31, 2022.

TIMELINE

REPORT PUBLISHED

IHS Did Not Coordinate Supply Service Center Operations Before and During the COVID-19 Pandemic and Should Consider Upgrading Supply Centers’ Inventory Management Systems and Implementing Policies and Procedures To Enhance Coordination and Alignment (A-07-22-04131)

24-A-07-055.01 to IHS - Closed Implemented
Closed on 06/04/2025
We recommend that Indian Health Service develop and implement policies and procedures that enable the NSSC and the GRSSC to coordinate their operations and communicate directly with one another, align their inventory management systems, and use the same vendors when feasible.

24-A-07-055.02 to IHS - Closed Implemented
Closed on 05/29/2025
We recommend that Indian Health Service consider upgrading the GRSSC's inventory system or implement other strategies to better coordinate the delivery of supplies to all customers.

View in Recommendation Tracker
Work Plan Type
Office of Audit Services
HHS Agencies
Indian Health Service
Issue Areas
Departmental Operational Issues Emergency Preparedness and Response
Target Groups
-
Financial Groups
-