NYC vendor accused of wasteful COVID spending, got $700M in contracts

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NYC vendor accused of wasteful COVID spending, got $700M in contracts
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While the health department succeeded in placing COVID-19 services around the city, it didn’t keep a close enough eye on how much Affiliated Physicians was spending to run 315 sites, according to a new report.

Make your contribution now and help Gothamist thrive in 2023.Financial watchdogs criticized a New York City contractor last month for overstaffing and wasteful spending at the height of the COVID-19 pandemic. That same company has gotten more than $700 million in contracts since the pandemic began, public records show — including a $219 million contract filed earlier this month.to care for recently arrived migrants in early 2023, as Gothamist previously reported.

The contract, which was written in May 2020 during the de Blasio administration and extended through the end of 2022 under the Adams administration, promised Affiliated Physicians $150 per hour for every staff member on site, in addition to payouts for each test or shot administered. Combined with scant oversight of how many workers were assigned to each clinic, the report alleged that per-person rate led to skyrocketing costs, often without the results to match.

“Especially as multiple city agencies deploy emergency contracting to address the humanitarian crisis created by the arrival of tens of thousands of individuals seeking asylum, and as New York City prepares for future crises from extreme weather to future health emergencies, City agencies must be prepared to contain emergency spending costs,” Deputy Comptroller for Audit Maura Hayes Chaffe wrote..

The audit’s authors urged the health department and other city agencies to take pains to keep future emergency contracts from spiraling out of control. They suggested that agencies track spending closely and try to approximate a competitive bidding process as best as they can under emergency circumstances. For the health department, the report recommended that officials set careful staffing levels and carefully watch for signs of over-full rosters.

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