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Morning Briefing

Summaries of health policy coverage from major news organizations

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Thursday, Jan 28 2021

Full Issue

Millions Earmarked For Virus, Vaccine Research Treated As 'Slush Fund,' Special Counsel Finds

An HHS inspector general investigation finds that federal funds allocated for scientific advancement by the Biomedical Advanced Research and Development Authority were misappropriated for 10 years by federal officials in the Obama and Trump administrations. They called it tapping the "Bank of BARDA," ABC News reports.

ABC News: Federal Officials Misappropriated Millions Earmarked For Biomedical Research: Investigation 

Over the last decade, federal officials misappropriated millions of dollars designated for biomedical research, including vaccine research, emergency preparedness for public health threats like Ebola, Zika -- and now, COVID-19 -- according to the findings from an investigation into a whistleblower complaint to the U.S. Office of Special Counsel, shared with ABC News. (Pezenik, 1/27)

The New York Times: Millions Meant For Public Health Threats Were Diverted Elsewhere, Watchdog Says

A federal watchdog has found that the Biomedical Advanced Research and Development Authority, which drew national attention last year when the Trump administration fired its director, has been used for the past 10 years as a “slush fund” to cover expenses unrelated to its core mission of fighting health threats like Ebola, Zika and the coronavirus. The 223-page report, issued Wednesday by the Office of Special Counsel, found that the Department of Health and Human Services diverted millions of taxpayer dollars intended for BARDA to finance vaccine research and pandemic preparedness into other government activities, and failed to inform Congress — a potential violation of federal law. (Stolberg, 1/27)

The Hill: Vaccine Research Funding Misused For Decade, Says Special Counsel Office 

Federal officials have misused a fund intended for vaccine research to pay for unrelated expenses since at least 2010, the U.S. Office of Special Counsel alleged in letters to President Biden and Congress on Wednesday. Millions of dollars that Congress appropriated to the Department of Health and Human Services (HHS) for vaccine research and emergency preparedness for public health threats was instead spent on administrative expenses, legal services, unrelated salaries and in one case, the removal of office furniture. (Hellmann, 1/27)

And lawmakers are investigating the purchase of $70 million worth of ventilators —

The Washington Post: House Opens Investigation Of Pandemic Ventilator Purchases Overseen By White House

A House subcommittee is investigating a government deal to buy $70 million worth of ventilators for the coronavirus pandemic response that a Washington Post investigation found were inadequate for treating most covid-19 patients. Last spring, as part of its effort to increase the number of ventilators amid the crisis, the Department of Health and Human Services and the Defense Logistics Agency purchased 11,200 AutoMedx SAVe II+ ventilators from Combat Medical Systems, which distributes the devices. But the ventilators were inadequate for treating covid-19 patients and remain in warehouses, according to Stephanie Bialek, a spokeswoman for the Strategic National Stockpile. (Albergotti and Gregg, 1/27)

Becker's Hospital Review: House Investigates HHS Ventilator Deal

HHS and the Defense Logistics Agency purchased 11,200 ventilators, called the AutoMedx SAVe II+, from AutoMedx and distributor Combat Medical Systems last spring, according to the Post. An investigation by the Post found the ventilators were inadequate for treating most COVID-19 patients, and they've sat unused in warehouses. Adrian Urias, co-founder of AutoMedx and current shareholder, advised the Trump administration's coronavirus task force on ventilator purchases, according to the Post. The House has requested documents and communications from AutoMedx and Combat Medical related to the deal and a description of the negotiations with the government. (Anderson, 1/27)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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