Subcommittee Chair Requests IG Investigation into Philips Ventilator Contract Following Staff Report Detailing Trump Administration Overspent Up to $504 Million
Washington, D.C. (Aug. 6, 2020)—Today, Rep. Raja Krishnamoorthi, the Chairman of the Subcommittee on Economic and Consumer Policy, asked Acting Inspector General Christi Grimm (Acting IG) to launch an investigation into the recent $646 million ventilator procurement contract negotiated between Philips Respironics (Philips) and the Department of Health and Human Services (HHS) to ensure that taxpayer money is spent responsibly and is properly directed to aiding our pandemic response.
“Pertinent evidence of fraud, waste, and abuse was uncovered by the Subcommittee’s investigation and is detailed in the staff report, which we released on July 31, 2020,” said Subcommittee Chair Krishnamoorthi. “The Subcommittee requests that you immediately open an investigation into this apparent waste of taxpayer funds, how it was able to happen unchecked, and how to prevent it in the future.”
The Subcommittee also requested that the Acting IG’s review include an assessment of the reasonableness of the price of the contract and the amount of excess profits received.
On April 15, 2020, the Subcommittee launched an investigation into Philips’ contract with the federal government to determine why the country was without adequate numbers of ventilators during the initial critical months of the coronavirus pandemic. The investigation revealed that before and during the pandemic, inept contract management and incompetent negotiating by the Trump Administration delayed our hospitals receiving necessary ventilators and caused the federal government to overpay for ventilators. In fact, no other U.S. purchaser paid more than HHS.
Click here to read today’s letter.