Review of Supply Chain Management at the VA Augusta Health Care System in Georgia

The VA Office of Inspector General (OIG) reviewed supply chain management practices at the VA Augusta Health Care System in Georgia. The review was initiated after the VA Secretary, a VISN leader, and a healthcare system leader raised concerns in March 2026 regarding persistent supply chain issues threatening operations and patient care. The review assessed whether facility leaders effectively oversaw supply chain operations and adhered to Veterans Health Administration policies from March through June 2026. The assessment focused on four areas with recurring weaknesses: supply chain leadership, expendable supplies inventory, nonexpendable equipment inventory, and warehouse and distribution controls.

The OIG found that the facility did not consistently meet requirements for managing critical supplies and equipment. Oversight weaknesses increased the risk of missing equipment, expired products, and disruptions to patient care. These issues aligned with deficiencies previously identified by the OIG at VA facilities nationwide.

Notably, facility staff reported four operating room closures between October 2025 and February 2026—including one lasting 27 days—due to incomplete supply kits, expired supplies, and unreliable restocking processes. The OIG found significant inventory inaccuracies stemming from limited barcode scanning and handwritten logs. In a sample of 35 nonexpendable equipment items, five valued at about $25,000 could not be located or accounted for.

The OIG also observed unsafe and disorganized storage conditions in the facility’s warehouses and found more than 50 pallets of expired, excess, damaged, or obsolete supplies. The healthcare system awarded a $3.2 million contract for an inventory management system but never fully installed or used it, and the OIG found system equipment abandoned in a warehouse.

The OIG made seven recommendations to improve the healthcare system’s controls over supply chain management operations to support accountability and stewardship of taxpayer dollars.