Department of Health and Human Services

OFFICE OF 

INSPECTOR GENERAL 

 

 

HEALTH EDUCATION ASSISTANCE 

LOAN DEFAULTERS WITH 

INCOME IN FISCAL YEAR 2008 

 

Daniel R. Levinson 

Inspector General 

February 2010 

OEI-03-09-00100 
 

 

 EXECUTIVE SUMMARY 

OBJECTIVE

To determine whether individuals who have defaulted on their Health 

Education Assistance Loans (HEAL) received income in fiscal year 

(FY) 2008 that might enable them to make payments on these loans. 

BACKGROUND 

The HEAL program began in 1978 to help eligible graduate students in 

health professions finance their education. Although no new HEAL 

loans have been issued since September 30, 1998, the Health Resources 

and Services Administration (HRSA) in the Department of Health & 

Human Services (HHS) continues to oversee prior loans made by 

participating lenders, such as banks and credit unions. HHS’s Program 

Support Center (PSC) provides HRSA with debt management services, 

which include many of the activities involved in trying to obtain 

payments when individuals default on HEAL loans. Through the HEAL 

program, 157,388 borrowers received $4 billion in HEAL loans. 

HHS reimburses lenders for any HEAL loans that are not repaid 

because of borrowers’ default, bankruptcy, death, or total and 

permanent disability. After a lender has tried to obtain repayment from 

a HEAL borrower and failed, it requests payment from HRSA. HRSA 

approves the claim for payment and then PSC initiates an extensive 

loan collection process. If, at the end of this process, the borrower does 

not enter into a repayment agreement, the Department of Justice (DOJ) 

requests that PSC refer the case to the HHS Office of Inspector General 

(OIG). OIG then notifies the borrower that he or she is being excluded 

from participation in Federal health care programs. 

When OIG excludes a HEAL borrower, PSC includes the individual on 

the defaulted borrowers list. PSC provides this list to HRSA to publish 

on its Web site (http://www.defaulteddocs.dhhs.gov) at the next 

quarterly update. HEAL defaulters are removed from this list when 

their debt is repaid or they enter into settlement agreements with DOJ 

and OIG to repay their debt. HEAL defaulters may make loan 

payments, but unless they enter into settlement agreements, they are 

still considered to be in default and remain on the defaulted borrowers 

list. 

Almost all HEAL borrowers have repaid or are in the process of 

repaying their loans through their original or refinancing agreements. 

However, 1,065 HEAL borrowers on the defaulted borrowers list owed 

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EXECUTIVE SUMMARY 

$147 million in principal and interest as of November 1, 2008. Because 

of the accrual and compounding of interest, the amounts some 

defaulters owed far exceeded their original loan amounts. 

The State Identification Inquiry (SIDI) is an application States use to 

obtain information on individuals’ wages and unemployment benefits 

nationwide. Using data obtained from SIDI, we determined whether 

any of the 1,065 defaulters on the defaulted borrowers list earned 

income in FY 2008. We also obtained from PSC a file containing 

information on any of the 1,065 HEAL defaulters who had made 

payments toward their loans but did not have settlement agreements. 

We used this file to determine whether any of the HEAL defaulters with 

income in FY 2008 had made loan payments during that time. 

FINDINGS 

Of the 486 HEAL defaulters who earned income in FY 2008, 

312 made no payments on their loans during that time. Based on 

wages identified through SIDI, 486 of the 1,065 HEAL defaulters 

earned income in FY 2008. The remaining 579 defaulters did not have 

income information identified in SIDI. Of the 486 defaulters, 312 made 

no loan payments during that time. These 312 HEAL defaulters owed 

$47.5 million on their loans and earned $13.4 million in FY 2008. The 

median income for these defaulters was $34,387. Ninety-eight 

defaulters (31 percent) earned $50,000 or more. Four of these 

defaulters earned $200,000 or more. The 98 defaulters were responsible 

for nearly $15 million (31 percent) of the $47.5 million owed. 

Of the 174 HEAL defaulters who earned income and made loan 

payments in FY 2008, nearly half paid less than $2,000 each during 

that time. A total of 174 HEAL defaulters earned income and made one 

or more loan payments in FY 2008. The median income for these 

defaulters was $47,331. However, 78 (45 percent) paid less than $2,000 

each and, of these, 24 paid less than $500 each toward their loans in 

FY 2008. These 174 HEAL defaulters owed $22.5 million on their loans 

and earned $9.6 million in FY 2008. The amounts these defaulters paid 

totaled $659,135 in FY 2008, or just 3 percent of their total loan balance 

during that time. 

RECOMMENDATIONS 

The HEAL program was established to help students in the health 

professions finance their education. Almost all HEAL borrowers have 

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EXECUTIVE SUMMARY 

repaid or are in the process of repaying their loans; however, as of 

November 2008, a small number of borrowers had defaulted on their 

loans. 

Our review found that 486 of the 1,065 HEAL defaulters on the 

defaulted borrowers list had earned income in FY 2008. A portion of 

these defaulters earned income that seemingly would enable them to 

make payments on their outstanding loans; however, these defaulters 

made minimal or no such payments. 

We recommend that HRSA work with PSC to: 

Use the information we provide on these HEAL defaulters to assist 

with HEAL collection efforts. 

Consider obtaining wage data from Federal or State sources to 

enable HRSA and PSC to target future collection efforts on defaulters 

with income. 

AGENCY COMMENTS AND OFFICE OF INSPECTOR GENERAL 

RESPONSE 

HRSA concurred with our recommendations and stated that upon 

receipt of the data from OIG, PSC will review and share the information 

with DOJ. Additionally, HRSA stated that consideration will be given 

to obtaining wage data on health professionals who have defaulted on 

their financial obligation. We have provided PSC with detailed 

information on the 486 HEAL defaulters who earned income in 

FY 2008. 
 TABLE OF CONTENTS 

EXECUTIVE SUMMARY ..................................i

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 

FINDINGS ............................................... 6

 

Of the 486 defaulters who earned income in FY 2008, 312 made 

no payments on their loans during that time . . . . . . . . . . . . . . . . . 6 

Of the 174 defaulters who earned income and made loan 

payments in FY 2008, nearly half paid less than $2,000 each 

during that time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 

RECOMMENDATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 

 Agency Comments and Office of Inspector General Response .... 9 

APPENDIX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 

A: Agency Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 

ACKNOWLEDGMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
 

 

INTRODUCTION INTRODUCTION 

OBJECTIVE 

To determine whether individuals who have defaulted on their Health 

Education Assistance Loans (HEAL) received income in fiscal year 

(FY) 2008 that might enable them to make payments on these loans. 

BACKGROUND 

The HEAL program began in 1978 to help eligible graduate students in 

health professions finance their education. Although no new HEAL 

loans have been issued since September 30, 1998, the Health Resources 

and Services Administration (HRSA) in the Department of Health & 

Human Services (HHS) continues to oversee prior loans made by 

participating lenders, such as banks and credit unions. 

Under the HEAL program, students of allopathic and osteopathic 

medicine, dentistry, veterinary medicine, optometry, and podiatry were 

allowed to borrow up to $80,000. Students of pharmacy, chiropractic 

medicine, health administration, public health, allied health, and 

clinical psychology were allowed to borrow up to $50,000. Through this 

program, 157,388 borrowers received $4 billion in HEAL loans. 

In recent years, several HEAL defaulters have been identified as 

receiving income that would enable them to repay their loans. In 

October 2008, a local Boston television station identified two HEAL 

defaulters, with a total of approximately $600,000 in HEAL debt, as 

practicing dentists. Another HEAL defaulter was indicted for making 

false statements to conceal his income and ability to repay his HEAL 

loan. In October 2007, he was sentenced to 1 year probation and 

ordered to pay $158,469 in restitution to the Government. 

Interest accrues on HEAL loans from the dates of disbursement until 

the dates the loans are paid in full .1 Interest can be compounded (i.e., 

added to the principal) as often as every 6 or 12 months depending on 

the date of the original loan. HEAL borrowers have as long as 25 years 

to repay their original loans. If HEAL borrowers refinanced their loans, 

they have 25 years from the refinance dates to repay the new loans.2 

1 HRSA, Student Financial Aid Guidelines, October 2000. Available online at 

http://www.bhpr.hrsa.gov/dsa/sfag/PDFs/6healcor.pdf. Accessed on November 4, 2008. 

2 The HEAL refinancing program ended on September 30, 2004. 

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INTRODUCTION 

Almost all HEAL borrowers have repaid or are in the process of 

repaying their loans through their original or refinancing agreements. 

As of September 2008, there were 31,785 borrowers in the process of 

repaying lenders $980 million in principal and interest. 

However, 1,065 HEAL borrowers were on the defaulted borrowers list 

as of November 1, 2008. These 1,065 defaulters owed $147 million in 

principal and interest. The amounts owed by individual defaulters 

ranged from $453 to $759,984. The 1,065 HEAL defaulters owed a 

median of $106,146. Because of the accrual and compounding of 

interest, the amounts some defaulters owed far exceeded their original 

loan amounts. 

Default Process 

HHS reimburses lenders for loans that are not repaid because of 

borrowers’ default, bankruptcy, death, or total and permanent 

disability. HHS’s Program Support Center (PSC) provides HRSA with 

debt management services, which include many of the activities 

involved in trying to obtain payments when individuals default on 

HEAL loans. After a lender has tried to obtain repayment from a HEAL 

borrower and failed, it requests payment from HRSA. The claims for 

payment are approved by HRSA, and PSC sends the funds to the lender. 

PSC then initiates an extensive loan collection process. PSC notifies the 

borrower that the Government holds the promissory note and that 

payment is due. If repayment does not begin, the account is sent to a 

collection agency. If the collection agency is unable to collect within 6 

months, the account is returned to PSC and a final demand letter is 

sent to the borrower to begin repayment. PSC sends the borrower’s 

information to the Treasury Offset Program, which offsets payments 

made by Federal agencies, such as the Internal Revenue Service. PSC 

then applies these offsets to the borrower’s debt. 3

If the borrower does not begin repayment, PSC sends the account to the 

Department of Justice (DOJ) to obtain and/or enforce a judgment 

against the borrower. If the borrower does not comply with DOJ 

demands, DOJ requests PSC to send a 60-day warning letter to the 

borrower. This notifies the borrower that he or she must enter into a 

repayment agreement with DOJ or risk exclusion from all Federal 

3 For example, payments from Federal income tax refunds can be offset, which means 

that the tax refund would be withheld and applied to the defaulter’s debt instead. 

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INTRODUCTION 

health care programs.4 If the borrower does not enter into a repayment 

agreement, DOJ requests that PSC refer the case to the Office of 

Inspector General (OIG). OIG then notifies the defaulter that he or she 

is being excluded from participation in Federal health care programs.5

Defaulted Borrowers List 

HRSA is required by law to publish a quarterly list of HEAL borrowers 

who have been excluded by OIG.6 Information concerning each 

defaulter, including name, State, amount due, school, and field of study, 

is published on this list. When OIG excludes a HEAL defaulter, it sends 

a copy of the exclusion letter to PSC. PSC then includes the individual 

on the defaulted borrowers list. PSC provides this list to HRSA to 

publish on its Web site (http://www.defaulteddocs.dhhs.gov) at the next 

quarterly update. HEAL defaulters are removed from the defaulted 

borrowers list when their debt is repaid or they enter into settlement 

agreements with DOJ and OIG to repay their debt. The defaulted 

borrowers’ list changes as defaulters are removed and as new defaulters 

are added. 

HEAL Payment Information 

HEAL defaulters may make payments on their loans; however, they still 

remain on the defaulted borrowers list until they enter into settlement 

agreements to repay their loans. According to PSC, HEAL defaulters 

may not have an incentive to enter into settlement agreements if the 

consequences of exclusion from Federal health programs do not affect 

them. 

METHODOLOGY 

Data Collection 

HEAL defaulter information. We obtained from PSC an electronic file 

containing information about the 1,065 individuals on the HEAL 

defaulted borrowers list as of the November 2008 quarterly update. 

4 The Social Security Act, § 1892, also provides the borrower with the opportunity to cure 

the default using an offset agreement, 42 U.S.C. § 1395ccc. 

5 OIG has the authority to exclude these defaulters under Social Security Act, 

§ 1128 (b)(14), 42 U.S.C. § 1320a-7(b)(14). To the extent the borrower is offered an offset 

agreement and refuses to enter into it, breaches the agreement, or does not provide 

sufficient services to maintain the offset collection, OIG must also exclude the borrower 

from participation in Medicare under the Social Security Act, § 1892(a)(2)(C) or (a)(3)(B), 

42 U.S.C. § 1395ccc(a)(2)(C) or (a)(3)(B). 

6 Public Health Service Act, § 709(c)(1), 42 U.S.C. § 292h(c)(1). 

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INTRODUCTION 

This file included each individual’s name, address, Social Security 

number, date of default, and default amount. We use the term “HEAL 

defaulter” throughout this report to refer to individuals who are on the 

defaulted borrowers list. 

HEAL payment data. We obtained from PSC a file containing information on 

any of the 1,065 HEAL defaulters who had made payments toward their 

loans but did not have settlement agreements. This file included each 

individual’s name, Social Security number, date of payment, and payment 

amount. We received the payment file in January 2009. 

State Identification Inquiry. The State Identification Inquiry (SIDI) is an 

application the Department of Labor has made available to State 

unemployment insurance agencies so that they can obtain information on 

individuals’ wages and unemployment benefits nationwide.7 With the 

exception of Hawaii, all States and the District of Columbia contribute 

data to and have agreements enabling them to access the information in 

SIDI. 

Data Analysis 

We used data obtained from SIDI to identify HEAL defaulters’ 

employers and income for FY 2008. The Social Security numbers of the 

1,065 defaulters were entered into SIDI to obtain employer names and 

amounts earned per quarter. Based on the SIDI search results, we 

quantified the number of HEAL defaulters who earned income in 

FY 2008 and the amount they earned. The SIDI search was performed 

in February 2009. 

We also determined whether any of the HEAL defaulters with income in 

FY 2008 had made loan payments during that time. To do this, we 

matched the payments data received from PSC with those defaulters 

identified in SIDI as having income for FY 2008. We quantified the 

number of HEAL defaulters who had made payments in FY 2008 and 

the amount of those payments. 

For defaulters who earned $200,000 or more in FY 2008, we reviewed 

the employer names identified through SIDI to determine whether 

these defaulters earned income in the health care field. 

Limitations. Our analysis was limited to those defaulters who had FY 2008 

income information identified in SIDI. There were 579 of 1,065 defaulters 

7 Wages on which employers do not pay unemployment insurance tax (e.g., payment to 

independent contractors) are not contained in SIDI. 

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INTRODUCTION 

on the defaulted borrowers list who did not have FY 2008 income 

information identified in SIDI. We did not independently verify 

information obtained through SIDI. Since the defaulted borrowers list is 

updated quarterly, some individuals identified on the November 2008 list 

may have since been removed. 

Standards 

This study was conducted in accordance with the “Quality Standards for 

Inspections” approved by the Council of the Inspectors General on 

Integrity and Efficiency. 

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F

6 

FINDINGS INDING 

 

 

 FINDINGS 

Of the 486 HEAL defaulters who earned 

income in FY 2008, 312 made no payments 

on their loans during that time 

Based on wages identified through 

SIDI, 486 of the 1,065 HEAL 

defaulters (46 percent) who were in 

default as of November 2008 

earned income in FY 2008. The remaining 579 defaulters did not have 

income information identified in SIDI. The 486 HEAL defaulters owed 

$70 million on their loans and earned $23 million in FY 2008. 

Based on wages identified through 

SIDI, 486 of the 1,065 HEAL 

defaulters (46 percent) who were in 

default as of November 2008 

earned income in FY 2008. The remaining 579 defaulters did not have 

income information identified in SIDI. The 486 HEAL defaulters owed 

$70 million on their loans and earned $23 million in FY 2008. 

Of the 486 HEAL defaulters who earned income in FY 2008, 312 made 

no loan payments during that time. These 312 HEAL defaulters owed 

$47.5 million on their loans and earned $13.4 million in FY 2008. The 

median income for these defaulters was $34,387. Ninety-eight of the 

312 defaulters (31 percent) earned $50,000 or more. These 

98 defaulters were responsible for nearly $15 million (31 percent) of 

the $47.5 million owed. 

Of the 486 HEAL defaulters who earned income in FY 2008, 312 made 

no loan payments during that time. These 312 HEAL defaulters owed 

$47.5 million on their loans and earned $13.4 million in FY 2008. The 

median income for these defaulters was $34,387. Ninety-eight of the 

312 defaulters (31 percent) earned $50,000 or more. These 

98 defaulters were responsible for nearly $15 million (31 percent) of 

the $47.5 million owed. 

Table 1 shows the income ranges of the 312 HEAL defaulters who 

earned income but did not make any loan payments in FY 2008 along 

with the amounts they owed. 

Table 1. Income Earned and Amount Owed by 312 HEAL Defaulters 

Who Did Not Make Any Loan Payments in FY 2008 

FY 2008 Income Number of 

Defaulters

Percentage of 

Defaulters

Amount 

Owed in 

Millions 

Percentage 

of Total 

Balance

Under $30,000 143 46% $21.9 46%

$30,000–$49,999 71 23% $10.8 23%

$50,000–$74,999 47 15% $6.1 13%

$75,000–$99,999 25 8% $3.8 8%

$100,000–$199,999 22 7% $4.2 9%

$200,000 or more 4 1% $0.7 1%

 Total 312 100% $47.5 100% 

Source: OIG analysis of SIDI data. 

As Table 1 shows, four defaulters who each earned over $200,000 in 

FY 2008 made no payments toward their HEAL loans in that time. One 

of these defaulters earned $381,339 while employed in a dental practice 

in FY 2008. Another defaulter earned $258,424 through a dental 

practice as well. 

As Table 1 shows, four defaulters who each earned over $200,000 in 

FY 2008 made no payments toward their HEAL loans in that time. One 

of these defaulters earned $381,339 while employed in a dental practice 

in FY 2008. Another defaulter earned $258,424 through a dental 

practice as well. 

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FINDINGS 

Of the 174 HEAL defaulters who earned income 

and made loan payments in FY 2008, nearly half 

paid less than $2,000 each 

during that time 

There were 174 HEAL defaulters 

who earned income in FY 2008 and 

made at least one loan payment 

during that time. HEAL defaulters 

may make loan payments at any 

time, but they are still considered to be in default and remain on the 

defaulted borrowers list until they enter into settlement agreements. 

These 174 HEAL defaulters owed $22.5 million on their loans and 

earned $9.6 million in FY 2008. The amount these defaulters paid 

totaled $659,135 in FY 2008, or just 3 percent of their total loan balance 

during that time. 

Table 2 shows the income ranges, the total amounts paid, and the 

amounts owed for the 174 HEAL defaulters who made loan payments in 

FY 2008. 

Table 2. Income Earned, Total Amounts

7 

Paid, and Amounts Owed by 

174 HEAL Defaulters Who Made Loan Payments in FY 2008 

FY 2008 Income Number of 

Defaulters

Total 

Amount 

Paid

Amount 

Owed in 

Millions1

Percentage 

of Balance 

Paid Off

Under $30,000 53 $187,248 $7.8 2%

$30,000–$49,999 39 $119,090 $4.1 3%

$50,000–$74,999 44 $158,509 $5.6 3%

$75,000–$99,999 21 $76,571 $2.5 3%

$100,000–$199,999 13 $95,583 $2.2 4%

$200,000 or more 4 $22,134 $0.4 6%

 Total 174 $659,135 $22.5 3%

1 The amounts owed in this table add up to $22.6 million instead of $22.5 million because of rounding. 

Source: OIG analysis of PSC payments data. 

The median income for defaulters who made loan payments was 

$47,331. However, 78 (45 percent) paid less than $2,000 each and, of 

these, 24 paid less than $500 each toward their loans in FY 2008. 

Table 3 shows the range of payments for the 174 HEAL defaulters who 

made payments in FY 2008. 

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 FINDINGS 

Table 3. Range of Payments for 174 HEAL Defaulters Who Made 

Loan Payments in Fiscal Year 2008 

FY 2008 Loan Payments Number of 

Defaulters 

Percentage of 

Defaulters

Under $500 24 14%

$500–$999 18 10%

$1,000–$1,999 36 21%

$2,000–$2,999 27 16%

$3,000–$4,999 28 16%

5,000–$9,999 29 17%

$10,000 or more 12 7%

 Total 174 100% 1

1

 Percentages in this table do not total 100 percent because of rounding. 

Source: OIG analysis of PSC payments data. 

Four HEAL defaulters who earned over $200,000 in FY 2008 made loan 

payments during that time. One of the defaulters who earned over 

$200,000 paid just $227 in FY 2008; the remaining three defaulters paid 

between $5,238 and $9,700. Two of these defaulters, who earned 

$274,708 and $207,846 respectively, earned income through dental 

practices. 

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 RECOMMENDATIONS 

The HEAL program was established to help students in the health 

professions finance their education. Almost all HEAL borrowers have 

repaid or are in the process of repaying their loans; however, as of 

November 2008, a small number of borrowers had defaulted on their 

loans. 

Our review found that 486 of the 1,065 HEAL defaulters on the 

defaulted borrowers list had earned income in FY 2008. A portion of 

these defaulters earned income that seemingly would enable them to 

make payments on their outstanding loans; however, these defaulters 

made minimal or no such payments. 

We will share the results of our review with HRSA and PSC staff to 

assist them in their HEAL collection efforts. HRSA can share this 

information with DOJ to enhance its debt collection efforts for those 

defaulters. 

We recommend that HRSA work with PSC to: 

Use the information we provide on these HEAL defaulters to assist 

with HEAL collection efforts 

HRSA and PSC staff may want to focus their efforts on those HEAL 

defaulters we identified as having the highest income in FY 2008. 

Consider obtaining wage data from Federal or State sources to enable 

HRSA and PSC to target future collection efforts on defaulters with 

income 

AGENCY COMMENTS AND OFFICE OF INSPECTOR GENERAL 

RESPONSE 

HRSA concurred with our recommendations and stated that upon 

receipt of the data from OIG, PSC will review and share the information 

with DOJ to assist DOJ with its collection and litigation efforts. PSC 

will initially focus its efforts on individuals who had income greater 

than $75,000. Additionally, HRSA stated that consideration will be 

given to obtaining wage data on health professionals who have 

defaulted on their financial obligation. We have provided PSC with 

detailed information on the 486 HEAL defaulters who earned income in 

FY 2008. For the full text of HRSA’s comments, see Appendix A. 

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A P PEN 0 x A 

Agency Comments 

/"""'~~ .•r, DEPARTMENT OF HEALTH &. HUMAN SERVICES

Health Resources and Services \ ~E Administration

"·~/·:":It"...~o{} 

Rockville, MD 20857 

JAN 1 2 2010 

TO: Inspector General 

FROM: Administrator 

SUBJECT: OIG Draft Report: "Health Education Assistance Loan Defaulters With Income in 

Fiscal Year 2008" (OEI-03-09-00100) 

This is in response to the OIG's request for comments on the draft report, "Health Education 

Assistance Loan Defaulters With Income in Fiscal Year 2008" (OEI-03-09-001 00). Attached are 

the Health Resources and Services Administration's (HRSA) comments. If you have any 

questions, please contact Patricia A. Reese in HRSA's Office ofFederal Assistance Management 

at (301) 443-0270. 

Mary KWakefield, Ph.D., R.N. 

Attachment 

oEI-03 -0 9-00 1 00 HEALTH EDUCATION ASSISTANCE LOAN DEFAULTERS WITH INCOME IN FISCAL YEAR 2008 10 
 

 

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A PPENDIX ~ A 
 

 

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 ACKNOWLEDGMENTS

This report was prepared under the direction of Robert A. Vito, Regional 

Inspector General for Evaluation and Inspections in the Philadelphia 

regional office, and Linda M. Ragone, Deputy Regional Inspector 

General. 

Tara Bernabe served as the team leader for this study. Other principal 

Office of Evaluation and Inspections staff from the Philadelphia 

regional office who contributed to the report include Nancy J. 

Molyneaux; central office staff who contributed include Talisha Searcy. 
Office of Inspector General 

http://oig.hhs.gov 

The mission of the Office of Inspector General (OIG), as mandated by Public Law 95-452, as 

amended, is to protect the integrity of the Department of Health and Human Services 

(HHS) programs, as well as the health and welfare of beneficiaries served by those 

programs. This statutory mission is carried out through a nationwide network of audits, 

investigations, and inspections conducted by the following operating components: 

Office of Audit Services 

The Office of Audit Services (OAS) provides auditing services for HHS, either by conducting 

audits with its own audit resources or by overseeing audit work done by others. Audits 

examine the performance of HHS programs and/or its grantees and contractors in carrying 

out their respective responsibilities and are intended to provide independent assessments of 

HHS programs and operations. These assessments help reduce waste, abuse, and 

mismanagement and promote economy and efficiency throughout HHS. 

Office of Evaluation and Inspections 

The Office of Evaluation and Inspections (OEI) conducts national evaluations to provide 

HHS, Congress, and the public with timely, useful, and reliable information on significant 

issues. These evaluations focus on preventing fraud, waste, or abuse and promoting 

economy, efficiency, and effectiveness of departmental programs. To promote impact, OEI 

reports also present practical recommendations for improving program operations. 

Office of Investigations 

The Office of Investigations (OI) conducts criminal, civil, and administrative investigations 

of fraud and misconduct related to HHS programs, operations, and beneficiaries. With 

investigators working in all 50 States and the District of Columbia, OI utilizes its resources 

by actively coordinating with the Department of Justice and other Federal, State, and local 

law enforcement authorities. The investigative efforts of OI often lead to criminal 

convictions, administrative sanctions, and/or civil monetary penalties. 

Office of Counsel to the Inspector General 

The Office of Counsel to the Inspector General (OCIG) provides general legal services to 

OIG, rendering advice and opinions on HHS programs and operations and providing all 

legal support for OIG’s internal operations. OCIG represents OIG in all civil and 

administrative fraud and abuse cases involving HHS programs, including False Claims Act, 

program exclusion, and civil monetary penalty cases. In connection with these cases, OCIG 

also negotiates and monitors corporate integrity agreements. OCIG renders advisory 

opinions, issues compliance program guidance, publishes fraud alerts, and provides other 

guidance to the health care industry concerning the anti-kickback statute and other OIG 

enforcement authorities.