Agreement Between HHS and USDA To Finance the Construction and Renovation of Rural Health Centers Is Improper

Highlights

GAO reviewed a 1978 agreement between the Department of Health and Human Services (HHS) and the Department of Agriculture for financing the construction and renovation of rural health center facilities using Farmers Home Administration (FmHA) loans.

Recommendations

Recommendations for Executive Action

Agency Affected	Recommendation	Status
Department of Health and Human Services	The Secretary of Health and Human Services should stop supporting new loans for construction under the HHS/Agriculture loan agreement.	Closed – Implemented When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Health and Human Services	The Secretary of Health and Human Services should discontinue support of all loans for health center projects where construction has not started.	Closed – Implemented When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Health and Human Services	The Secretary of Health and Human Services should withdraw support for projects completed or underway where facilities are not needed and, to the extent appropriate, work with the Farmers Home Administration to find other uses for the facilities. A determination of need should be made during the process of implementing the recommendation in an earlier GAO report.	Closed – Implemented When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Full Report

Full Report (8 pages)

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Topics

Health Care

Construction costsFinancial managementGrant administrationHealth care facilitiesHealth care servicesInteragency relationsLoansRural economic developmentRural healthConstruction