We completed an evaluation of HUD’s management of its Workers’ Compensation Program (WCP).  Our primary objectives were to determine whether HUD’s contractor, Lifecare Management Partners (Lifecare) of Alexandria, VA, managed the program in accordance with its contract terms and identify opportunities to improve program policy and procedures.  We also wanted to determine the level of program noncompliance and potential fraud among HUD’s 371 former employees and WCP beneficiaries.  Lifecare has administered HUD’s WCP agency-wide since April 1997.

We concluded that Lifecare managed the program in accordance with its services contract.  We recommend that HUD modify Lifecare’s contract to add fraud detection steps similar to our testing of public records and to add a formal referral process to ensure the proper investigative agency receives the information when appropriate.