-Caveat Lector-

Report: VA Wastes $1 Million a Day

By LARRY MARGASAK
.c The Associated Press

WASHINGTON (AP) - Stuck with old, decrepit hospitals and serving a declining
population, the Department of Veterans Affairs is wasting up to $1 million a
day on unneeded medical facilities, congressional investigators report.

The General Accounting Office report was highly critical of the VA's proposal
to fix the system, contending vested interests that might balk at closing
facilities would be given too much control.

Among these groups, the GAO said in a report obtained Wednesday, are medical
schools, unions, veterans' organizations and state veterans agencies. They
will be part of local committees that would, under current plans, choose
their own leadership rather than allowing the VA to run the process, the
investigators reported.

For instance, medical schools might be reluctant to change long-standing
business relationships with veterans hospitals, and unions could be reluctant
to support staffing reductions, said the report, obtained by The Associated
Press.

The GAO, Congress' investigative agency, suggested using full-time VA
planners or consultants with ``no vested interests in the geographic area''
to recommend changes in facilities, in consultation with the other groups.

The VA health care system's past experience suggests that the system now
contemplated ``could result in a protracted decision-making process that
continues the expenditure of scarce resources on unneeded buildings'' -
already totaling up to $1 million a day, said the report, by Stephen P.
Backhus, the GAO's veterans' health care export.

Backhus' report said the interest groups involved in the restructuring ``may
have vested interests in maintaining the status quo.'' He added, ``In our
view, this arrangement could lead to conflict among the various stakeholders
sitting on the committees if they attempt to protect their interests at the
expense of the overall process.''

Veterans Affairs spokeswoman Laurie Trantner said in response, ``We recognize
that the current health care delivery costs money and there's a potential for
savings. We are working cooperatively with the (congressional) committees to
reach a solution that will benefit veterans.''

She said committees to be formed to help change the system ``will balance
local interests and national priorities that will serve local veterans'
needs.''

The report was prepared for Rep. Terry Everett, R-Ala., chairman of the House
Veterans Affairs subcommittee on oversight and investigations. He said the
agency must address ``findings that one in four veterans' health care
dollars'' is spent on operating and maintaining facilities that include
``empty old buildings and 5 million square feet of vacant space.''

He said experts have described the VA health care system as ``archaic,
decrepit, dysfunctional and inefficient.''

The backdrop for the wasted spending is a VA hospital system that dropped
from 49,000 patients a day in 1989 to 21,000 in 1998, with nearly half the
decline occurring in the past three years.

The use of VA hospitals is further expected to ``decline significantly over
the next 20 years,'' as the veteran population drops from the current 25
million to an estimated 16 million by 2020, said the report.

The GAO gave the VA credit for beginning, in 1995, to transform itself from a
hospital operator to a health care provider that relies on community-based
medical and residential facilities and outpatient services.

At the same time, the report said that over the next two decades, most VA
health care buildings will approach or pass their useful life expectancy.
More than 40 percent have already operated for more than 50 years, including
almost 200 built before 1900.

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