Department of Veterans Affairs Secretary Anthony Principi Announces ‘Major’ Restructuring Plan
As expected, Department of Veterans Affairs Secretary Anthony Principi on Friday unveiled a "major revamping" of the VA health care system that will include the construction of two hospitals and 156 outpatient clinics, as well as the closing of two hospitals over the next eight years, the Washington Post reports. The changes, expected to cost more than $6 billion, come as VA shifts services to areas with growing veteran populations in the South and West. The new hospitals will be built in Nevada and Florida, while facilities in Pennsylvania, Ohio and Mississippi will close (Lee, Washington Post, 5/8). The VA restructuring plan calls for four new spinal cord centers, two rehabilitation centers for the blind and increased services for mental health patients (Hanson, Houston Chronicle, 5/10). VA officials in March recommended to the Senate Veterans' Affairs Committee that the department close or downsize several hospitals. The recommendations came from a report conducted by the Capital Asset Realignment for Enhanced Services Commission. The new outpatient clinics will be built in 33 states, while eight smaller hospitals will lose inpatient beds. VA expects the plan will cut the cost of maintaining vacant space from $3.4 billion now to $750 million by 2022. According to a 1999 General Accounting Office report, VA spends as much as $1 million per day to maintain vacant and underused facilities. While VA will continue to look for ways to cut costs, the department will not eliminate services at any other facilities before building replacement services in those areas, Principi has said. Congress will have 60 days to consider the new plan (California Healthline, 5/7).
Commenting on the proposed changes, Principi said VA's "physical infrastructure has not kept pace," adding, "I think, generally speaking, everyone realizes that the future of the VA is at stake." Rep. James Walsh (R-N.Y.), chair of the House Appropriations Subcommittee on Veterans Affairs and Housing and Urban Development, and Independent Agencies, said the plan "will strengthen our veteran health care network nationwide, especially in rural areas." He added, "While we may take issue with specific recommendations listed in the plan, overall it is an important step forward for the VA" (Washington Post, 5/8). Rep. Ellen Tauscher (D-Calif.), whose district includes a nursing home slated to close under the VA plan, swiftly denounced the proposed action as "completely an abomination," and suggested that VA might have difficulty receiving congressional approval and funding for the plan. Tauscher said, "They can't provide any new services or facilities, because the president has cut the veterans' budget every year. They don't have a bloody idea what they're talking about" (Hallissy, San Francisco Chronicle, 5/8). NPR's "All Things Considered" on Friday reported on the announced changes. The segment includes comments from Principi; Everett Alvarez, chair of the CARES Commission; and John Williams, director of veterans' services for the Erie County Department of Veterans Affairs (Shapiro, "All Things Considered," NPR, 5/7). The complete segment is available online in RealPlayer.
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