VETERANS AFFAIRS DEPT.: SIGNS NEW NURSING HOME CONTRACTS
The Department of Veterans Affairs (VA) announced yesterdayThis is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
the selection of seven private corporations to provide contract
home care to veterans at VA expense. The VA NEWS SERVICE reports
that "[t]his is the first time that VA has negotiated this type
of contract, and it is believed to be one of the first of its
kind anywhere." The new contracts will provide veterans with
access to 1,101 nursing homes in 43 states; VA has individual
contracts in each of the seven states not covered by the new
multi-state contracts. VA Under Secretary for Health Kenneth
Kizer said, "With these awards, VA is developing corporate
partnerships with industry leaders that will substantially
improve access, ensure consistent quality, and provide more cost-
effective community nursing home care to veterans."
STATE OF AFFAIRS: The corporations that signed with the VA
are Beverly Health Care, Vencor, Sun Healthcare Group, Genesis
Health Ventures, Integrated Health Services, Unicare Health
Facilities/Park Associates and Harmony, Inc. All of the
companies are multi-state providers, with the exception of
Harmony, which has 20 facilities in California. The contracts
will last for one year, with two renewal years. Each company
will provide five levels of nursing home care, including:
rehabilitation, clinically complex, special, standard skilled,
and reduced physical functioning. Veterans are guaranteed
placement within 48 hours for any of these services.
THE PRICE CLUB: VA was able to "secure a state-specific
pricing structure that should achieve substantial cost savings
over the life of the contract." VA anticipates "markedly
reducing" its administrative costs because it will consolidate
most of the veterans under seven contracts, as opposed to the
3,200 separate long-term care contracts it had maintained.
Currently, VA spends about $356 million annually on its community
nursing home program. Kizer said, "While we're very happy with
the millions of dollars we will save with this contract, we're
even more pleased about our ability to ensure more consistently
high-quality care as a result of this action" (VA NEWS SERVICE
release, 9/9).