Posted on Jun 6, 2015
So where is the problem? Congress or the VA?
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VA to Congress: Cut spending or delay projects to finish Denver hospital
DENVER — The Veterans Affairs Department on Friday offered Congress two new ways to finish a budget-busting medical center under construction in suburban Denver: Broad spending cuts of almost 1 percent, or shifting funds from dozens of construction and maintenance projects planned in other states.
Mandatory benefits programs would not be cut. Paring 0.89 percent from other spending in the budget year that starts in October would produce the $625 million needed, the department said.
Veterans medical care nationwide would take the biggest hit, nearly $535 million, according to the agency's estimate.
The department didn't say how long the other projects would be delayed if Congress accepts the other option, shifting money from other construction and maintenance projects to the Denver hospital. The list includes as many as 44 construction projects in 24 states, plus up to 65 maintenance projects in about 16 states.
The VA had previously proposed finishing the Denver facility with money from the Veterans Choice program, designed to improve veterans' access to care. Congress rejected the idea.
Key lawmakers said they were reviewing the new proposals, and some had no immediate comment.
Steven Rylant, president of the United Veterans Committee of Colorado, said his group was encouraged by the new options. Rylant noted the new Denver-area hospital will serve veterans in Kansas, Montana, New Mexico, Utah and Wyoming as well as Colorado.
The hospital is expected to cost up to $1.73 billion, almost three times the estimate given last year. The VA has blamed problems in the design process, and at least two internal investigations are underway.
Angry members of Congress want the VA to fire those responsible for the overruns and are demanding significant changes in the way the agency handles major construction projects.
The half-finished medical center in the eastern suburb of Aurora will replace an old, cramped facility in Denver.
The VA first asked for another $830 million to finish but then said it could cut that to $625 million. About $55 million would be saved by indefinitely delaying a nursing home and post-traumatic stress disorder clinic planned on the campus. The VA has said it can divert another $150 million to the project by shuffling money in its current budget.
Unless Congress and the VA reach a deal, construction could stop in mid-June, when the current spending cap is reached. Contractor Kiewit-Turner has said a shutdown could add up to $200 million to the cost because of the expenses of winding down work, securing the site and then gearing back up again.
The chairmen of the House and Senate Veterans Affairs committees had no immediate comment on the VA proposal, nor did Colorado Republican Rep. Mike Coffman, whose district includes the new medical center.
Colorado's two senators, Democrat Michael Bennet and Republican Cory Gardner, said they were reviewing the plan. Rep. Ed Perlmutter, D-Colorado, said it appears to be a serious proposal. He urged VA and leaders of the GOP, who control both houses of Congress, to negotiate a deal.
This story has been corrected to show the proposed 0.89 percent spending cuts would affect much of the department, but not all of it.
http://www.stripes.com/news/veterans/va-to-congress-cut-spending-or-delay-projects-to-finish-denver-hospital-1.351006
DENVER — The Veterans Affairs Department on Friday offered Congress two new ways to finish a budget-busting medical center under construction in suburban Denver: Broad spending cuts of almost 1 percent, or shifting funds from dozens of construction and maintenance projects planned in other states.
Mandatory benefits programs would not be cut. Paring 0.89 percent from other spending in the budget year that starts in October would produce the $625 million needed, the department said.
Veterans medical care nationwide would take the biggest hit, nearly $535 million, according to the agency's estimate.
The department didn't say how long the other projects would be delayed if Congress accepts the other option, shifting money from other construction and maintenance projects to the Denver hospital. The list includes as many as 44 construction projects in 24 states, plus up to 65 maintenance projects in about 16 states.
The VA had previously proposed finishing the Denver facility with money from the Veterans Choice program, designed to improve veterans' access to care. Congress rejected the idea.
Key lawmakers said they were reviewing the new proposals, and some had no immediate comment.
Steven Rylant, president of the United Veterans Committee of Colorado, said his group was encouraged by the new options. Rylant noted the new Denver-area hospital will serve veterans in Kansas, Montana, New Mexico, Utah and Wyoming as well as Colorado.
The hospital is expected to cost up to $1.73 billion, almost three times the estimate given last year. The VA has blamed problems in the design process, and at least two internal investigations are underway.
Angry members of Congress want the VA to fire those responsible for the overruns and are demanding significant changes in the way the agency handles major construction projects.
The half-finished medical center in the eastern suburb of Aurora will replace an old, cramped facility in Denver.
The VA first asked for another $830 million to finish but then said it could cut that to $625 million. About $55 million would be saved by indefinitely delaying a nursing home and post-traumatic stress disorder clinic planned on the campus. The VA has said it can divert another $150 million to the project by shuffling money in its current budget.
Unless Congress and the VA reach a deal, construction could stop in mid-June, when the current spending cap is reached. Contractor Kiewit-Turner has said a shutdown could add up to $200 million to the cost because of the expenses of winding down work, securing the site and then gearing back up again.
The chairmen of the House and Senate Veterans Affairs committees had no immediate comment on the VA proposal, nor did Colorado Republican Rep. Mike Coffman, whose district includes the new medical center.
Colorado's two senators, Democrat Michael Bennet and Republican Cory Gardner, said they were reviewing the plan. Rep. Ed Perlmutter, D-Colorado, said it appears to be a serious proposal. He urged VA and leaders of the GOP, who control both houses of Congress, to negotiate a deal.
This story has been corrected to show the proposed 0.89 percent spending cuts would affect much of the department, but not all of it.
http://www.stripes.com/news/veterans/va-to-congress-cut-spending-or-delay-projects-to-finish-denver-hospital-1.351006
Department of Veterans Affairs (VA)
Health
Posted 9 y ago
Responses: 4
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The problem is two fold in my opinion. Primarily VA though. I recall when President Clinton and Vice President Gore stood on the lawn of the White House and held many town hall meetings touting the "National Performance Review." In these events, they held up (or stood in front of) thousands of pages and volumes of regulations, rules and policies that Congress and the White House Administration over the years have demanded to be implemented. The NPR was to do away with these regulations. Unfortunately, it failed to do so. Sure, there was the initial reduction of some regulations, but as the years passed, many more replaced those that were reduced. Somewhat like weight lost, you lose a few pounds and when you gain it back, you gain more than what you lost.
I said VA primarily, because they didn't do a "yeoman's" job of keeping up with all the intricacies of the volumes of procurement regulations. Not much different with the DOD in it's purchase of weapon systems or large procurements like aircraft or ships. Volumes of contract documents and specifications that could fill a room. One person isn't able to keep up with all the information. And unless you have a cohesive team, things fall through the cracks.
In 2007, VACO (VA Central Office-at the time I believe they still called themselves, VAHQ) knew in at least the office of 10N that the Denver facility would cost a billion dollars to build. That's why VA started looking at the HCCF model. When it started, the Healthcare Community Facility model was to have developers build an outpatient facility for VA and lease the facility to VA for a period of 10 or 20 years. At the end of the period VA could stay or move to different facilities if it needed to. The developer ended up with an Outpatient facility fully paid for by the US taxpayers and the government didn't own property that they would have to try to off load. How Denver evolved from a HCCF (I think VA dropped the "F" off the abbreviation) to a full scale medical center I don't know. But we now all know, the bureaucrats in VA really screwed the pooch on this one.
I said VA primarily, because they didn't do a "yeoman's" job of keeping up with all the intricacies of the volumes of procurement regulations. Not much different with the DOD in it's purchase of weapon systems or large procurements like aircraft or ships. Volumes of contract documents and specifications that could fill a room. One person isn't able to keep up with all the information. And unless you have a cohesive team, things fall through the cracks.
In 2007, VACO (VA Central Office-at the time I believe they still called themselves, VAHQ) knew in at least the office of 10N that the Denver facility would cost a billion dollars to build. That's why VA started looking at the HCCF model. When it started, the Healthcare Community Facility model was to have developers build an outpatient facility for VA and lease the facility to VA for a period of 10 or 20 years. At the end of the period VA could stay or move to different facilities if it needed to. The developer ended up with an Outpatient facility fully paid for by the US taxpayers and the government didn't own property that they would have to try to off load. How Denver evolved from a HCCF (I think VA dropped the "F" off the abbreviation) to a full scale medical center I don't know. But we now all know, the bureaucrats in VA really screwed the pooch on this one.
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