Posted on May 14, 2015
VA accused of improperly spending $6 billion annually. Given this and other recent stories, is the VA beyond reform?
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The Department of Veterans Affairs has been spending at least $6 billion a year in violation of federal contracting rules to pay for medical care and supplies, wasting taxpayer money and putting veterans at risk, according to an internal memo written by the agency’s senior official for procurement.
In a 35-page document addressed to VA Secretary Robert McDonald, the official accuses other agency leaders of “gross mismanagement” and making a “mockery” of federal acquisition laws that require competitive bidding and proper contracts.
Jan R. Frye, deputy assistant secretary for acquisition and logistics, describes a culture of “lawlessness and chaos” at the Veterans Health Administration, the massive health-care system for 8.7 million veterans.
“Doors are swung wide open for fraud, waste and abuse,” he writes in the March memo, which was obtained by The Washington Post. He adds, “I can state without reservation that VA has and continues to waste millions of dollars by paying excessive prices for goods and services due to breaches of Federal laws.”
Frye describes in detail a series of practices that he says run afoul of federal rules, including the widespread use of purchase cards, which are usually meant as a convenience for minor purchases of up to $3,000, to buy billions of dollars worth of medical supplies without contracts. In one example, he says that up to $1.2 billion in prosthetics were bought using purchase cards without contracts during an 18-month period that ended last year.
He also explains how VA has failed to engage in competitive bidding or sign contracts with outside hospital and health-care providers that offer medical care for veterans that the agency cannot provide, such as specialized tests and surgeries and other procedures. Frye says VA has paid at least $5 billion in such fees, in violation of federal rules that the agency’s own general counsel has said since 2009 must be followed.
Read the full story here: http://www.washingtonpost.com/politics/va-improperly-spent-6-billion-on-care-for-veterans-senior-agency-leader-says/2015/05/13/ab8f131c-f5be-11e4-b2f3-af5479e6bbdd_story.html?hpid=z7
In a 35-page document addressed to VA Secretary Robert McDonald, the official accuses other agency leaders of “gross mismanagement” and making a “mockery” of federal acquisition laws that require competitive bidding and proper contracts.
Jan R. Frye, deputy assistant secretary for acquisition and logistics, describes a culture of “lawlessness and chaos” at the Veterans Health Administration, the massive health-care system for 8.7 million veterans.
“Doors are swung wide open for fraud, waste and abuse,” he writes in the March memo, which was obtained by The Washington Post. He adds, “I can state without reservation that VA has and continues to waste millions of dollars by paying excessive prices for goods and services due to breaches of Federal laws.”
Frye describes in detail a series of practices that he says run afoul of federal rules, including the widespread use of purchase cards, which are usually meant as a convenience for minor purchases of up to $3,000, to buy billions of dollars worth of medical supplies without contracts. In one example, he says that up to $1.2 billion in prosthetics were bought using purchase cards without contracts during an 18-month period that ended last year.
He also explains how VA has failed to engage in competitive bidding or sign contracts with outside hospital and health-care providers that offer medical care for veterans that the agency cannot provide, such as specialized tests and surgeries and other procedures. Frye says VA has paid at least $5 billion in such fees, in violation of federal rules that the agency’s own general counsel has said since 2009 must be followed.
Read the full story here: http://www.washingtonpost.com/politics/va-improperly-spent-6-billion-on-care-for-veterans-senior-agency-leader-says/2015/05/13/ab8f131c-f5be-11e4-b2f3-af5479e6bbdd_story.html?hpid=z7
Department of Veterans Affairs (VA)
Fraud
Ethics
Edited >1 y ago
Posted >1 y ago
Responses: 17
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The VA is a reflection the culture (how slow, corrupt, and inefficient) the government. I saw a video on FB once of a VA employee talking down to a Vietnam Vet about why he wasn't going to receive the meds that he needed. I was utterly appalled by this woman. Disrespect, and arrogant. The culture at the VA is what needs to be fixed, but we all know that will not happen, not even with the change in the highest levels of senior leadership. It's gotta take place within EACH VA hospital with each individual head (administration) and probably most importantly, start with Phoenix! Throwing more money at the problem doesn't solve the problem, it perpetuates it b/c administrators do not know how to budget effectively! But hey, what does the average Joe know, right?
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SP5 Tony Lobello
I believe you make a very valid point. The culture must change, however, in some locations, the attitude is very good, some good, some horrible. Phoenix is probably one of the best examples of horrible. And being held accountable, in instances, must include criminal prosecution. It would in the Military and in other civilian places of employment.
I must add that, with the exceptions of 5 weeks or longer wait for appointments, I have had some excellent, competent care at Audie Murphy VA Hospital and South Texas Veterans Health Care System. With minor discrepancies the providers have been very attentive, professional, almost overly cautious and with a very caring attitude. The waits for appointments, at times, cannot be helped, and I can overlook. The care and attitude is a different story. Somehow the Secretary must differentiate and reward and punish accordingly. But, as SGT Hall says, what does the average Joe know, right?
I must add that, with the exceptions of 5 weeks or longer wait for appointments, I have had some excellent, competent care at Audie Murphy VA Hospital and South Texas Veterans Health Care System. With minor discrepancies the providers have been very attentive, professional, almost overly cautious and with a very caring attitude. The waits for appointments, at times, cannot be helped, and I can overlook. The care and attitude is a different story. Somehow the Secretary must differentiate and reward and punish accordingly. But, as SGT Hall says, what does the average Joe know, right?
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The government tends to do a pretty crappy job at anything other than collecting money and that it does really well.
A "government provided service" tends to be inefficient.
A "government monopoly provided service" tends to be REALLY inefficient.
I have absolutely no doubt that private enterprise could provide 100% of the services that the VA provides for substantially less than the VA costs AND that private enterprise could still make a tidy profit out of providing those services.
However the political fallout from "getting rid of the VA" would mean almost certain electoral defeat - so you aren't going to see it happen.
A "government provided service" tends to be inefficient.
A "government monopoly provided service" tends to be REALLY inefficient.
I have absolutely no doubt that private enterprise could provide 100% of the services that the VA provides for substantially less than the VA costs AND that private enterprise could still make a tidy profit out of providing those services.
However the political fallout from "getting rid of the VA" would mean almost certain electoral defeat - so you aren't going to see it happen.
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Government Bureaucracies are not incentivized toward good performance. Systemically there is no reward for high achievement. In fact, agencies that do great and spend less money get less money next year. All salaries and jobs are protected. When this happens employees tend toward minimal effort, it's kind of natural. Minimal effort causes the system to slide into failure.
Competition in the private marketplace forces good performance and incentivizes achievement to varying degrees, the bigger the company the more bureaucratic it becomes.
The sole exception to this rule is combat. Combat keeps an organization honest with a lethal threat. The more exposed to combat the governmental organization the more efficient. Hence the efficiency and performance of the Corps, followed by the Navy, followed by the Army and the then Air Force, then the DOD etc...
Competition in the private marketplace forces good performance and incentivizes achievement to varying degrees, the bigger the company the more bureaucratic it becomes.
The sole exception to this rule is combat. Combat keeps an organization honest with a lethal threat. The more exposed to combat the governmental organization the more efficient. Hence the efficiency and performance of the Corps, followed by the Navy, followed by the Army and the then Air Force, then the DOD etc...
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MCPO Tom Miller
They do get many bonuses every year for performances. If you do the minimum required and are in the click you are in and ready for the next promotion. If you Excell and are viewed as a trouble maker in making other employees look bad because you work to hard, you aren't accepted among your peers or managers. All promotional boards have union representatives to prevent advancement and promote their choice. I'm
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