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
Edited >1 y ago
Posted >1 y ago
Responses: 17
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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My answer has been and will be, the VA does not like to follow laws, regulations, and rules.
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I'm sure there are problems still within the system, but as a patient using VA medical care, I can honestly say it's the best care I have ever received. I'm not a believer in the overuse of drugs and they at least listen to me and find alternate forms of treatment that don't involve addictive medications that I can't take.
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The VA is a complete mess. Service Connected Veterans are subject to long waits for appointments and are not given any preference over non service connected veterans. Many just use other ways to recieve competent treatment. Some have Medicare with Tricare and rely upon those benefits and recieve care from private practice. After the spread of the death cases in Phoenix VA Hospitial, congress provided money for 6,000 more employees and a promise of a massive clean up of ineffective and poor employees and even authorized a law that enabled supervisors to get rid of dead beat employees from union protevtion. Today, only 1 ploys has been fired. He was fired during the probation period. Now we have not seen any improvement for services and have 6000 more featherbedders. We need to move VA care to private contractors who can be held to a higher standard under renewable contracts. Like everything else in our federal government it's filled with PC self serving no standards supervisors and employees.
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SP5 Tony Lobello
But did they actually hire the 6000 additional employees? Let me explain. If a clinic that was staffed by 10 nurses was allocated 4 more nurses they would have 14. However if the head of that clinic chose to remain at 10 nurses even though there were funds for the 14, at the end of the year there would be a surplus of the salaries allocated for the additional 4 nurses that were not hired. The surplus then could be used for bonuses. I fear that is what is happening at several places within the VA.
At a town hall telethon meeting last night Congressman Lamar Smith (R-TX) quoted the latest claims from the VA of wait times from 3.6 days for PCPs up to 6.4 days for specialist. Do you believe that?
I have seen the do nothing Patient Advocate promoted to Manager of Customer Care and the Patient Advocate that truly tried to help the veterans be criticized for being too close to the patients.
Tricare might be the best solution because it eliminate the need for more hospitals and other facilities which would significantly reduce the budget necessary to run the VA Health Care.
At a town hall telethon meeting last night Congressman Lamar Smith (R-TX) quoted the latest claims from the VA of wait times from 3.6 days for PCPs up to 6.4 days for specialist. Do you believe that?
I have seen the do nothing Patient Advocate promoted to Manager of Customer Care and the Patient Advocate that truly tried to help the veterans be criticized for being too close to the patients.
Tricare might be the best solution because it eliminate the need for more hospitals and other facilities which would significantly reduce the budget necessary to run the VA Health Care.
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Is this why the VA has decided to deny and not treat gulf war vets so they can make up money.Now if you appeal a claim the board goes through your files and cuts your benefits in half.
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An update to my original post.
Congress is "upset" about this. Does that mean that Congress will "do" something about it? Probably wouldn't hold my breath ...
http://www.washingtonpost.com/politics/angry-house-members-berate-va-over-6-billion-in-improper-spending/2015/05/14/b9553130-fa59-11e4-9030-b4732caefe81_story.html?hpid=z7
Congress is "upset" about this. Does that mean that Congress will "do" something about it? Probably wouldn't hold my breath ...
http://www.washingtonpost.com/politics/angry-house-members-berate-va-over-6-billion-in-improper-spending/2015/05/14/b9553130-fa59-11e4-9030-b4732caefe81_story.html?hpid=z7
House members berate VA over billions in alleged improper spending
Democrats and Republicans demand to know why officials did little to stop the health system from violating rules.
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PO1 Glenn Boucher
I think that's political speak for some other crap is getting ready to fly and they are looking to deflect to another "hot topic".
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GySgt Wayne A. Ekblad
Unfortunately PO1 Glenn Boucher, you are probably "dead-on" in your assessment.
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SP5 Tony Lobello
Congress always seeks votes. The VA, the Veterans requiring medical care, the Military and all the VSOs combined represent a respectable number of votes. Like it or not Congress desires to appeal to as many of us as they can; consequently they often speak out of both sides of their mouths. Hell, aren't we used to that?
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