VA Health Care: Travis Hospital Construction Project Is Not Justified
HEHS-96-198
Published: Sep 03, 1996. Publicly Released: Sep 03, 1996.
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Highlights
Pursuant to a congressional request, GAO provided information on the Department of Veterans Affairs' (VA) planned construction of an outpatient clinic and additional bed space at the David Grant Medical Center at Travis Air Force Base, focusing on whether: (1) the project could be adequately justified; and (2) there are cost-effective alternatives to planned hospital construction.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should deny the VA request for funds to construct additional hospital beds at Travis Air Force Base, given the availability of cost-effective alternatives to meet the health care needs of veterans in NCHCS. |
Closed – Implemented
|
On September 20, 1996, Congress prohibited VA from using funds appropriated for 15 months, so that Congress and VA could more fully consider GAO's report. In January 1997, VA contracted with Price Waterhouse, The Lewin Group, and Applied Management Engineering which, in a July 1997 report, reaffirmed GAO's conclusion that a new hospital is not justified and recommended that VA use an array of in-house and contractual arrangements, as GAO suggested. VA abandoned its plan to build the Travis hospital in September 1997. This saved $130 million of construction funds, in that VA had spent $9 million on design work and Congress, at VA's request, reprogrammed $71 million to implement alternatives. |
| Congress may wish to consider directing VA to spend only part of existing appropriated funds to construct a smaller outpatient clinic designed to provide considerably fewer than 85,000 visits a year. |
Closed – Implemented
|
When VA abandoned its plan to build Travis hospital in September 1997, it submitted, and Congress approved, a request to reprogram $71 million to implement lower-cost alternatives, including a smaller outpatient clinic at Travis AFB. |
| Because VA does not currently have legislative authority to contract for routine hospital care, it cannot take full advantage of the excess hospital capacity in northern California to meet the hospital care needs of veterans closer to where they live. Therefore, if proposed legislation to expand VA contracting authority is not enacted, Congress may want to consider authorizing VA to conduct a demonstration project in northern California to assess the benefits and costs of VA purchasing care for veterans with urgent and nonemergency conditions from community providers. |
Closed – Not Implemented
|
With Public Law 104-262 (October 9, 1996), the Congress expanded VA's contracting authority to allow contracting for routine hospital care; no demonstration is necessary. |
| Congress could direct VA to delay expenditure of the remaining appropriated funds for the Travis facility until the VA ongoing network study is completed. |
Closed – Implemented
|
With Public Law 104-204 (September 26, 1996), the Congress prohibited releasing funds for the Travis hospital prior to January 1, 1998, unless the Congress specifically releases such funds. Conference Report 104-812, accompanying the FY 1997 VA appropriation bill (H.R. 3666) directed VA to make a report to the Congress with recommendations on how to best serve the veterans in northern California--the Travis area. As previously discussed, a consultant's report has been issued on this issue; it concluded that a Travis hospital is not justified and recommended an array of in-house and contract arrangements to meet veterans' needs. |
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