Today's Article
Such failures may hurt
our chances of
ensuring that our vets
get the patient care
and veterans' benefits
they so clearly need
and deserve.
our chances of
ensuring that our vets
get the patient care
and veterans' benefits
they so clearly need
and deserve.
The American Spark
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Poor VA Cost Projections Failing Veterans
By Cliff Montgomery - Jan. 26th, 2009
A January 2009 Government Accountability Office (GAO) study reveals that the Veterans Affairs Office is
failing to provide Congress and the American people with adequate budget projections. Such carelessness
may hurt our chances of ensuring that our veterans get the patient care and veterans' benefits they so clearly
need and deserve.
We provide the GAO's essential findings below:
"In fiscal year 2007, the Department of Veterans Affairs (VA) spent about $4.1 billion on long-term care for
veterans. VA provides—through VA or other providers—[both] institutional care in nursing homes and non-
institutional care in veterans’ homes or the community.
"In response to a statute, VA published in 2007 a long-term care strategic plan through fiscal year 2013."
"In its 2007 long-term care strategic plan, VA reported planned increases for some long-term care workload,
but the workload information VA provided for both nursing home and non-institutional care was incomplete.
"With respect to nursing home care, VA reported plans to increase workload for certain veterans for whom VA
is required to provide such care. However, VA did not report its nursing home workload plans for most veterans
VA currently serves—veterans who receive such care from VA on a discretionary basis and who accounted for
over three-fourths of VA’s nursing home workload in fiscal year 2007.
"Although not reported in its strategic plan, VA’s intention is to keep its total nursing home workload stable.
Doing so while increasing workload for veterans [which] VA is required to serve would reduce care provided on
a discretionary basis.
"For non-institutional care, VA reported plans to increase workload to close gaps in services—previously
identified by GAO—for enrolled veterans, for whom those services are to be available. But VA’s plan did not
report the magnitude of this planned increase—167 percent between fiscal years 2007 and 2013—or VA’s
time frame for achieving this planned increase. Currently, VA is developing its next long-term care strategic
plan.
"In its fiscal year 2009 budget justification, VA estimated that it will increase its long-term care spending over
its fiscal year 2008 level, but this estimate is based on cost assumptions and a workload projection that appear
unrealistic.
"VA estimated that spending for both nursing home and non-institutional care will increase in fiscal year 2009
by about $108 million and $165 million, respectively.
"However, VA may have underestimated its nursing home spending because it assumed nursing home costs
would increase about 2.5 percent, an amount that appears unrealistically low compared to VA’s recent
experience and other indicators.
"For non-institutional care, VA proposed a spending increase in order to partially reduce gaps in services.
However, VA’s estimated non-institutional spending for fiscal year 2009 appears to be unreliable, because it is
based on a cost assumption that appears unrealistically low and a workload projection that appears
unrealistically high, given recent VA experience. The net effect of these two factors on VA’s fiscal year 2009
non-institutional spending estimate is unknown.
"VA’s fiscal year 2009 budget justification did not explain the rationale behind its nursing home and non-
institutional cost assumptions, or its plans for how it will increase non-institutional workload.
"Because the workload information reported in VA’s long-term care strategic plan is incomplete, the plan is of
limited usefulness to Congress and stakeholders for determining VA’s strategic direction, the extent to which
VA’s priorities are consistent with congressional priorities, and the level of resources VA may need to achieve
its strategic plan goals.
"In addition, in its fiscal year 2009 budget justification, VA’s use, without explanation, of cost assumptions and
a workload projection that appear to be unrealistic raises questions about both the reliability of VA’s spending
estimates and the extent to which VA is closing gaps in non-institutional long-term care services."
Like what you're reading so far? Then why not order a full year (52 issues) of the The American Spark e-
newsletter for only $15? A major article covering an story not being told in the Corporate Press will be
delivered to your email every Monday morning for a full year, for less than 30 cents an issue. Order Now!
By Cliff Montgomery - Jan. 26th, 2009
A January 2009 Government Accountability Office (GAO) study reveals that the Veterans Affairs Office is
failing to provide Congress and the American people with adequate budget projections. Such carelessness
may hurt our chances of ensuring that our veterans get the patient care and veterans' benefits they so clearly
need and deserve.
We provide the GAO's essential findings below:
"In fiscal year 2007, the Department of Veterans Affairs (VA) spent about $4.1 billion on long-term care for
veterans. VA provides—through VA or other providers—[both] institutional care in nursing homes and non-
institutional care in veterans’ homes or the community.
"In response to a statute, VA published in 2007 a long-term care strategic plan through fiscal year 2013."
"In its 2007 long-term care strategic plan, VA reported planned increases for some long-term care workload,
but the workload information VA provided for both nursing home and non-institutional care was incomplete.
"With respect to nursing home care, VA reported plans to increase workload for certain veterans for whom VA
is required to provide such care. However, VA did not report its nursing home workload plans for most veterans
VA currently serves—veterans who receive such care from VA on a discretionary basis and who accounted for
over three-fourths of VA’s nursing home workload in fiscal year 2007.
"Although not reported in its strategic plan, VA’s intention is to keep its total nursing home workload stable.
Doing so while increasing workload for veterans [which] VA is required to serve would reduce care provided on
a discretionary basis.
"For non-institutional care, VA reported plans to increase workload to close gaps in services—previously
identified by GAO—for enrolled veterans, for whom those services are to be available. But VA’s plan did not
report the magnitude of this planned increase—167 percent between fiscal years 2007 and 2013—or VA’s
time frame for achieving this planned increase. Currently, VA is developing its next long-term care strategic
plan.
"In its fiscal year 2009 budget justification, VA estimated that it will increase its long-term care spending over
its fiscal year 2008 level, but this estimate is based on cost assumptions and a workload projection that appear
unrealistic.
"VA estimated that spending for both nursing home and non-institutional care will increase in fiscal year 2009
by about $108 million and $165 million, respectively.
"However, VA may have underestimated its nursing home spending because it assumed nursing home costs
would increase about 2.5 percent, an amount that appears unrealistically low compared to VA’s recent
experience and other indicators.
"For non-institutional care, VA proposed a spending increase in order to partially reduce gaps in services.
However, VA’s estimated non-institutional spending for fiscal year 2009 appears to be unreliable, because it is
based on a cost assumption that appears unrealistically low and a workload projection that appears
unrealistically high, given recent VA experience. The net effect of these two factors on VA’s fiscal year 2009
non-institutional spending estimate is unknown.
"VA’s fiscal year 2009 budget justification did not explain the rationale behind its nursing home and non-
institutional cost assumptions, or its plans for how it will increase non-institutional workload.
"Because the workload information reported in VA’s long-term care strategic plan is incomplete, the plan is of
limited usefulness to Congress and stakeholders for determining VA’s strategic direction, the extent to which
VA’s priorities are consistent with congressional priorities, and the level of resources VA may need to achieve
its strategic plan goals.
"In addition, in its fiscal year 2009 budget justification, VA’s use, without explanation, of cost assumptions and
a workload projection that appear to be unrealistic raises questions about both the reliability of VA’s spending
estimates and the extent to which VA is closing gaps in non-institutional long-term care services."
Like what you're reading so far? Then why not order a full year (52 issues) of the The American Spark e-
newsletter for only $15? A major article covering an story not being told in the Corporate Press will be
delivered to your email every Monday morning for a full year, for less than 30 cents an issue. Order Now!
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