DOCUMENT RESUHE 00511 - A1051915 [Veterans Administration Should Delay Hospital Construction PrLjects until GAO Completes Review]. B-133044; RD-77-79. April 4, 1977. 2 pp. Raport to lax Cleland, Administrator, Veterans Administration; by Gregory J. Abart, Director, Human Resources Div. Issue Area: Health Programs (1200); Health Programs: Health Facilities (1203). Contact: Human Resource Div. Budget Function: Veterans Benefits and Services: Hospital and Medical Care for Veterans (703), Congressional Relevance: House Committee on Veterans' Affairs; Senate Committee on Veterans' Affairs. The methodology the Veterans Administration (VA) used to determire the bed sizes of the eight hospitals the VA Flans tc build over the next several years will be examined as part of an evaluation of the process the VA uses to determine the bed size of new and replacement hospitals. The computer model to be used in the review is similar to the one used in a review of the need for a new naval hospital in San Diego, California. As a result o this review, the Departsent of Defense is now genDaily required to use this model in determining hospital s5;e. Findings/Conclisions: Preliminary analysis of the bed requirements at the Richmond, Virginia, and Bay ines, FloritLa, facilities raises questions concerning whether the number of acute care beds planned for these two facilities is appropriate, Permittinq design work to proceed on the existing architect-engineering contract would be premature and costly, as would the award of any new contracts to initiate design work. Recommendations: To avoid incurring unnecessary costs, the VA Administrator should delay design work on the existing contract for the Richmond facility and delay awarding any additional contracts for other hospitals until the reviews at Bay Pies and Richmond are completed. (RS) ur% UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C 20548 HUMAN RSOURCG APR 4 1977 B-133044 The Honorable Max Cleland Administrator of Veerans Affairs Veterans Adminittration Dear Mr. Cleland: As you aiy know, we are making a comprehensive evaluation of the process the Veterans Administratioi (VA) uses to determine the bed size of new and replacement VA hospitals. As part o? this review, we plan to examine the methodology VA used to determine the bed sizes of the eight hospitals VA plans on building over the next few years. The planned construction of these hospitals was announced in May 1976. The computer model we plan to use in this review is similar to the one used inour review of the need for a new Naval hospital in San Diego, Califcrnia.l A r.port swas issued to the Congress on this matter inApril 1916. On the basis of this review the Department of Defense is now generally required to use our model in deternining hospital size. The model we will use and our review approach will, of course, be modified for use in VA facilities. We understand that a contract has recently been awarded for architect-engineering (A&E) services for the Richmond, Virginia, hospital and that A&E contracts will be awarded in the next two weeks for the Bay Pines, Florida, and Martinsburg, West Vir-ginia hospitals. We have done some preliminary analysis of the bed requirements at the Richmond and Bay Pines facilities and made a site visit to Bay Pines. Our analysis to date raises serious questions as to l"Policy Changes and More Realistic Planning Can Reduce Size of New San Diego Naval Hospital" (MWD-76-lll, April 1976). HRD-77-79 B-133044 whether the nlanned number of acute care bed& for these two tacilitie; isappr. riate. Although our analysis i; not complete, we believe that permitting design work to proceed on the existing A&E contract or awarding any new A&E contracts to initiate design work would be premature and may prove to be very costly to the Government if signif- icant changes are subsequently deemed necessary. To avoid incurring these unnecessary costs, we are recommending that you delay (1)design work on the existing A&E contract for Richmond and (2)awarding any additional contracts for design or construction for all other hospitals until we complete our review at Bay Pine: and Richmond. We anticipate that our wor,; at these two hospit;!e will be completed ' 8e to 10 weeks. During the review, we will work closely with VA officials to keep them abreast of our progress and to solicit any suggestionz or concerns VA may want to express regarding our review. We would appreciate being advised of any actions taken or planned on the matters disclosed n this report. As you know, section 236 of the Legislative Reorganization Act of 1970 requires the head of a Federal agency to submit a written statement on actions taken on our recommendations to tie Houase Committee on Government Operations nd Senate Committee on Governmental Affairs not later chan 60 days after the date of the report .nd to the House and Senate Committees on Appropriations wth the agency's first request for appropriations made more than 60 days after the date of the report. We are sending copies of this report to the Chairmen of the House and Senate Committees on Appropriations, House Committee on Government Operations, Senate Committee on Governmental Affairs, and House and Senate Committees on Veterans' Affairs; and to the Director, Office of Management and Budget. Sincerely yours, regooy J. hart Dire or -2-
Veterans Administration Should Delay Hospital Construction Projects until GAO Completes Review
Published by the Government Accountability Office on 1977-04-04.
Below is a raw (and likely hideous) rendition of the original report. (PDF)