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STUDY: VA CARE COSTS 33% MORE THAN PRIVATE SECTOR CARE
Veterans' Advocate Jim Strickland looks at study by Dr. William
Weeks of the Dartmouth Institute for Health Policy and Clinical
Practice.
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Veterans' Advocate Jim Strickland
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by Jim Strickland
I recently received this email:
Dear Jim,
My colleagues and I have published an article I believe you and
your readers will find interesting. In summary, the study we
conducted shows that there is plenty of room for improvement in VA
care, particularly as far as containing costs goes.
Our research showed that, overall, VA care costs 33% more than if
it were purchased in the private sector; inpatient care provided
at the VA costs 56% more than comparable private sector care.
While we believe that veterans continue to receive high quality
preventive health care, it is apparent that VA could do better by
outsourcing inpatient services (particularly surgical care) to
high performance private sector hospitals for three reasons:
1. costs of care would decline
2. risk-adjusted mortality rates for a number of surgical
procedures are higher within the VA than in the private sector and
3. despite recent passage of the Health Care Personnel Enhancement
Act, the VA does not offer proceduralists comparable salaries, and
is unlikely to in the future.
William B Weeks, MD, MBA
Office of Professional Education and Outreach
The Dartmouth Institute for Health Policy and Clinical Practice
35 Centerra Parkway, Room 209
Lebanon, NH 03766
My thanks to Dr. Weeks and his colleagues for delivering this
important data (recently published in the Journal of Health Care
Finance) directly to
the
readers of VA Watchdog dot Org.
I was somewhat surprised to see the conclusions you draw. I'm one
who has always considered older studies that show VA far and away as
being a leader of extremely cost effective care as well as having
superior outcomes in most studied disciplines.
It's apparent that all that isn't quite true in today's world. Your
points are well taken. When I stand back and consider, for example,
the cumbersome and top heavy administrative burden at a VA medical
center, it rivals anything in the civilian sector. We're all quick
with criticism when discussing the insurance companies and how many
finance staff a civilian hospital must employ but we often forget
how loaded down with clerical and administrative types our VA
facilities are.
I know that many physicians, nurses and other health care providers
who work for VA don't practice much bedside medicine. The majority
of their time is spent in administrative duties sorting through
massive and often incomprehensible regulations. All that adds to the
high costs of running that business. To pay a physician to do
administrative work simply doesn't add up.
Beyond that, there are often significant scheduling issues when it
comes to major procedures with cancellations and rescheduling being
the norm at some centers.
It makes sense that costs could be dramatically lower and veterans
would be better served were many of the major procedures fee based
out into the veteran's own community when possible. It makes little
sense that the veteran may have to travel hundreds of miles to a VA
facility for heart surgery if a local civilian center that has
excellent outcomes could provide the service. If the local center
does more of those surgeries than the VA center, it's more likely
than not that total costs would be lower and outcomes will also be
better.

Many years ago I was a staunch supporter of continuing the model of
the VA Medical Center as the best way to go for veterans. Today, I'm
not so sure. One thought that helped me begin to consider other
options was how we address veterans educational opportunities as
compared to health care services.
After WWII had ended and Congress was making significant decisions
about increasing benefits to veterans, there were 3 major items
address. There were housing, education and health care.
Housing was to remain largely in the civilian sector with veterans
able to use a government backed loan certificate that made getting a
loan easier for the returning GI.
Veterans could advance their education at any accredited college or
university or trade school they chose. The veteran was given money
under the GI Bill and then he or she paid the school directly.
Only health care was segmented off to provide a veteran-specific
solution. The Congress didn't build many wide tracts of veteran only
homes nor did they establish a system of veteran only colleges
across the country.
The popular thought seemed to be that veterans health needs were
different from the rest of our populace and that the VHA would be
best to manage that need. The massive system of VA health acre
facilities came to be and promptly failed. Most researchers as well
as most veterans would agree that during the 1960's through the
period to about the late 1980's, VA health care had a deserved
reputation as one of the worst systems imaginable.
Most of us did all we could to avoid VA care at any cost.
Throughout the 1990's to today the VHA system has made great strides
in performance improvement, customer service and the tracking of
high quality outcomes. In spite of some shortcomings, most of us who
use the VA system give it very high marks.
However, Dr. Weeks' research indicates that all isn't as it would
seem at first glance.
Now that this data is available, Congress and the VHA should begin
to consider alternatives based on this most current research.
I suggest that a good place to start would be to remove
administrative burdens from health care providers and put them back
on the front lines to do what they were trained to do...take care of
patients.
From there, the possibilities are limitless. An overall reduction in
the huge number of administrative and clerical staff would seem a
logical next step. It's no secret that the VHA is locked in a
stranglehold by unionized workers who add very little to
productivity and a great deal to the overall costs.
As our country weighs decisions about providing changes in health
care for all its citizens, the time has come to assess just what we
want our future VHA to look like.
You may read Dr. Weeks' article here ... (Click
for viewing or download. Note: There is a second
study in this document which I will be addressing in a future
article.)
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Editor's note from Larry Scott, VA Watchdog dot Org ...
In the interest of full disclosure, Dr. William Weeks has
become a controversial figure in the last few months.
Weeks
was also employed by the VA at White River Junction, VT and
had sued the VA because he claimed he was denied a promotion.
Also, Weeks was indicted for conflict of interest regarding
research contracts between the VA and Dartmouth ... although
there is some confusion about the timing of these events.
Full
information with backlinks is here ...
http://www.vawatchdog.org/09/nf09/nfmay09/nf051009-1.htm
While Weeks
has his detractors, I have received many emails from veterans
supporting Weeks and his work ... and claiming that the VA is
retaliating for Weeks' research that you read about here
today. |
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TOPICS: veterans,
veterans' benefits, VA, Department of Veterans' Affairs, Jim
Strickland, Veterans' Advocate, Dr. William Weeks |