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HRD-85-69 1 (1985-06-13)

handle is hein.gao/gaobabnsi0001 and id is 1 raw text is: {ic'Q, HUMAN IKrQURtE DIVIGII0 HLLEASEL RESTRICTED - Not to be released outside the General UNITD _SATJI @fJS~t on the basis of spocific noeguval WASHINGTON, D.C. 20548 t 1273V ~~ JUNE 13.,1985 B-219055 The Honorable Jake Garn, Chairman Subcommittee on HUD-Independent Agencies Committee on Appropriations United States Senate 127395 Dear Mr. Chairman: Subject: VA's Justification for the Number of Beds Planned for the Philadelphia Hospital and Nursing Home (GAO/HRD-85-69) At your request, we reviewed the Veterans Administration's (VA's) rationale and basis for determining that it needed a 538-bed hospital and 240-bed nursing home as part of its pro- posed modernization of the Philadelphia VA medical center. As discussed with your office, we concentrated our attention on --evaluating VA's 1981 and 1982 adjustments to the results of its computer model (the principal means by which VA projects its future bed requirements) and --determining whether VA adequately considered local needs and resources and alternatives to new construction for the proposed nursing home. We believe that VA did not adequately justify the changes it made to the computer model's results when it established its 1990 hospital bed requirement. Consequently, the hospital's size, which served as the requirement for both the conceptual design and preliminary planning contracts that VA awarded, appears to have been overstated. The proposed 240-bed nursing home appears to be needed. VA planners followed VA central office guidance and adequately con- sidered local needs and resources as well as alternatives to new construction. The detailed results of our review are in enclosure I. It provides information on how VA planners estimated the bed re- quirements, their rationale for making adjustments to model results, and our analysis of their adjustments. (401951) q J-

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