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HEHS-95-247R 1 (1995-09-12)

handle is hein.gao/gaobackxz0001 and id is 1 raw text is: GAO United States General Accounting Offlce Washington, D.C. 20548 Health, Education and Human Services Division B-265819 September 12, 1995 The Honorable Bob Stump Chairman, Committee on Veterans' Affairs House of Representatives Dear Mr. Chairman: The President proposed an increase in the Department of Veterans Affairs' (VA) health care funding of about $747 million in fiscal year 1996--to $17 billion--with subsequent reductions in funding of 2 percent per year over the following 4 years. By contrast, the budget resolution approved by the House of Representatives on May 18, 1995, would have frozen VA health care spending at fiscal year 1995 levels--$16.2 billion--for 7 years.' The Veterans Health Administration (VHA) assessed the potential impact of the House proposal in terms of budget shortfalls, equivalent medical center closings, and equivalent workload reductions. VHA's calculations indicated that VA would experience a budget shortfall of $747 million in 1996 and a cumulative shortfall of $23.8 billion by 2002. The VHA budget office estimated that the predicted shortfall would be equivalent to all of the following: closing 6 medical centers in 1996 and 41 by 2002, treating 67,000 fewer inpatients in 1996 and 1.8 million fewer by 2002, and providing 1.6 million fewer episodes of care in 1996 and at least 41 million fewer by 2002. The results of these assessments were cited by the Secretary of Veterans Affairs and others in a series of speeches and press releases. 'The Congress adopted the budget resolution on June 29, 1995 providing $16.2 billion annually for 7 years (H.R. Con. Res. 67, 104th Cong. 1st Sess. 1995). Subsequently, in August 1995, the House of Representatives approved a $16.8 billion appropriation for VA health care for fiscal year 1996. GAO/HEHS-95-247R Medical Care Budget Alternatives

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