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GAO-06-124R 1 (2005-11-30)

handle is hein.gao/gaocrptasei0001 and id is 1 raw text is: SpGAO Accountability * Integrity * Reliability United States Government Accountability Office Washington, DC 20548 November 30, 2005 The Honorable Lane Evans Ranking Democratic Member Committee on Veterans' Affairs House of Representatives Subject: Purpose Statute Violation: Veterans Affairs Improperly Funded Certain Cost Comparison Studies with VHA Appropriations Dear Mr. Evans: The Department of Veterans Affairs (VA) provides health care to about 4.7 million veterans primarily through its medical facilities-which include hospitals, nursing homes, outpatient clinics, and other health care facilities-and by contracting for care with other healthcare providers. To lower costs, increase access, and improve the quality of care provided to eligible veterans, VA evaluates the efficiency of its medical facilities, which includes performing studies to determine whether increased savings and efficiencies can be obtained from outsourcing certain segments of its operations. We have previously reported' that VA would benefit from examining certain aspects of its operations, including its medical and laundry facilities, to determine if operational efficiencies could be achieved through consolidations, competitive sourcing, or both. While VA has the authority to conduct cost comparison studies and, when beneficial, to enter into contracts with commercial providers, VA may only finance cost comparison studies with funds that are legally available for this purpose. Under a provision in Title 38 of the U.S. Code,2 VA is prohibited by law from using any one of its Veterans Health Administration (VHA) appropriations for medical care, medical and prosthetic research, and medical administration and miscellaneous operating 'GAO, Veterans'Affairs: Progress and Challenges in Transforming Health Care, GAO/T-HEHS-99- 109 (Washington, D.C.: Apr. 15, 1999); and GAO, VA Laundry Service: Consolidations and Competitive Sourcing Could Save Millions, GAO-01-61 (Washington, D.C.: Nov. 30, 2000). 2 The permanent law, which was enacted in fiscal year 1982 and is now codified at 38 U.S.C. § 81 10(a)(5), states: Notwithstanding any other provision of this title or of any other law, funds appropriated for the Department under the appropriation accounts for medical care, medical and prosthetic research, and medical administration and miscellaneous operating expenses may not be used for, and no employee compensated from such funds may carry out any activity in connection with, the conduct of any study comparing the cost of the provision by private contractors with the cost of the provision by the Department of commercial or industrial products and services for the Veterans Health Administration unless such funds have been specifically appropriated for that purpose. GAO-06-124R VA Violated Purpose Statute

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