Dive Brief:
- The VA is threatening to start closing hospitals next month if Congress doesn't come up with a plan to address a $2.5 billion shortfall.
- Congressional leaders traveled to the Department of Veterans Affairs headquarters last Thursday to hear the agency's complaints firsthand.
- Agency staff says it is trying to manage an explosion in demand for healthcare despite a a $3-billion hole in its budget. The agency is putting pressure on Congress to come up with a plan before the August recess.
Dive Insight:
According to VA officials, the demand for care at VA hospitals is growing to a point where the VA has had to pull $2.5 billion from other accounts to pay for clinical salaries, medical equipment other operations. "If these program funds are not restored, VA will face shutting down hospital operations during August 2015," Deputy Secretary Sloan Gibson warned in a letter to lawmakers. Sloan has also said furloughs and hiring freezes are also on the table.
Just last summer, Congress gave the VA $15 billion to increase its medical staff and to roll out a new program called the Choice Card, which allows veterans to go to outside doctors. Since the program hasn't been widely successful, the VA is now asking for the flexibility to tap into that money to cover it's budget shortfall. Lawmakers have been hesitant to allow the VA to use those funds even though the VA says most of the money has not been spent.