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Testimony OF

JOHN C. BOLLINGER, DEPUTY EXECUTIVE DIRECTOR

PARALYZED VETERANS OF AMERICA

BEFORE THE

HOUSE COMMITTEE ON VETERANS’ AFFAIRS,

HEALTH SUBCOMMITTEE

CONCERNING

THE CURRENT STATE AND FUTURE 

CHALLENGES OF THE

VA HEALTH CARE SYSTEM

APRIL 3, 2001

 

Chairman Moran, Ranking Democratic Member Filner, members of the Subcommittee, the Paralyzed Veterans of America (PVA) is pleased to present our views on the current state and future challenges of the Department of Veterans Affairs’ (VA) health care system.  As we stated in our Annual Testimony, which we presented last month, the provision of health care to veterans is our primary mission.  To our members, the existence of a viable system that provides the highest quality of health care directed toward the special needs of veterans is a matter of life and death.  We could spend days and weeks discussing the current state, and the future challenges facing this system, but the long and the short of it can be summed up in a quote from a congressional report from 1951: that the VA health care system “represents an attempt on the part of Congress to partially discharge our obligation to the men and women who have offered their lives in defense of our country.” 

PVA members utilize VA health care at a higher percentage than any other veterans service organization.  All of PVA’s members are veterans with spinal cord injury or dysfunction.  Due to the complex nature of these disabilities PVA members must rely on a lifetime of specialized health care and continuing rehabilitation services. Fortunately for us, since World War II, the VA has developed an extensive network of spinal cord dysfunction care second to none.  Specialized services, such as spinal cord dysfunction care, are the core of the VA’s mission and responsibility to veterans.  VA’s specialized services are incomparable resources that often cannot be duplicated in the private sector.  

An independent study released last Spring produced by the widely recognized consulting firm Booz-Allen & Hamilton compared VA’s SCI services to SCI services funded by Medicare, Medicaid, Aetna, Kaiser, Alliance, Blue Cross/Blue Shield and the Swedish medical systems.  

The study found that the VA provided more comprehensive coverage for SCI than any other health care program.  It determined that the VA’s benefits met, or exceeded, those provided by each of the plans reviewed.  It concluded that VA’s services were uniquely organized and that no other health care provider was as involved in the full continuum of care for SCI patients. 

To provide this high-quality health care it is essential that a spinal cord injury center be operated in the venue of a tertiary medical center.  The clear advantage of the SCI system is that it incorporates the multi-disciplinary team approach of many medical specialties, from neurology to social work, from initial stabilization post injury to long-term care.  These are services that can only be found in the hospital setting, and only provided by highly trained and highly motivated health care professionals.  Likewise, for the VA to reap the full benefits of its restructuring efforts over the last number of years, and to realize its efforts to provide cutting-edge 21st century health care, it is essential that the integrity of the hub and spoke method be maintained, and strengthened.  This model relies upon the tertiary care facility serving as the hub, with outpatient clinics and other facilities that ease access into the system serving as the spokes.  Without the hub, the spokes will fail. 

The VA has undergone extraordinary change in recent years, marked primarily by a major shift from inpatient to outpatient services.  This change in the direction of care has been brought about by the need to cut costs.  It also has had the intended result, through the opening of hundreds of outpatient clinics, of bringing primary care services closer to the communities where veterans live.  This trend, the shifting of resources away from medical centers, will continue as the VA attempts to realign and, potentially, to close many medical centers.  This trend, absent coordinated planning, represents another major threat to the SCI system unless resource allocation remains in balance and continues to support the medical center approach to health care. 

VA Secretary Principi stated recently in an interview, in regards to the sentiment that it was time to close the VA system, that this “would be such a tragedy because I do believe that the VA is part of the safety net in this country for people who have few other options.  We are a leader in specialized programs, and without a robust health care system around them, they will collapse and die.”  PVA could not agree more.  It is clear, that PVA members cannot find the specialized care they need at a community-based outpatient clinic that provides only basic general primary care services.  We have discovered that some of these community-based clinics are not even wheelchair accessible.   These clinics may provide ice packs and aspirin, but they cannot provide the health care needed by PVA members – health care provided in specialized settings supported by tertiary care hospitals. 

A crucial component of maintaining and improving the VA’s ability to provide specialized services, is that the VA must retain its essential capacity to provide these services.  Congress recognized the importance of maintaining capacity with the passage of P.L. 104-262, the “Veterans Health Care Eligibility Reform Act of 1996,” which required the VA to maintain its SCI capacity by statute.  Even with this statutory mandate it has been an on-going struggle for us to see that VA Veterans Integrated Service Network (VISN) and local managers live up to the requirement to maintain SCI beds and staffing.  

Last year we were able to finally reach agreement with the VA on a template for the entire SCI system.  This template sets numbers for beds and staff at each SCI center.  This template can serve as a benchmark for maintaining capacity.  Although we are encouraged by this agreement, we are ever mindful that the numbers are only as good as the good faith required by local hospital managers and VISN directors to see that these beds are in place and properly staffed.  In addition, this agreement will only work with the direct supervision of top VA leadership and the oversight of this Subcommittee.  We look forward to working with you to see that the promises made to protect spinal cord medicine are kept. 

PVA members cannot find the quality services within the general community as well, either by contract or by any vouchering scheme that would send PVA members to places where specialized care services do not exist.  What could be looked at as a boon to some veterans strikes at the heart of the VA inpatient specialized services we rely upon.  This boon could very well be the disguised death knell that we so very much fear. 

The threat to the VA health care system represented by the push to voucher the VA health care system is ever-present.  PVA remains deeply opposed to these efforts.  Well-meaning attempts to address the problems faced by veterans who do not reside near VA facilities could very well have the practical effect of destroying the VA system.  We hope that this is not the purpose of those who support these vouchering efforts.  We need to find solutions for these veterans, but the solutions we find should not fundamentally subvert the system. 

PVA is troubled by legislation put forth in the last Congress that would have created a pilot program to shift medical services and veteran patients from the VA to the private sector.  The care afforded these veterans would have been paid for by the veteran’s own private or public insurance with the VA acting only as a secondary payer.  It is important to note that we are not opposed to contracting out medical services when there is a demonstrable lack or availability of certain services within the VA.  What we do oppose, and oppose strongly, are efforts that would turn the VA into an insurer of health care rather than a provider of health care.  These efforts would not only represent a major departure from the usual delivery of VA health care services, but would provide disparate treatment of veterans depending on whether or not they have private insurance, undermine the VA’s ability to maintain its specialized services programs by eroding the VA’s patient and resource base, and endanger the well-being of veteran patients. 

Efforts to voucher the VA would strike at the core of the structure of the VA health care system, the structure of the VA hospital serving as the hub, or locus, of inpatient services, and the outpatient clinics serving as the spokes of the wheel, feeding patients to that hub.  Proposals, such as those from the last Congress, do just the opposite.  They would attract veterans to the VA outpatient clinic, only to send them out of the VA system for their care.  Veteran patients would be lost to the system, undercutting the VA hospital’s patient base, its budget and resource requirement justification, and any potential benefit the veteran’s third party reimbursement could bring to the system if that care had been provided in a VA facility.  These proposals set a very dangerous precedent which, if allowed to expand, could endanger the viability of a VA facility maintaining its full range of specialized inpatient services for all other veterans in the area as those resources go elsewhere.  

Although the final version of a vouchering proposal in the last Congress included language calling for the inclusion of a certain percentage of veterans without private insurance, we have grave concerns over how such a mandate would be carried out.  Even with the inclusion of such language, these provisions would effectively allow only veterans who have the means to pay for their own health insurance to be referred from VA or VA contracted outpatient clinics to private sector facilities for inpatient care.  The vast majority of those without health insurance, potentially those with the most financial need, would still have to travel to the VA hospital to get their care.  By authorizing non-service connected care in private sector facilities, proposals such as those brought forward in the last Congress would create an entirely new eligibility category.  Veterans’ groups and Congress worked for years to reform the patchwork eligibility system then in place.  This would represent a step backward. 

Finally, vouchering proposals represent the abrogation of the VA’s, and the federal government’s, direct responsibility to discharge the obligation to provide health care to veterans.  The VA, in sending the patient to the private sector to use the veteran’s own health insurance, would be washing its hands of the veteran patient.  As a payer of only co-payments and deductibles, the VA would have very little recourse to monitor the quality of the care provided.  It would not have the responsibility to provide any follow up care or continuing treatment.  Even though the proposal forwarded in the last Congress contained language stating that the VA would coordinate care through the provision of case management, PVA believes that, lacking a formal contractual or regulatory relationship with the providing hospital or the private or public insurer, the VA would have no right or even incentive to monitor, evaluate or influence the care provided once that patient has been referred.  In addition, veterans would lose all recourse to the VA for the consequences of the care they receive once they are referred out of the system. 

Another challenge facing the VA system, the challenge of a crumbling infrastructure and a lack of investment in the system was recognized by this Committee, and acted upon by the House of Representatives.  For too many years, the VA has faced dwindling construction budgets.  This pattern is an explicit indication of poor stewardship over the medical system’s facility assets.  The VA must remain flexible in order to provide the highest quality of care to veterans and to protect the provision of specialized services, but a health care system that lacks safe structures, that has been allowed to “realign through neglect,” is a health care system in name only. 

It is easy to be lulled into believing that veterans are dying off and that there is no need for a VA health care system.  This is undoubtedly false.  It is true that we are facing, in a demographic sense, an increasingly graying population of veterans, but the simple fact remains that as long as we have a military we will continue to have veterans.  The VA must look to meeting the specialized health care needs of all veterans.  This is especially true in meeting the needs of elderly veterans, and why it is essential that the VA implement the long-term care provisions of the “Veterans Millenium Health Care and Benefits Act,” P.L. 106-117.  The VA can be a tremendous asset as we, as a Nation, begin to address the long-term care needs of all of our citizens. 

Earlier, I quoted from a congressional report from 1951.  That report also states that at that time “the quality of medical care available to the beneficiaries of the [VA] has been raised to a point where it unquestionably represents the best medical care available anywhere in the world at any time in the world’s history.”  This statement should remain our goal, and light the path of our efforts to face the promises and challenges of the present, and the uncertainty of the future. 

PVA appreciates this opportunity to present our views on the current state and future challenges confronting VA health care.  I will be happy to respond to any questions.

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