- Contact the Committee

Good Morning. Today’s hearing is our sixth hearing on the Department of Veterans Affairs Information Technology programs. This hearing will revisit some key VA initiatives, including VETSNET, its automated claims processing program.

We will also review two new programs, the VA’s Core Financial and Logistics System (CoreFLS) and the Patient Financial Services System (PFSS). CoreFLS is currently undergoing operational testing in VISN 8 at the Bay Pines Medical Center in St. Petersburg, Florida. Unfortunately, during this testing phase it became necessary to repeatedly postpone surgeries because of multiple problems with implementation of the new system.

This is unacceptable and I am at a loss as to why the Department would choose the second busiest hospital in the nation for its test site. When I learned about this situation, I asked the VA’s Office of Inspector General to conduct a comprehensive review of the ongoing implementation of CoreFLS at the Bay Pines facility. This request was made by my Subcommittee on February 19.

We requested that the IG’s investigation focus on the adequacy and effectiveness of the training provided to employees at the facility, the cost of the two consecutive 30 day delays prior to full implementation, and the total penalties assessed for delinquent payment of invoices over 30 days old and current delinquent invoice inventory. I understand that the IG has sent (15) personnel down to the Bay Pines facility.

The Patient Financial Services System (PFSS) pilot project is currently underway in VISN 10 at the Cleveland Medical Center. The pilot project is designed to test PFSS in order to demonstrate how integrated, commercial patient management and patient financial software will improve VA’s third party collections.

The Subcommittee’s last hearing on November 19, 2003 dealt with the efforts being made by the VA and DOD to develop and deploy electronic medical records that are interoperable, bi-directional, and standards-based. Currently, we have servicemembers deploying overseas and we have servicemembers transitioning from active duty back to civilian status. How much easier would it be for these men and women if their medical information was in electronic format in a common medical record? I guess we want to hear from both the VA and DOD what is the latest and greatest in your endeavors to move this process forward. The President has identified moving toward electronic medical records as one of his top priorities. In his State of the Union address, the President said, “By computerizing health records, we can avoid dangerous medical mistakes, reduce costs, and improve care.” In fact, the Institute of Medicine, commonly referred to as IOM, issued a report entitled: “Patient Safety Achieving a New Standard for Care.” The report was the work product of the IOM’s Committee on Data Standards for Patient Safety and focused on improving quality of care in America and fostering the use of information technology within the health care system. We will hear from Dr. John Clarke, a member of the IOM’s Committee, and get his thoughts about the advantages of moving more aggressively toward paperless medical records.

During our last hearing it was acknowledged by me and others that more progress had been made in the last fourteen months than the prior twenty years. It’s been four months since our last hearing.
How much closer are the two departments to providing a seamless transition to veteran status?
Another area of interest to the Subcommittee is the VA’s smart card initiative. The VA testified before this Subcommittee back in September of 2000 that a Smart Card proof-of-concept demonstration was conducted on August 31, 2000 for the Acting Secretary and Veterans Service Organizations. The demo project showed how the Smart Card could support express registration which would save time for the veteran and VA staff while improving data quality. The demonstration also showed how a veteran using a kiosk could digitally sign forms using keys securely carried on the card. The goal was to implement this program nationally by January 22, 2002. It is my understanding that a new Smart Card initiative has been underway. Hopefully, we will learn what went wrong with past efforts to implement the Smart Card after conducting the demo project in 2000.

This hearing will also give the new Assistant Secretary for Information and Technology, Mr. Robert N. McFarland, an opportunity to provide the Subcommittee with an update on implementation of the One-VA Enterprise Architecture plan and the state of the Department IT program.