Thank you Mr. Chairman.  

I appreciate your holding this hearing today to examine how well the Department of Veterans Affairs (VA) is providing health care to our veterans within their communities - when a VA facility is too far from a veteran’s home or a service is not available within VA.

The use of local, non-VA providers offers greater access to services and is vital to ensuring that our veterans get the care they need in a patient-centered manner.   Known as the fee-basis program, VA spent over $3 billion dollars last year, with more than half of this spending for outpatient care. 

Recognizing the size and scope of the fee-basis program, in 2006, Congress directed VA to establish a pilot program to better manage the care VA purchases.  In response, VA developed Project Healthcare Effectiveness through Resource Optimization or Project HERO. 

The purpose of the Project HERO pilot program is to more effectively refer and better coordinate fee-basis care, improve the exchange of information between VA and community providers, and increase veteran patient satisfaction.

As we enter the third year of the Project HERO pilot, it is important that we take a critical look at the implementation of the pilot - its successes and challenges. 

VA does not have a standardized method to monitor fee-basis care, outside of Project HERO.  And, it is very troubling that a VA Office of Inspector General audit of VA’s outpatient fee care program last August revealed significant payment errors and oversight vulnerabilities. 

I look forward to hearing from our witnesses today and to examine how to strengthen controls over VA’s fee-basis program to ensure both high quality care and good management and oversight.

Thank you Mr. Chairman, I yield back the balance of my time.