Thank you, Mr. Chairman. 

I appreciate your holding this hearing to discuss a draft bill that would authorize the Department of Veterans Affairs (VA) to carry out major medical facility projects and leases for fiscal year 2009. 

Important to delivering high quality care to our Nation’s veterans is the planning for the construction and renovation of VA’s substantial health care infrastructure.  VA maintains an inventory of approximately 1230 health facilities.  This includes 153 Medical Centers, 135 Nursing Homes, 731 Community Based Outpatient Clinics, and 209 Vet Centers.  

VA initiated the Capital Asset Realignment for Enhanced Services (CARES) process to identify and address gaps in services or infrastructure eight years ago.  The CARES process continues to serve as the foundation for VA's capital planning priorities. 

VA’s construction planning, however, is not without challenges.  The rising cost of construction has been significant.  In fact, the draft legislation we are discussing today would provide over $670 million to account for cost increases for previously authorized construction projects. 

Mr. Chairman, I am extremely concerned that VA’s inability to accurately project cost estimates is adversely affecting the construction process.  Escalating project costs continue to require this Committee to reexamine and increase authorizations for existing projects, hindering the ability to move forward with new projects important to improving access to care and supporting future health care demand. 

CARES identified Okaloosa County in my district in Northwest Florida as underserved for inpatient care.  In fact, it is the only market area in the VISN, VISN 16, without a medical center.  However, VA has yet to act to address the inpatient care gap in this region.   

There is a tremendous opportunity to collaborate with the Department of Defense (DOD) for medical services on the campus of Eglin Air Force Base that would benefit both veterans and active duty service members in this area.  

Last September, I introduced, H.R. 3489, the Northwest Florida Veterans Health Care Improvement Act.  This legislation would expand the partnership between Eglin Air Force Base (AFB) and the VA Gulf Coast Veterans Health Care System (VA GCVHS) to provide more accessible health care to eligible DoD and VA patients in the Northwest Florida region.  In collaboration with DoD, this bill would provide inpatient services and expand outpatient specialty care through the construction of a joint VA/DOD outpatient medical facility on the Eglin AFB campus. 

At our November 2007 Subcommittee hearing, Major General David Eidsaune, Commander, Air Armament Center, Eglin Air Force Base, testified about the successful partnership VA and DoD have developed in the region and stated that “This cooperative effort should serve as a model for future efforts to support the health care needs of our nation’s veterans.”

Mr. Chairman, I am providing you with updated legislative language that reflects the intent of H.R. 3489.  I respectfully request that this language be included in the introduced version of the “Department of Veterans Affairs Medical Facility Authorization and Lease Act of 2008” that will be considered by the Full Committee.  

I would be pleased to answer any questions.  I yield back.

Thank you, Mr. Chairman