VA Hospitals Could Close By August With $2.5B Budget Shortfalls
WASHINGTON, July 14 (UPI) — The Department of Veterans Affairs warned it may have to shut down some hospitals in August if Congress does not address a $2.5 billion shortfall in the current budget year.
The VA said the shortfalls, caused in part by costly Hepatitis C treatments, have caused budget gaps that have yet to be plugged due to ongoing political squabbling. Officials said they are confident an agreement can be hammered out, but it hasn’t happened since the department requested a fix about three weeks ago.
The VA wants to use up to $3 billion for the new Veterans Choice program, with as much as $500,000 going toward Hep C treatment. A single pill to treat the disease can cost up to $1,000. Officials said the shortfalls also affect the care in the community program, which is outsourced medical care for veterans.
“If these program funds are not restored, VA will face shutting down hospital operations during August 2015,” VA Deputy Secretary Sloan Gibson warned in a letter to lawmakers accompanying the funding proposals.
The department is also considering furloughs and hiring freezes to close the funding gap for the budget year that ends Sept. 30.
Lawmakers from both sides of the aisle criticized the VA for failing to anticipate the shortfall and waiting until last month before announcing it. Rep. Jeff Miller, R-Fla., chairman of the House Veterans Affairs Committee, said he was disturbed by the “VA’s continued lack of transparency and refusal to be forthright with Congress” adding that “veterans must not be penalized for VA’s ongoing mismanagement.”
Miller called on President Obama to “step up and become engaged” to “ensure VA’s incompetence does not shut down hospitals and deny veterans the care they have earned.”
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