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WASHINGTON -- The Department of Veterans Affairs
is about to give private HMOs and other health
networks access to a multibillion-dollar market
for veterans' care that the companies hope, and
veterans fear, could open a new era of
outsourcing.
The nation's major veterans organizations have
fought a fierce but behind-the-scenes battle
since a pilot program called Project HERO began
to take shape in a hotel meeting room in
February 2006. At an "industry day" gathering,
VA brass invited executives from dozens of
private health networks to bid for contracts
giving the government discounts in exchange for
a potential bonanza. Some executives say they
are aggressively pursuing that business and
more.
Despite its flaws, the VA health care system is
widely regarded as among the best in the nation.
A nearly united front of veterans groups argues
that the pilot project is a step toward
privatizing work now done at VA hospitals and
clinics. Nevertheless, the VA expects to award
five-year contracts next month that could put
hundreds of thousands of procedures under HMOs.
The contracts will cover four multi-state VA
administrative regions that include the
veterans' haven of Florida, 11 other mostly
rural states and portions of another 12.
Project HERO, short for Healthcare Effectiveness
through Resource Optimization, would allow
spending on many outsourced procedures to rise
by up to twice last year's amounts. Veterans say
that means the department plans to greatly
expand its use of private care at the expense of
equipment, staff and other needs inside the VA.
VA officials in charge of the project declined
several requests for interviews and to provide
data supplied to private companies for use in
bids due last month. |
