GAO raises concerns about cost of furniture, medical devices at embattled Aurora VA hospital 

Veterans affairs sign
A new VA hospital in Colorado has gone far overbudget and is behind schedule. (JeffOnWire CC BY 2.0)

Federal officials have brought up new cost concerns about a Colorado VA medical center that is already more than $1 billion overbudget and significantly behind schedule 

Andrew Von Ah, director of the physical infrastructure team at the Government Accountability Office, expressed concern about the budget set aside for furniture and medical devices at the Aurora, Colorado, hospital in his testimony (PDF) on Wednesday before the House Committee on Veterans' Affairs. 

The Department of Veterans Affairs had estimated that it would cost $341 million to furnish the hospital and purchase needed devices, but Von Ah said that the agency did not "meet best practicies" when developing the estimate. However, he said that the VA has taken steps to address the issue. 


13th Partnering with ACOS & IDNS Summit

This two-day summit taking place on June 10–11, 2019, offers a unique opportunity to have invaluable face-to-face time with key executives from various ACOs and IDNs from the entire nation – totaling over 3.5 million patients served in 2018. Exclusively at this summit, attendees are provided with inside information and data from case studies on how to structure an ACO/IDN pitch, allowing them to gain the tools to position their organization as a “strategic partner” to ACOs and IDNs, rather than a merely a “vendor.”

"While we cannot find that the current estimate meets or substantially meets all of the characteristics of a reliable estimate, VA has made improvements in the documentation of the estimate since our report," Von Ah said. 

RELATED: VA's hospital security protocols, lack of oversight put patients at risk, GAO finds 

The Aurora hospital has faced criticism since it was revealed in 2015 that the project was more than $1 billion over budget and years behind schedule. An internal document obtained by The Denver Post revealed that though the VA is expected to announce next week that construction on the hospital is complete, its staff will spend several months finishing hundreds of items. 

When the hospital opens in August, it will likely be understaffed, according to the article. Plus, the VA will need to continue operating the old Denver medical center for at least three years, as a planned post-traumatic stress disorder (PTSD) building in Aurora was scrapped to cut costs. The old Denver facility will also house seven primary care teams that don't have space in the new hospital, according to the article. 

RELATED: VA secretary issues a blunt assessment of care for veterans 

At the hearing, Stella Fiotes, acting principal executive director of the VA's Office of Acquisition, Logistics and Construction, testified (PDF) that the budget is still on track for the $341 million estimate. The VA is also looking into ways to offer PTSD care at the new hospital, she said. 

Despite challenges posed by the project, "VA remains committed to ensuring the project provides a facility where Veterans will receive convenient 21st Century healthcare in a manner where the department, Congress, veterans service organizations and local stakeholders work together for the benefit of our nation’s veterans," Fiotes said. 

Committee chairman Phil Roe, M.D., R-Tenn., said that lawmakers would "keep a close eye" on the costs of the facilitiy. Roe and Rep. Mike Coffman, R-Colo., who represents Aurora, toured the facility last week, and he said that though it is state of the art, the problems that have plagued the project are hard to ignore. 

"The road to completing this hospital has been extremely long and bumpy," Roe said. "This situation must never happen again." 

A video of the full hearing is embedded below: 


Suggested Articles

The FTC is suing health IT company Surescripts, accusing the company of employing illegal vertical and horizontal restraints in order to maintain its…

Ohio’s attorney general is continuing his war on PBMs, this time by proposing a multi-step plan to improve transparency and lower drug costs. 

The Trump administration wants to allow state Medicaid programs test new models of integrated care to treat dual eligible beneficiaries.