Report says VHA spent $4 billion on new facilities with little oversight

January 16, 2020

A recent report found that the Veterans Health Administration invested billions in startup costs for new medical facilities, but it had no way to check if its spending was on-budget, according to an article on the Modern Healthcare website.

U.S. Government Accountability Office report said the VHA couldn't determine whether it was spending the money effectively because it had no process to compare its actual spending to its cost estimates for the projects.

"Without processes and clear definitions associated with measuring activation costs, VHA does not have reasonable assurance that it will be able to effectively manage the resources associated with activation," the GAO report said.

The VHA supplies new medical facilities with startup funds for new staff, furniture, equipment and other needs. 

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