Getting 15 new Department of Veterans Affairs medical sites up and running remained sidelined more than two years after their approval due to ongoing bureaucratic wrangling over the pricing methodology for site rentals, leaving those following the issue concerned that veterans would receive fewer health care options than promised.
Veterans Affairs leaders and congressional officials in recent years have pointed to the proposed medical leasing sites as a valuable tool in expanding care options for veterans.
But the roughly $670 million lawmakers set aside for these 15 projects wasn’t enough to pay for the planned spaces, according to preliminary bids. And for months since receiving that news, officials have been unable to make progress in the process of obtaining new bids for the projects, largely due to behind-the-scenes concerns about the pricing guidelines.
The stalled projects are in twelve different states, including two in Texas and three in Florida. Fourteen of those are potential new outpatient clinics, while one in Tampa, Florida, is a planned community center.
Veterinarian claims in the PACT Act continue to rise, two years after the law was introduced
As part of the PACT Act – sweeping veterans benefits legislation signed into law in August 2022 – Congress authorized and funded 31 new major VA leases intended to expand medical and support service options for veterans across the country. In total, the projects are expected to add 2.8 million square feet of additional healthcare space in the coming years and serve more than 3.6 million veterans.
When the legislation passed, VA officials touted the permits as a win for veterans, allowing planners to create new medical spaces faster than the traditional facility construction and acquisition process.
As of June 2023, one lease has been awarded and 15 others are in the final stages of approval, department officials said.
VA press secretary Terrence Hayes acknowledged that “VA received offers for the remaining 15 leases that exceeded authorized financing levels, which VA cannot legally accept.”
That means officials will have to rework these proposals and resubmit them to lawmakers with new parameters and cost guidelines before they can move forward. Congressional committees will have to give final approval to any substantive changes before they can move forward.
Hayes said the money set aside for the work will not expire, so the delays will not jeopardize funding for the projects.
But people familiar with the process told Military Times that VA and Office of Management and Budget officials have been sparring since early spring over the methodology for calculating rates and cost adjustments, a bureaucratic fight that has delayed the project.
OMB officials did not return requests for comment on the matter. VA officials declined to comment on correspondence with OMB leaders.
The technical battle has repeatedly reduced the ability to move forward with the search for new locations for the clinics, even as VA officials have emphasized the need for more medical options for veterans. Congressional aides said they expected the new leases to be submitted for approval months ago, and are unsure exactly where VA and the White House stand in the current process.
If the new leases are not approved by the end of the year, the process could be forced to start all over again under a new administration and Congress, pending the results of the November elections.
That could mean months of waiting for lease approvals and even longer for facility staff to open their doors to provide care to veterans. In the current situation, it is unlikely that the doors of the new clinics will open before mid-2025, even if projects continue in the coming weeks.
Hayes said department leaders “remain fully committed to providing timely access to world-class care at these locations, and we are exploring all possible options, including working with Congress, to move forward with these leases.”
VA officials have not released completion dates for any of the PACT Act rental projects, or when they expect to resubmit paperwork on the problematic projects to Congress.