VA shutdown threat averted; Congress OKs fiscal plan

WASHINGTON — Congress finished work Thursday on a bill that will avert the latest fiscal crisis within the Department of Veterans Affairs and avoid a threatened shutdown of VA hospitals.

The Senate gave final approval to a plan that will allow the agency to shift $3.35 billion within its budget to make up a shortage in a health care account until Oct. 1, the beginning of the new fiscal year.

The VA bailout was made part of a $12 billion, three-month extension of federal highway programs that passed 91-4. The House passed the same bill 385-34 on Wednesday before it recessed until after Labor Day.

VA officials told Congress that they would be forced to begin closing hospitals, possibly including the VA medical center in North Las Vegas, unless they were given flexibility to cover the shortfall. The prospect was dismissed by lawmakers but caused a late scramble to carry out the fix.

"While I was disappointed to see the VA use scare tactics and threaten to close hospitals as a way to shift away blame for their poor management, I was more than proud to cast my vote today to solve this issue," said Sen. Dean Heller, R-Nev., who sits on the Senate veterans committee.

VA Secretary Robert McDonald told Congress in hearings over the past month that the number of appointments at medical centers increased substantially after the agency moved to fix the scandal over manipulated wait times for patients to see their doctors.

At the same time, a new and promising — but expensive — hepatitis C treatment put additional stress on finances.

"Without this legislation, the VA could run out of money by September," said Rep. Sanford Bishop, D-Ga. "Costs have exploded by more than 10 percent in the last year as a result of higher demand, while the budget increased by only 2.8 percent."

The legislation gives McDonald the flexibility to consolidate programs that allow veterans to receive treatment in specific cases from doctors outside the VA system. Congress last year passed the Choice Act that enabled veterans to see non-VA doctors if they faced delay of more than 30 days making an appointment or if they live more than 40 miles away from a VA medical clinic.

"I hope we can look to streamlining non-VA care to make it more efficient and navigable for veterans," Heller said.

Contact Review-Journal Washington Bureau Chief Steve Tetreault at stetreault@reviewjournal.com or 202-783-1760. Find him on Twitter: @STetreaultDC