[House Hearing, 115 Congress] [From the U.S. Government Publishing Office] MILITARY CONSTRUCTION, VETERANS AFFAIRS, AND RELATED AGENCIES APPROPRIATIONS FOR 2018 _______________________________________________________________________ HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTEENTH CONGRESS FIRST SESSION _________ SUBCOMMITTEE ON MILITARY CONSTRUCTION, VETERANS AFFAIRS, AND RELATED AGENCIES CHARLES W. DENT, Pennsylvania, Chairman JEFF FORTENBERRY, Nebraska DEBBIE WASSERMAN SCHULTZ, Florida THOMAS J. ROONEY, Florida SANFORD D. BISHOP, Jr., Georgia DAVID G. VALADAO, California BARBARA LEE, California STEVE WOMACK, Arkansas TIM RYAN, Ohio EVAN H. JENKINS, West Virginia SCOTT TAYLOR, Virginia NOTE: Under committee rules, Mr. Frelinghuysen, as chairman of the full committee, and Mrs. Lowey, as ranking minority member of the full committee, are authorized to sit as members of all subcommittees. Maureen Holohan, Sue Quantius, Sarah Young, and Tracey E. Russell, Subcommittee Staff __________ PART 3 Page Veterans Affairs............................................. 1 Office of the Inspector General.............................. 141 Public Witnesses............................................. 235 Veterans Affairs Electronic Health Record....................................................... 321 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] __________ U.S. GOVERNMENT PUBLISHING OFFICE 28-157 WASHINGTON : 2018 COMMITTEE ON APPROPRIATIONS ---------- RODNEY P. FRELINGHUYSEN, New Jersey, Chairman HAROLD ROGERS, Kentucky \1\ NITA M. LOWEY, New York ROBERT B. ADERHOLT, Alabama MARCY KAPTUR, Ohio KAY GRANGER, Texas PETER J. VISCLOSKY, Indiana MICHAEL K. SIMPSON, Idaho JOSE E. SERRANO, New York JOHN ABNEY CULBERSON, Texas ROSA L. DeLAURO, Connecticut JOHN R. CARTER, Texas DAVID E. PRICE, North Carolina KEN CALVERT, California LUCILLE ROYBAL-ALLARD, California TOM COLE, Oklahoma SANFORD D. BISHOP, Jr., Georgia MARIO DIAZ-BALART, Florida BARBARA LEE, California CHARLES W. DENT, Pennsylvania BETTY McCOLLUM, Minnesota TOM GRAVES, Georgia TIM RYAN, Ohio KEVIN YODER, Kansas C. A. DUTCH RUPPERSBERGER, Maryland STEVE WOMACK, Arkansas DEBBIE WASSERMAN SCHULTZ, Florida JEFF FORTENBERRY, Nebraska HENRY CUELLAR, Texas THOMAS J. ROONEY, Florida CHELLIE PINGREE, Maine CHARLES J. FLEISCHMANN, Tennessee MIKE QUIGLEY, Illinois JAIME HERRERA BEUTLER, Washington DEREK KILMER, Washington DAVID P. JOYCE, Ohio MATT CARTWRIGHT, Pennsylvania DAVID G. VALADAO, California GRACE MENG, New York ANDY HARRIS, Maryland MARK POCAN, Wisconsin MARTHA ROBY, Alabama KATHERINE M. CLARK, Massachusetts MARK E. AMODEI, Nevada PETE AGUILAR, California CHRIS STEWART, Utah DAVID YOUNG, Iowa EVAN H. JENKINS, West Virginia STEVEN M. PALAZZO, Mississippi DAN NEWHOUSE, Washington JOHN R. MOOLENAAR, Michigan SCOTT TAYLOR, Virginia ---------- \1\}Chairman Emeritus Nancy Fox, Clerk and Staff Director (ii) MILITARY CONSTRUCTION, VETERANS AFFAIRS, AND RELATED AGENCIES APPROPRIATIONS FOR 2018 ---------- Wednesday, May 3, 2017. DEPARTMENT OF VETERANS AFFAIRS WITNESS HON. DAVID J. SHULKIN, SECRETARY OF VETERANS AFFAIRS Chairman Dent Opening Statement Mr. Dent. Good morning. Today, we are pleased to welcome back a good friend, Dr. David Shulkin, the new secretary of the Department of Veterans Affairs. The last time you appeared before the committee, you were VA. Under Secretary for Health. Now, you have been kicked upstairs after a unanimous Senate confirmation vote--to repeat that, it was unanimous and that says a lot in this political environment. So congratulations. With your extensive health background, I know you have got a great background in the Philadelphia area. I just learned, too, you were in Morristown in Chairman Frelinghuysen's district for some time. You certainly bring a lot of experience to the job, although I am sure these days that the challenges are very daunting for you. We realize this hearing is a little bit unusual. Rather than the typical budget hearing we usually have at this time of year, we are limited to a discussion of the skinny budget materials that OMB had sent to the Hill in March. The two-page entry for the VA doesn't give us much to go on in terms of program priorities or plans for the Choice successor program. But the skinny budget does give us one remarkable bit of news for the VA. Apparently, the administration is proposing a $4.4 billion or 6 percent funding increase for the agency. In addition, there is $2.9 billion proposed in new mandatory funding for the VA. You are probably the only domestic federal agency not facing a substantial cut. And so I suspect I am going to need a Kevlar vest when talking to my fellow Appropriations subcommittee chairmen. So when we see your full budget later this month, we will be asking some tough questions about the merits of your proposed increases when we know others will be struggling. Despite not having a complete budget, I am sure the members will find plenty of VA topics to ask you about this morning: How do you envision VA striking a balance between care in VA facilities, versus non-VA community facilities; making the electronic health record work for veterans, especially as they see more doctors through Choice; your efforts to tackle appointment scheduling problems; how you plan to approach disability claim backlogs and appeals; your plans to decrease veteran suicide and homelessness; your campaign to limit opioid abuse among veterans; and plans to access care for rural and female veterans. And that is probably just a start. The members will think of other things I am sure. So Mr. Secretary, we are going to include your full statement today in the hearing record, and we will be pleased to hear your oral statement. But before you begin, I will ask our ranking member, Ms. Wasserman Schultz, if she has any opening comments that she would like to make, then after that, the chair and the ranking member of the full committee. With that, Ms. Wasserman Schultz is recognized. Ranking Member Wasserman Schultz Opening Statement Ms. Wasserman Schultz. Thank you, Mr. Chairman. And welcome, Mr. Secretary. It has been a pleasure to talk with you over the last few weeks and good to have you in my office yesterday. We do appreciate you being here in your new capacity and I echo the chairman's comments, particularly given that it is an awkward situation that we find ourselves in. You are operating on a bigger stage than you were previously, and with greater responsibility that comes with the duties of being the secretary of VA. Mr. Chairman, since fiscal year 2008, the VA has seen a tremendous 70 percent increase in DVA accounts. DVA medical accounts have grown from $36.7 billion to $64.4 billion. And the overall discretionary accounts have increased from $43.6 billion to $74.3 billion. And fiscal year 2018 is no different. The President's skinny budget even requests $78.9 billion for a 6 percent increase from the 2017 enacted level. The 2018 budget also requests legislative authority and $3.5 billion in mandatory authority to continue the Veterans Choice Program. And what is a question that arises is that this would support a program that was initially meant as a stop-gap temporary fund. Mr. Secretary, while I am certainly, you know, thrilled to have you here today, it is unfortunate that we won't be able to discuss the specifics of the VA budget request. And the lack of detail makes it extremely challenging for the committee to properly do our job. Moreover, given this 70 percent increase over the past 10 years, it is critical that this committee has the opportunity to analyze and understand these numbers, as well as know more about why the VA continues to have issues of mismanagement, wait times and less than adequate care. While I can understand that this degree of growth has its growing pains, it is crucial that we understand how these issues are being addressed. And once we more fully understand those issues, at what point do we ask if this continued growth is unsustainable? Mr. Secretary, I ask these questions with genuine concern for the future of the VA. Obviously our driving concern must be to provide the best care to our veterans. However, if we don't control costs and ensure that the resources this committee provides are used in an appropriate and efficient fashion, we actually hurt our ability to help veterans and deliver on our mission of providing top-quality care. You know, it comes to mind to that, while we are providing additional resources, we are not seeing what would normally come as the commensurate response from the people who are receiving these services, because of the challenges that the VA is having in providing those services efficiently. Top-quality care is really our top priority and we need to make sure that we help you deliver on that mission. With that in mind, Mr. Chairman, it is imperative that we discuss a number of key issues, including the Choice program and the state of the VA's electronic health records. How does the VA envision Choice, a mandatory program, working with Community Care, a discretionary program? After creating the Community Care Account, which includes $9.4 billion in advance fiscal year 2018 appropriations, why does the budget request also include $3.5 billion for the Choice program? Additionally, where is the VA in implementing and improving its electronic health records system, and in executing Congress' mandate for full interoperability with the DOD systems? As we discussed this past Monday in my office, Mr. Secretary, a solution to this issue is long overdue. And finally, I hope you can address the significant number of vacancies at the department and when these positions are expected to be filled. Currently, 11 Senate-confirmable positions remain vacant, including the under secretary for benefits, the under secretary for health, the under secretary for memorial affairs, the general counsel, the assistant secretary for information and technology, the assistant secretary for policy and planning, the assistant secretary for management and the chairman of the Board of Veterans Appeals. And by the way, the veterans' appeals process is an absolute mess. And so for it to have no chair for as long as that has occurred is really unacceptable. And from our discussions, I really believe that you earnestly want to reform and improve the VA It is reflective in the confidence that was placed in you, with a unanimous vote for your confirmation from the United States Senate. And it is our duty, I believe, to ensure that you have adequate resources to do so and the proper oversight is in place to guard against abuses and mismanagement. As you can see, we have a lot to discuss today. And, Mr. Chairman, thank you for the opportunity to share my concerns, and I yield back. Mr. Dent. Thank you, ranking member. At this time, I would like to recognize the chair of the full committee, Mr. Frelinghuysen of New Jersey. Full Committee Chairman Opening Statement The Chairman. Great. Thank you, Chairman Dent and Ranking Member Wasserman Schultz. So, first of all, I want to give you a shout-out for passing your bill last year, September. Thank you for that effort. You were the pace setters. I wish we could have followed your pace, but in reality, we didn't. But I can't think of a more important department than the Department of Veterans Affairs. I mean, those who have served our country, and serve our country right now in dangerous places, deserve, when they get home, to get the best care possible. And I know you from your time in New Jersey and the wonderful things you did there. And, for good reasons, you were unanimously confirmed by the Senate. There is not a lot of unanimity over there, but I am glad that they focused their attention and support for you. Two areas of particular interest to me--I don't want to take time away from your remarks or your questions. The continuing appeals and benefits backlog, it is a nightmare. I have even shared with you some of the 3- or 4-year waiting periods for people. Obviously, evidence has to be collected and verified, but in reality, it is a pretty nightmarish prospect, and certainly the confirmation of your undersecretaries might be helpful in that regard. So hopefully that will happen. And over the years this has been a continual interest to me--is electronic medical records. I think, 3 years ago, then- Chairman Rogers hosted Chuck Hagel, the Secretary of Defense, and Ric Shinseki, one of your predecessors. And we received a commitment from former General Shinseki that we would have, within a year, some sort of a solution. I know the Department of Defense--and, given the resources they have been given--is getting up to speed. But I do view your systems as sort of the weak link. So I just personally feel that this is something which is enormously important. In a day and age when we have so much information passing back and forth, obviously, encrypted and protected, to not have that available to our health care providers is pretty inexcusable. But good luck and Godspeed, and thank you, Mr. Chairman. Full Committee Ranking Member Opening Statement Mr. Dent. Mrs. Lowey, I would like to recognize you. Mrs. Lowey. Thank you very much. And I would like to thank Chairman Dent and Ranking Member Wasserman Schultz for holding this important hearing. And I welcome Secretary Shulkin today. We as members of Congress, and you as the Secretary of Veterans Affairs, have a duty to provide the best care available to our veterans, who have sacrificed and faithfully served our Nation. The VA faces serious challenges in meeting their health needs. After working 4 years to reduce the claims backlog, it is once again increasing, and the Choice Program will soon run out of money and is in need of reform. And the VA and Department of Defense are not significantly closer to the interoperability of electronic health records than they were years ago. We owe it to all current and future veterans to tackle these challenges now, and this subcommittee is committed to achieving that goal. I must say, after reading your resume, I am so optimistic. As was referenced before, Chairman Rogers and I had, I think, four hearings, right, Chairman Frelinghuysen? We also met in closed-door sessions. We hadn't been able to resolve this. Now, I have my own personal preference about who is to blame, as we were talking about it before, but that is irrelevant now. And, looking at your resume, I am so enthusiastic, and I know you are going to get this done. In my own district, I have worked to secure federal funding to improve rehab facilities and ensure that veterans can receive a high quality of care. But for too many, the VA is unable to provide the types of services they require. From women struggling to find care in a health system that has traditionally served men to veterans who were turned away from VA facilities when they are most in need, the VA has a responsibility to serve all veterans who seek the care and treatment they have earned. In light of these challenges, Congress awaits the details of the President's fiscal year 2018 budget request. The budget framework requests an increase of 6 percent for the VA, but lacks detail, providing just seven bullet points of vague proposals. While you may not be able to speak to details of the budget proposal now, I hope you will return after its release so we can fully discuss it. Mr. Secretary, I again thank you for being here today. Thank you for your commitment to improving the lives of veterans, and thank you for assuming the responsibility. I look forward to hearing about all your success, sooner rather than later, so we won't, in a bipartisan way, continue to talk about backlogs and the lack of records. So we have confidence in you and I thank you for appearing here today. Mr. Dent. Thank you, Mrs. Lowey. At this time I would like to recognize Secretary Shulkin for 5 minutes. Secretary Shulkin Opening Statement Secretary Shulkin. Chairman Frelinghuysen, Chairman Dent, Ranking Member Lowey, Ranking Member Wasserman Schultz, and all of you who are here today, I was so impressed with your opening statements and so many topics that you have thought about and that you care about, and that I know are serious issues--and we are trying to do things differently at the VA--that I have a terrific opening statement. But I am willing to--Mr. Chairman, to actually forgo it and get right into your questions, unless you would prefer me to go through the opening statement, because I think we have so many issues, and I want to use your time--most valuable. I have submitted it for the record. I would be glad to read through it, read through my whole statement, but I will leave it up to you. You would like to hear it? Mr. Dent. Yes. Secretary Shulkin. Good. Okay. Okay. I told you, it is terrific. Mr. Dent. The abridged version, about 5 minutes' worth. Secretary Shulkin. Okay. I will try to do it quickly, but thank you. Okay. So thanks for the opportunity to be here today to talk about the President's 2018 budget. I also want to thank you all for your support of the 2017 budget that really gave us, for the first time, our full budget from the start of the fiscal year. It really speaks well of the U.S. Congress, and really, of the American people, that, despite all these differences--and you have mentioned this several times--that we can come together on this topic to support our Nation's veterans. I have submitted the full statement for the record. The President's 2018 budget reflects his strong personal commitment to our Nation's veterans. It provides the necessary resources to continue the ongoing modernization of the VA system. The budget requests $78.9 billion in discretionary funding for VA, a 6 percent increase from the 2017-enacted level. It provides $4.6 billion more for medical care, a 7.1 percent increase, and the $3.5 billion more in mandatory budget authority that was mentioned to continue the Veterans Choice Program. More veterans are opting for Choice than ever before--five times more in fiscal year 2016 than fiscal year 2015--and Choice authorizations are still rising. We have issued 35 percent more authorizations in the first quarter of fiscal year 2017 than in the same quarter of 2016. All told, including both care VA facilities and in the community, we project a 6.6 percent increase in ambulatory care for 2018 over 2016. I urge you to support and fully fund our 2018 request to enable VA to meet increasing demand for VA services, to modernize the VA systems and to invest in choice. As you know, I came to VA during a time of crisis, when it was clear that veterans were not getting the timely access to high-quality health care they deserved. I know VA has made significant progress in improving care and services to veterans, but I also know that much more must be done if VA is to continue keeping President Lincoln's promise to care for those who have borne the battle. Last week, I had an opportunity to meet two courageous young Americans, Michael and Sarah Verardo of Rhode Island. All Michael ever wanted to do was to be a soldier, and he became a soldier serving his country--serving in the Army's 82nd Airborne Division. Then he lost a leg and part of his arm in an IED explosion in Afghanistan. He suffered other wounds as well. They told me, when he sought care from the VA in 2014, they did not receive the care. We cannot allow ourselves to ever again fail our American heroes like the Verardos. Meeting Michael and Sarah underscored for me the urgency of VA modernization. My five priorities as Secretary are to provide greater choice for veterans, to modernize their systems, to focus resources more efficiently, to improve the timeliness of our services and suicide prevention among veterans. We are already taking bold steps towards each of these priorities. Two weeks ago, the President signed a reauthorization of the Veterans Choice Act, ensuring veterans can continue to get care from community providers. Just last week, the President ordered the establishment of a VA. Accountability Office, and we are moving as quickly as we can within the limits of the law to remove bad employees. VA has removed medical center directors in San Juan, Shreveport, Louisiana, and recently, we have relieved the medical center director right here in Washington, D.C., and removed three other executive service leaders due to misconduct or poor performance. We simply cannot tolerate employees who act counter to our values or put veterans at risk. Since January of this year, we have authorized an estimated 6.1 million community care appointments, 1.8 million more than last year, a 42 percent increase. We now have same-day services for primary care and mental health at all of our medical centers across the country. Veterans can now access wait-time data for their local VA facilities by using the easy online tool where they can see those wait times. No other health care system in the country has this type of transparency. VA is setting new trends with public-private partnerships. Last month, we announced a public-private partnership of an ambulatory care development center with a donation of roughly $30 million in Omaha, Nebraska, thanks to Mr. Fortenberry's help there. Veterans now have--or will have a facility that is being built with far fewer taxpayer dollars than in the past. Finally, VA is saving lives. My top clinical priority is suicide prevention. On average, 20 veterans a day die by suicide. A few months ago, the Veterans Crisis Line had a rollover rate to a backup center of more than 30 percent. Today, that rate is less than 1 percent. In support of our efforts to reduce suicides, we have launched new predictive modeling tools that allow VA to provide proactive care and support for veterans who are at the highest risk of suicide. And I have recently announced that VA will be providing emergency mental health care to former service members with other than honorable discharges at all of our medical facilities. We know that these veterans are at greater risk for suicide, and we are now caring for them as well as we can. These are just a few of the efforts that are under way, but are already improving the lives of veterans. But to keep moving forward, we need your help. We need Congress to help us realign our capital infrastructure, to dispose of property we don't need and to support facilities where veterans can get better served. We need Congress to fund our I.T. modernization to keep our legacy systems from failing and to increase the interoperability of electronic health records essential to any high-performing integrated health system. We are also weighing options for adopting a commercial off-the-shelf alternative to our legacy systems. I have scheduled the decision for this in July. If it makes sense to go to the off-the-shelf route, we will need some additional support from you as well. We need Congress to authorize the overhaul of our broken and failing claims appeals process that many of you have mentioned. Working closely with veteran service organizations and other stakeholders, VA has drafted legislation to modernize the system. We have submitted our proposal to the 114th Congress, and we have resubmitted it in this current Congress. We need Congress to act on this. Most of all, we need Congress to ensure the continued success of choice for veterans. Extending the Choice Program past its August end date was an absolute necessity, and thank you for that. But extending the program was just the next step towards the modernization of community care that veterans deserve. We have charted a course for modernization and are already moving forward, but we need your help to keep up with the Choice Program's growth, maintain our momentum, and make our community care plan a reality for all veterans for generations to come. In closing, let me again express my thanks to the Appropriations Committee and to this subcommittee for the support that you have shown veterans in recent years. Without that support, we could not have expanded Choice to a record number of veterans while also curing so many veterans of hepatitis C. You have made that possible, and 77,000 veterans are now free of hepatitis C as a result. Thank you for the opportunity to be here today. I look forward to all the questions that you may have. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Dent. Yes, at this time, I would like to recognize the chair of the full committee, Mr. Frelinghuysen, if he has any questions. VISTA ELECTRONIC HEALTH RECORDS The Chairman. Very briefly, you talk of the legacy system. The acronym is VistA. Now, you are looking at an off-the-shelf system. Isn't the issue here different I.T. systems at every hospital? So, where are you in the overall--very briefly, where are you--in terms of some--maybe some good news in the mix? Secretary Shulkin. Right. Well, we only have 130 different systems, okay. So the VistA system is something that, frankly, VA should be proud of. VA invented it. It was the leader in electronic health records. But, frankly, that is old history, and we have to look at keeping up, and to modernize the system. I have said two things, Mr. Chairman, in the past. I have said--number one is VA has to get out of the business of becoming a software developer. This is not our core competency. I don't see why it serves veterans. I think we are doing this in a way that, frankly, we can't keep up with. So, I have said that we are going to get out of that business. We are either going to find a commercial company that will take over and support VistA, or we are going to go to an off-the-shelf product, and that is really what we are evaluating now. We have an RFI out for essentially the commercialization of VistA that we would no longer be doing internally. The second thing I have said is that--and I think it was referenced in several of your comments--you have asked the Department of Defense and VA to work together probably for 10 or 15 years. And we have always found ways not to do that. Secretary Mattis and I have talked about this. We believe that we need to find ways to work together. So when I come out in July, I am going to be talking about a process that led to a decision to get us out of the software development business and to find a way to work even closer with the Department of Defense than we have. And we are working rapidly towards that decision, and I am committed to that date. The Chairman. Thank you for that progress. Mr. Dent. Thank you. At this time, I would like to recognize Mrs. Lowey. Mrs. Lowey. Thank you so much--thank you so much, Mr. Chairman. There are so many questions, but I must continue this discussion, having been part of this issue of records for the last 5, 6, 7 years. And I gather we have spent $1.4 billion on this--I don't even know what I want to call it, project, search, interoperability. But what I am confused about, it is my understanding that the Defense Department has already rolled out the system. It seems to me you make a lot of sense saying, we are not going to be in this business anymore, we want an off-the-shelf system. However, in order to foster--to ensure there is interoperability, what is wrong with the Defense program, and why wouldn't you, at least at the outset, explore that? Because if you choose another system, and they have their system, what is it going to be? Another billion dollars that we could use for suicide prevention, for treatment, for all kinds of important things. I have to tell you, as the ranking member, Chairman Frelinghuysen and I go to a lot of committee hearings. But this affects my heart. And when I talk to veterans in the district, and I know the challenges they are facing, and I know that you have all the competence, background to do it, why wouldn't you start--or are you looking at the system the Defense Department has rolled out? Secretary Shulkin. Yes, so, first of all, I hear your---- Mrs. Lowey. Frustration. Secretary Shulkin. That is probably a good word. Mrs. Lowey. I am smiling, so--we have had hearings where the anger was---- Secretary Shulkin. Yes, yes. No, listen, Congress has been very clear on this for years and years. And that is why I believe that you and the American people and the veterans deserve a clear direction on this. And I am committed to doing that. I can tell you we are exploring all options. I am sure you understand this is a highly complex issue. And I have lived through personal electronic medical record conversions in hospitals that I have led. These are not easy projects in single hospitals, let alone talk about the size of the VA system. So we are taking this very seriously. I can assure you we are exploring all those options. We also as we get more veterans out into the community, out into the private sector hospitals, we have to be very concerned about interoperability with those partners as well. So if there was an easy solution here, I am sure it would have been made already. But we are going to make a decision and we are going to move forward with it, and we are going to need your help in being able to implement that. Mrs. Lowey. I just want to say thank you, Mr. Chairman. And I want to thank you for assuming the responsibilities that our veterans certainly are looking for and they deserve. And I wish you the best of luck. And I look forward to your coming back sooner rather than later, because I don't want to have another hearing on interoperability. Secretary Shulkin. Right. Mrs. Lowey. So thank--and I want to remind you again, $1.4 billion has already been spent on trying to get the Defense Department and the VA coordinated. So thank you so much again. We look forward to hearing from you as soon as possible. Secretary Shulkin. Thank you. Mr. Dent. Thank you, Mrs. Lowey. THE FUTURE OF COMMUNITY CARE Mr. Secretary, we understand that you are floating ideas for a system to consolidate the various non-VA care programs, including Choice. While we realize your proposals are by no means locked down, it sounds like you are contemplating a plan that would allow veterans to seek urgent care outside the VA system. It will be followed by a discussion with a VA care provider about whether the veteran should be seen in the community or by the VA. That decision would be based on the results of a local health market analysis identifying the capacity, quality and cost of the various services at the local VA. Is the basic premise of this proposal to keep services within the VA, subject to availability, quality and capacity, rather than open the doors more broadly to non-VA care? Secretary Shulkin. Let me try to describe it, Mr. Chairman, a little bit differently than that. First of all, I think you are correct that what we have identified coming out of the 2014 wait-time crisis out of Phoenix was that the VA, I don't believe had the appropriate management systems in place. And the way I believe that you run a clinical system is that you put your clinical urgency first. So, if somebody is waiting for a routine examination, that is normal. But somebody shouldn't be waiting if they have a tumor in their chest or if they have blood, you know, coming out of parts of their body that they shouldn't have it coming out of. That needs urgent care right away. So we are going to prioritize and to make sure that veterans aren't waiting. Secondly, we are trying to build an integrated system of care. That means if you look at this from the veteran's perspective, which is really the only perspective we should be looking at this from, you want to take what the VA does best for veterans that you can't find as well in the private sector. And you want to take what the private sector does best that the VA doesn't do as well. And you want to make that an integrated experience for the veteran. And that is what we are trying to do. Currently, one- third of our care happens outside the VA walls; two-thirds inside. And we are working now to get the proper mix in each of the communities, because it will look different in New York City than it will in Arkansas, and try to figure out in that community what is the proper mix of inside VA and working with the community. And that is what we are hard at work at doing. And I think that this will benefit the veteran the most. Mr. Dent. And to follow up on that. What cost governors would you include to keep the program costs to a manageable level? Secretary Shulkin. Yes. Well, I am very sensitive to cost. And my belief is that one of the reasons why we got into the problems that we did in VA is because we were not properly funding the actual demand. And that is why I think it is so important that we, and you work with us, to get what the President has requested for the 2018 budget. Because I think that we need that. But I am not looking for non-sustainable increases year after year the way that we have in the past. And I think as Congresswoman Wasserman Schultz said, that is an unsustainable solution. The problems that we have in the VA are not primarily financial. These are primarily system issues that we haven't kept up with and we haven't modernized. So I am looking for an investment this year to help us modernize our systems. The I.T. system will be one example of where we need to come back, but I am not going to be seeking increases of this type in future years to come. So, we do need to put cost mitigation strategies in place. One of the areas that we are focusing on that I have already announced is fraud, waste, and abuse. I think that there are huge opportunities to identify waste and abuse in the current system. There are not the proper safeguards in place. And we are going to be taking some aggressive actions to do that. There are other cost mitigation strategies that I am seeking as part of Choice. One of them would be for the VA to be able to do value-based purchasing. The private sector has moved towards this where there are accountable care organizations to focus on quality and cost, and where you can purchase care based on the best value, which is cost over quality. We don't have those tools in the VA. In fact, we are restricted from using that. We have to pay a flat Medicare fee schedule. So, I am seeking the same tools that the private sector has to be able to control costs and improve quality. WORKFORCE AND FACILITY INFRASTRUCTURE NEEDS Mr. Dent. And can I just quickly follow up? If Congress were to adopt your ideas, what would that mean for workforce and facility infrastructure needs? Secretary Shulkin. In this budget? Mr. Dent. Yes. Secretary Shulkin. We are seeking the budget so that we can hire the proper health care professionals. We now have 45,000 clinical openings in the Veterans Health Administration, and another 4,000 openings outside of the Veterans Health Administration. So for a total of 49,300 employees that we are seeking. I think that, frankly, the crisis that went through and the lack of good press, and so the impact on the morale of the workforce has really hurt us in recruiting. Of course, we had a hiring freeze in place up until April 12th. So we have fallen behind. And, in particular, in my priority areas like mental health, I need 1,500 new mental health professionals to join the VA. So we are really prioritizing that right now and this budget would allow us to get up to that staff. Mr. Dent. Thank you, Secretary Shulkin. At this time, I would like to recognize the ranking member, Ms. Wasserman Schultz, for 5 minutes. Ms. Wasserman Schultz. Thank you, Mr. Chairman. First and foremost, I just wanted to suggest that, as a number of members have mentioned it, because the Secretary is limited to only speaking about the skinny budget, it would be incredibly helpful and important, once we have the President's budget released, for us to ask him to come back and hold a hearing on the actual, full budget request. So, I would ask both the chair--both chairs--to please consider doing that, just so we can delve into a little bit more detail. Thank you. VETERANS CHOICE PROGRAM I want to focus on the Choice Program for a moment, because you have asked for an additional $3.5 billion, and we talked about it yesterday a little bit. But, you know, we recently extended, as you mentioned, the Choice Program past the August expiration date, and there was $950 million left in the Choice account. So, in part, obviously, rather than letting that funding languish, and considering that there is still a need, that made a lot of sense. But, we did envision the Choice Program to be a temporary program initially. My understanding, and correct me if I am wrong, was that it was really supposed to be a bridge for the VA to transition to the Community Care Program, until we could get the Community Care Program in a place where it is able to provide the kind of timely services that we need it to. If that is not the case, then can you explain the differences between the two? And you have also proposed Choice 2.0. So we have Choice, Choice 2.0 and Community Care. I am not sure it would ultimately help us realize our goal of efficiency if we have three different programs in the private sector to help make sure we can meet the needs of our veterans. Secretary Shulkin. Right. I couldn't agree with you more. I am looking for one program. Three programs doesn't work. We now know, having two programs, that didn't work very well. We confused veterans. We had two programs, Community Care and Choice. They had different rules. They put veterans at risk in their credit because some--some paid first dollar, and others didn't, and you had to call different numbers to use them. We are proposing a single program for Community Care. As far as the intent of Congress for 3 years, look, Congress stepped up in a big way after the crisis when, basically, the country and Congress agreed that the current situation with veterans waiting for care was unacceptable. VA did exactly what Congress asked us to do, which was to put into place additional options for veterans to get care in the community. And now, we are seeing those authorizations and appointments occurring in the community. When I started at VA a little bit less than 2 years ago, we had 20 percent of our care in the community. Today, it is about 32 percent. So you can see we are expanding those options. I don't think there is any turning back from this. So whether it was intended to be authorized for 3 years or not--you know, I know that is what the legislation said--I think what we have seen is veterans need that care. They are coming to VA to seek that care, and we need to continue to support that. That is my opinion. So the $3.5 billion that was built into the program is very much a needed resource for our veterans. Ms. Wasserman Schultz. And I understand, given that your goal is one program--are you analyzing which program, ultimately, would be phased out? Because we have a tendency to, instead of phasing out programs, because they have people with a vested interest in them, simply, you know---- Secretary Shulkin. Yes. Ms. Wasserman Schultz [continuing]. Going along to get along, rather than rocking the boat. And so, if we are adding $3.5 billion to the Choice Program and it--you know, it had $950 million left, there have been challenges with the Choice Program, and confusion, and there are still challenges with the Community Care program, in what direction is the VA thinking of going when we--and what is the timeline for ultimately---- Secretary Shulkin. Right. Ms. Wasserman Schultz [continuing]. Phasing out one program and only having one? Secretary Shulkin. Right. Well, with almost certainty, I can tell you there will not be three programs, because the current Choice Program will run out of money by the end of this calendar year. So that program is going to go away, and should be through December of this year. What we are hoping to do is to work with you so that we can introduce a Community Care funding program--the chairman referred to it as Choice 2.0--which is a program that makes sense for veterans, which is a single program that operates under one set of rules for how veterans get care in the community. And that new legislation, which we believe needs to be introduced by late summer or early fall in order to make the timeline, would end up with a single program. Ms. Wasserman Schultz. So you would eventually envision phasing out Community Care with the advent of---- Secretary Shulkin. Yes. Ms. Wasserman Schultz [continuing]. Choice 2.0. Thank you. I yield back. Mr. Dent. Thank you. At this time, I would like to recognize the gentleman from Florida, Mr. Rooney, for 5 minutes. Mr. Rooney. Thank you, Mr. Chairman. I would like to just sort of continue on, you know, the same line briefly, or just maybe make a statement that our chairman of the full committee, as well as Mrs. Lowey, Ms. Wasserman Schultz--pretty much everybody up here--agrees. We have been giving you all a lot of money. And I have been on this committee with General Shinseki, who I served under at Fort Hood with Mr. McDonough. He was a military man, Mr. McDonough, you know, businessman, you are a doctor. By the way, we have a lot in common. Even though I am from Florida, I grew up in Philadelphia. I have got a Pittsburgh connection, so I am rooting for you. But you know--and you talked about working with General Mattis and trying to get this continuity of care, and we all talked about on the stump when we are, you know, down in our districts that if you are--if you put the uniform on and serve this country, we are going to take care of you. As you mentioned Lincoln, we often reference Washington, the country can measure itself by how it treats its veterans. And one of the things that we say, from the time that you enlist or the time that you get commissioned to the time that you die, you will not be, you know, left out in the cold, we are going to take care of you. And one of the things that people ask me about is, well-- how--where does it fall through the cracks? And we often talk about how, even though we are giving you all the money that you need, that, you know, the difference between DOD and the VA is way too big. And whether it is, you know, the electronic records or just the fact that you have to basically start all over when you leave the military and you PCS and you get into the veterans, you know, program--whatever it is. INTEROPERABILITY WITH DEPARTMENT OF DEFENSE I guess my first question to you is, if General Mattis has a better idea than you do, will you agree to go to his program just to get this moving? I ask you this just to get this moving. I ask you this for this reason: you could be the best VA secretary of all time if you solve this one problem. And I mean, every time we sit up here and talk to people at this table, that--we always keep asking the same question. And I know that there is a lot of bureaucracy, and I know there is a lot of pride, and whatever the problem is, but, you know, we just hope that this--if it means you saying to Mattis, ``you know what, you are right, you have a better program, we are going to go with your program,'' will you do it? Secretary Shulkin. Yes. First of all, thank you for your comments, and I appreciate your perspective on this issue and how important it is. I am only here for one reason, and that is to solve the problems that have plagued VA I wish it was only one problem, by the way. But I agree with you, this is certainly an important problem for us. Anybody, whether it is Secretary Mattis or anyone else who has a better idea than I have, I am going to take it. The answer to your question is yes. We want to resolve this issue in the best way, and if it means taking somebody else's idea, we are going to do that. Mr. Rooney. I mean, it would be so good to be able to go home and stand up on the stump and tell these guys, I come from a district with a lot of retirees in Florida, a lot of military retirees--and tell these guys, ``if you put on the uniform of this country, we are going to take care of you.'' Basically, if you need the health or the mental health after you serve, it is--one of the advantages of joining, is that you know that you are going to be taken care of when you get out. So, that would be a huge help to all of us up here who are trying to convince people that fighting for this country has benefits well beyond just, you know, the pride of service. TRANSITIONING CARE BETWEEN VA FACILITIES One quick thing, since I am running out of time, and this is more specific to my district. I am having--my constituent services representatives down in Florida are telling me that we are getting a lot of people that are moving to Florida, as they always do, from other parts of the country. And they are going in to get care at our VA, and because of whatever breakdown in coverage, they are told that in my district, that--they are told to start a new treatment plan or return to the State--to where they came from, where they were already getting care for whatever problems that they were having. And this is kind of absurd from the standpoint of that I-- we have actually got five or six specific cases where people that live in Florida can't get the care that they were getting in their other State, so they are actually, rather than starting over in Florida, going back to their State where they came from and using that VA, because they are already in that system. This, again, gets to that system where there shouldn't be any lapse in coverage, but there is. Can you talk about the-- have you heard about this at all, or? Secretary Shulkin. I haven't heard about your specific situations, but I hope your directors are watching this right now, because what you described is unacceptable. We have one VA system. Veterans should be able to get care at any VA that they go into, and that is our commitment. I am not at all doubting that it doesn't work all the time. I certainly hear many examples where it does work, and people are able to get care--they are travelling, they lose their medications, they are able to get to a VA, get them refilled, get the care they need. That is the system that we are--that is our expectation of how we manage the system, and I will reclarify that to our field. [The information follows:] One of the many advantages to our Veterans is the seamless care that we can provide throughout all of our VA facilities and this is possible through our national electronic record. All facilities need to make sure that front line staff offer a consistent message that no matter what type of services the Veterans are seeking, the site at which they are presenting has immediate access to their VA healthcare record. The Office of Primary Care Operations will be confirming this expectation with field facilities during either the next Primary Care VlSN Point of Contact call (May 18, 2017 at 1:00 pm EDT) and/or the Primary Care Interactive Office Hours (May 22, 2017 at 1:30 pm EDT). Mr. Rooney. Thanks, Doctor. Good luck. Secretary Shulkin. Thank you. JOINT LEGACY VIEWER (JLV) Mr. Dent. Thank you, Mr. Rooney. Mr. Secretary, if I could just interject on that point for a moment, could you just describe the current Joint Legacy Viewer---- Secretary Shulkin. Yes. Mr. Dent [continuing]. And what it can do to share DOD and VA records, just for the benefit of some of the members? Secretary Shulkin. Right. Mr. Dent. And we will go to Mr. Bishop. Secretary Shulkin. Yes, and I am sorry--I am sorry that Congresswoman Lowey left for this, because I didn't say this to her, but we did certify interoperability with the Department of Defense in April of 2016. That is through the Joint Legacy Viewer, that is probably where a lot of her $1.4 billion went to, although I don't think it was that much. And what this does is this allows any VA clinician, any DOD clinician, to be able to access records from the other system. So it is a read-only system. It is being used tens of thousands of times a month by our clinicians in both systems. So, it does work and it is a lot better than before, when we didn't have that ability. It is better care. But it is not the complete interoperability that I think that all of us would hope for. It is a read-only system at this point. Mr. Dent. Thank you for that clarification. Now, Mr. Bishop. Mr. Bishop. Thank you very much, and welcome, Mr. Secretary. And let me join my colleagues in congratulating you and thanking you for your commitment to get these problems fixed. THIRD-PARTY BILLING Let me go to an area of improving timeliness of service, which is third-party, uncollected billing. The fiscal year 2016 report on the appropriations had directed the VA to submit an annual report identifying the amount of third-party health billings that are owed to the VA, and the annual amount that is collected. It additionally required that the VA include a plan to capture uncollected third-party billings. The VA was directed to initiate a pilot program and figure out how best to capture the uncollected billings. The difference between billings and collections in fiscal year 2015 was $4.7 billion. And in fiscal year 2016, it was $5.164 billion. This is alarming because it means that billions in uncollected dollars are not available to the VHA to provide the services to veterans. What is the status of the pilot program, and who in the department is responsible for the fiscal management of third-party billings and collections? And if you could answer that quickly---- Secretary Shulkin. Yes, thank you. Mr. Bishop [continuing]. I want to move to another area. Secretary Shulkin. Congressman, I will try to answer this quickly. I think you have identified an area of significant risk for us, that we have opportunity to do this in a much better way than we are currently doing this, so I think you are correct. We currently collect around $3.4 billion a year. We actually will be asking for, in our new Choice legislation we hope to work with you on, the ability to do this better. We, right now, are not allowed to require that veterans give us their other health insurance. So a lot of that gap right there is because we don't know their insurance numbers, and we don't know their insurance company from which to collect it. But we are looking at--and we have a RFP that will be released in the next couple of weeks, to be able to see whether the private sector can actually help us do collections better, and that is part of our pilot work that we are doing. We are actually using another federal agency to help us with these collections, and that does seem promising. So, I can get you a more detailed answer, because I don't want to take up the time now, about the results of the pilot project. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Bishop. Thank you very much and I look forward to that. Secretary Shulkin. Yes. MYVA INITIATIVE AND VISN REALIGNMENT Mr. Bishop. Mr. Secretary, your predecessor, Mr. McDonald, started an initiative known as MyVA, to modernize and reorient the VA. The MyVA vision was to provide a seamless, unified veteran experience across the entire organization and throughout the country. In your testimony, you mention that you intend to modernize the VA as well. Can you tell us how your plan differs from Mr. McDonald's, and how you plan to--and whether or not you plan to build upon the MyVA? And, can you also provide an update of the Veterans Integrated Service Network's realignment? That is the first part of the question. And then the other has to do with facility realignment. You mention an actual infrastructure realignment strategy, and the last time VA made a major effort to set infrastructure needs was the Capital Asset Realignment for Enhanced Services, the CARES project. Do you envision that the department will embark on a similar effort? And if so, when will we see a plan to invest and divest VA capital assets? Is the strategy that you plan to propose similar to the military base realignment--the BRAC process? Secretary Shulkin. Yep. Well, there is a lot there, Congressman, so I will try to do this quickly. The MyVA program under Secretary McDonald, I think, no doubt, has the correct intent, which is to design a veteran- centric experience, and to focus on that experience. And we know that there was significant and good improvement being done under that program, because we could measure it. What I have said to the Department is that one of the benefits of me having been in the Department under Secretary McDonald is that I already know what was working. And I don't want to stop the progress that was being made. But I also don't believe we were making progress fast enough. So I am looking to essentially continue the parts of that program that work. But I am seeking much broader, bolder transformation of this Department because I think it is what is needed. And that is why I have sent my five priorities forward. In terms of the VISN realignment, we used to have 21 VISNs. We are now down to 18. Whether 18 is the right number or not, I think we are always continuing to take a look at that. But we are going to change the role and function of the VISN from what it currently is, which is another layer of administrative complexity--some people may call that red tape-- to a much more profound function in managing their local markets and moving toward this value-based purchasing concept and making sure that veterans get the best of care in the community and the best in VA care. So we are working on that transformation as we are building our Choice Program. FACILITY REALIGNMENT The realignment--the CARES program, I wasn't here when that was implemented. I do know that we have closed 1,000 facilities, so that--there has been progress made in that in the past. But I don't believe I have heard anybody, with enthusiasm, bringing back the CARES model. I think that we learned a lot of lessons in that. Whether they are--whether the BRAC is a model that we should take a look at, we are beginning to have discussions with members of Congress about their suggestions. We do believe that we have, I know, today, 431 vacant buildings and 735 underutilized buildings. And we want to stop supporting our maintenance of buildings we don't need, and we want to reinvest that in the buildings that we know have capital needs. So we are going to be looking forward to working with you on that. Mr. Bishop. Thank you very much, Mr. Secretary. Mr. Dent. Mr. Womack. Mr. Womack. Thank you. FOCUS ON CORE COMPETENCIES Mr. Secretary, welcome. And thanks for the breakfast yesterday and the opportunity to engage you in conversation before this hearing. It has been my experience, down through the years, that organizations--particularly large organizations--that find themselves in a bit of trouble sometimes, and many--many times, stem from the fact that they get away from their core competencies and they expand into areas where they are not terribly knowledgeable, capable and certainly not efficient. And they sometimes serve as kind of a weight, an albatross, if you will, around the neck of the organization, and it causes a lot of other things to be compromised in the process. And I suspect that the VA probably fits into this category. And so, specifically, my question is this: you have spent some time talking about I.T., which, I am beginning to believe, is not a core competency of the VA. We have had many indications that the construction of property is not--Aurora, Colorado, being, probably, the poster child for it recently-- not a core competency. And you talked about collections just a moment ago. And that would not necessarily be a core competency. So I am going to throw this on the table and let you respond. Is it your intent as the Secretary of VA to protect the core competencies of the VA by outsourcing, for lack of a better term, some of the other things that have served to kind of bog down the system? Secretary Shulkin. I think your assessment of what has happened in VA is probably pretty accurate. I think that we have learned the hard way and taken too long to make decisions in areas that, frankly, we just don't deserve to be in that business. And I think you have identified a few. My only modification, if you wouldn't mind, on the I.T. is I think I.T. has to be a competency of any organization nowadays. I mean, I can't imagine not. What we don't want to be doing is being in the software and product development business. But managing I.T. systems does need to be a competency of any successful company today, I believe. I don't know whether ``outsourcing'' is the right word. I do believe that, if we are going to serve veterans, we need to be working with a core group of our employees and staff that functions on our core functions. But when we have strayed outside, building buildings, you know, doing software development, doing--you know, claims and billing, I do think that we should be looking toward private- sector solutions, or, at the very minimum, private-sector-- private-public partnerships where we can get the competencies into the Federal Government. PREDICTING FUTURE DEMAND Mr. Womack. The last question I have is that one of the problems facing the Congress, and many previous Congresses, is the fact that the entitlement programs that we know, the mandatory side of spending, continue to chew up available revenues, and--putting a lot of downward pressure on the discretionary piece of the budget. And that is getting worse and not better. And I think part of that is because--and this is good news--the people are living longer. They are receiving benefits from those systems for a lot longer period of time than, actuarially, they were expected to at the time. Do we have a pretty good handle on the number of people that will be entering the VA system, so that we can rightsize the funding request to ensure that we meet those needs, and not play from a position of weakness by being behind? I have only got about 45 seconds left. But can you help me have confidence in knowing that we know what is going to be filling that pipeline, say, over the next generation? Secretary Shulkin. We certainly have a handle on the demographics of the veteran population. As you know, we have 22 million veterans today. And that is expected to decline. What we can't predict is, obviously, new conflicts that would happen, because that can change the picture. What we can't predict is new science that would show that there is additional mandatory coverage that we would need to include, as science shows that there is a connection between military service and some of the disabilities. And that work is always ongoing. So I think that we do have actuarial models in health care, cemeteries, and benefits that we can share some of the parameters for needs. But they are not fully accurate because of the unknowns that are out there. So--but I think, for what you are asking, we can share that with you. Mr. Womack. Thank you for your service, and congratulations on your appointment. I yield back. Secretary Shulkin. Thank you. Mr. Dent. Thank you, Mr. Womack. I would like to recognize Ms. Lee for 5 minutes. Ms. Lee. Thank you. Thank you. Good to see you, Mr. Secretary. Secretary Shulkin. Good to see you. Ms. Lee. I, too, want to congratulate you and just say I am glad you are at the helm of the VA, say--and thank you for being here. Secretary Shulkin. Thank you. OAKLAND REGIONAL OFFICE Ms. Lee. A couple of questions, and I will try to ask them very quickly. One is relating to the Oakland VA Regional Office. In January of 2014, the OIG found that there were significant delays, of course, in processing the claims. And the management didn't provide the oversight needed to ensure timely and accurate processing of informal claims. We had about 1,248 informal claims. Now, this was before the National Work Queue. Now we are on the National Work Queue. And, I would like to find out, has this helped reduce the claims backlog significantly? And is it helping to streamline and reform benefit claims processing, specifically regarding the Oakland VA Regional Office? That is the first question. HEALTH DISPARITIES AMONG MINORITY VETERANS Second question has to do with what we have briefly discussed as it relates to minority veterans. I have looked at your health disparities report, which is a very thorough report. And, of course, it cited the fact that minority veterans were diagnosed with PTSD at rates higher than white veterans. Also in the report, you go into some of the recommendations to begin to address not only PTSD in terms of its disparity, but all of the others. And it says that we need more research and more information. And I am wondering, though, as it relates to this report and the recommendations, as it--specifically relating health disparities with minority veterans, where are we on any of it? And are the recommendations being followed up? I can't help but wonder why more research would be needed. We have an Office of Minority Health over at HHS. And so I am not sure if you are coordinating, in terms of health disparities, with Health and Human Services. Just exactly what is going on? Because this is, I think, a very good report. And I know many, many minority veterans who are really struggling with all of the issues around health care, especially PTSD. And finally--and I have asked this of the OIG, and also when we were at the VA hospital--in terms of the utilization of minority and women-owned businesses, it is my understanding that you don't disaggregate the data. I would like to find out how we are doing as it relates to African-American, Hispanic and Asia/Pacific American--Islander firms and companies. And we--I still haven't been able to drill down and get that report. The VA is a significant entity that contracts quite a bit of money out. And I would like to find out how minority-owned contractors are faring. But we need to understand what the data is showing so that we can do better, because I have had a lot of complaints that--from minority-owned businesses that they can't seem to penetrate and get into the system for a fair shot. Secretary Shulkin. Okay. Well, thank you, Congresswoman Lee. These are all really important issues. So, on the claims backlog and what the impact of the National Work Queue has been, we do believe that that has been helpful. And we are seeing improvements in productivity. I would like to get back to, for the record if it is okay, the impact from where you were measuring it at 1,248, in Oakland, and see where we are today so that we can track that progress together, because I think that is important. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] On the health disparities report, I agree with you. I think the work that our national center is doing has identified significant issues. This, of course, is an example where I think VA is actually leading, and addressing issues that are important for all of the American public. And in health care, we know that disparities are a very significant issue, particularly in many of our geographies across the country. I think VA is leading in this area, but we still have additional work to do. And we are treating this as a priority issue and looking at the recommendations you have talked about. The research that the report recommended I think, is research on disparities in veterans. VA research has significant health services research components to it. And the difference between the health services research in VA and in HHS, like in the Agency for Healthcare Research and Quality, is our research is specific to veterans. And so, we do believe that there are some questions that are important to ask in order to understand what the most effective interventions are. But I don't think that is a reason for us not to be implementing the other recommendations. There is important work to be done. And we are focused on this now. Ms. Lee. Mr. Secretary, yes. Secretary Shulkin. Yes. Ms. Lee. Let me just comment on that, because I know the research is very important. But I know, specifically, and when you look at African-American veterans with PTSD, you have got other factors that weigh in. And the Office of Minority Health could let you know what those external socio-determiners---- Secretary Shulkin. Yes. Ms. Lee [continuing]. Are. Secretary Shulkin. Yes. Ms. Lee. It would really weigh in to help come up with treatment modalities that make more sense right away. Secretary Shulkin. Yes. I completely agree. The research that we--research is only good if you act on it. And there are some things that we already know. And I think that this is where we are looking at this in terms of implementing the recommendations that we know need to happen. And it is a way that, frankly, VA can lead and help the rest of American health care also implement these interventions. Ms. Lee. Do you have a working group that---- Secretary Shulkin. We do. Ms. Lee [continuing]. You put together? Secretary Shulkin. Yes. Ms. Lee. I would like to talk to you a little bit more---- Secretary Shulkin. Great. Great. Ms. Lee [continuing]. On that. Thank you. Thank you, Secretary---- Secretary Shulkin. And then on the small businesses, on the minority--I don't know how that data can be essentially categorized to answer your questions. Let me, please, look into that and get back to you on that. [Clerk's note.--The Department of Veterans Affairs was unable to provide a response to the question, despite having had 120 days to produce it.] Ms. Lee. Okay. Thank you. Thank you, Mr. Chairman. Mr. Dent. Thank you. Ms. Lee. Thanks. Good seeing you. Mr. Dent. I would like to recognize the gentleman from California, Mr. Valadao, for 5 minutes. Mr. Valadao. Thank you, Chairman. BLUE WATER NAVY VETERANS ACT Thank you, Mr. Secretary. As I am sure you are aware, in 2002, the VA reinterpreted the language of the Agent Orange Act of 1991 to apply only to veterans who actually set foot in the Republic of Vietnam or served in the inland rivers of Vietnam, or Brown Water veterans. Veterans who served on ships, or Blue Water veterans, were not included, and must prove service connection and exposure to Agent Orange. However, proven exposure for Blue Water veterans is nearly impossible due to a lack of record-keeping and inability to know the precise location of the dioxins--in this case, Agent Orange--in the air or water runoff. The VA continues to deny claims for Blue Water Navy veterans, despite studies showing higher rates of cancer and non-Hodgkin's lymphoma among shipboard veterans than those who fought on the ground in the country. This year I introduced legislation to right this wrong, H.R. 299, the Blue Water Navy Veterans Act, which currently has over 270 bipartisan cosponsors, including over half of this distinguished subcommittee. While I stand ready to work with my colleagues to pass this bill, the Department of Veterans Affairs has the power to right this wrong itself, without the help of Congress. Have you been made aware of this issue since you have taken over as Secretary? And to your knowledge, is the VA working towards a solution on this issue? Secretary Shulkin. Thank you for that question. Yes, I have been made aware of this issue. I would say 20 percent of my in-box is on this issue, so I hear from a lot of people. What I have done is, I have actually sat down and I have met with some of the leaders in this Blue Water Navy movement to understand exactly what they believe the science shows and what they are recommending. Commander Wells is certainly one of them; John Rossi, another that I have recently met with in my office. They have followed up with additional information which I really appreciated because I am trying to bring myself up to speed on this. The VA's position on this has been pretty much the science isn't there. I am not convinced that is the full story. And so, I have asked them for additional information and additional recommendations so that as you said if the Department of Veterans Affairs has the ability, and I agree with you, to change some of these, and if the evidence suggests that that is the right thing to do for veterans, I am going to recommend that. So this is very active. I can tell you this week alone I have been reviewing additional studies. So I will be, you know, certainly willing to engage in further conversation with you and I am aware of your legislation. Mr. Valadao. Thank you. And I do appreciate the fact that you acknowledge that there is other science out there. Because there are some studies out there that, especially with the way they treat the water, clean the water, that actually says it concentrates the chemicals and makes the situation worse for those serving. Secretary Shulkin. Yes. NEW THERAPIES FOR PTSD Mr. Valadao. And I appreciate you bringing that up. Then Mr. Secretary, I also understand that the Air Force is conducting clinical human trials at Tinker Air Force Base to investigate transcranial magnetic E-resonance therapy, MERT, on veterans suffering from PTSD and TBI, traumatic brain injury. After four weeks of active treatment, compared to the baseline, the treatment reduced an average PCLM score from 66 to 37. The Air Force concluded that the preliminary results suggest that MERT is a promising treatment modality to help veterans suffering from PTSD. With this information can you please share with the committee what the VA is doing to capitalize on this promising new treatment to address PTSD in the veteran community? Secretary Shulkin. Well, I am very familiar with the--with the MERT technology and I am very concerned about finding new therapies that help our veterans with PTSD, as well as other conditions related to the brain. We do use--VA has extensive use already of transcranial magnetic stimulation. The issue is whether the MERT technology adds additional value to what we are currently using. I have recently, in the last 10 days, visited Walter Reed. I have talked to them about this. We are looking at the science. I would like to see the results of the Air Force studies as they are coming on-line because basically if there is evidence in science suggesting that this is helpful and effective and especially a non-invasive technology, we absolutely want to be using it. Today, I am not aware of evidence that suggests that MERT adds advantages in terms of scientific advantages, over the transcranial magnetic stimulation that VA and Walter Reed and others are using, and I have talked to my DOD colleagues. Now, with new information coming out of the Air Force, I would be very open to seeing that. Mr. Valadao. All right. Well, thank you again. Thanks, Chairman. Mr. Dent. Thank you, Mr. Valadao. At this time I would like to recognize the gentleman from West Virginia for 5 minutes, Mr. Jenkins. Mr. Jenkins. Thank you, Mr. Chairman. Mr. Secretary, thank you also for the opportunity to visit with you in advance of this meeting to talk about your leadership and direction, and I applaud your efforts. ACCESS AND QUALITY WEBSITE Let me start off with a word of compliment. I learned yesterday from the discussion with you about your push to provide transparency, quality data, information about wait- times, our veterans' satisfaction, patient satisfaction. And you shared with us the Web site, accesstocare.va.gov. Secretary Shulkin. Thank you for that plug. Mr. Jenkins. And you didn't ask for this, but I'll give it to you. Secretary Shulkin. Yes. Mr. Jenkins. But I did look after you made mention of this and as I understand it from our discussion, this data has been out there. It has been available, but nobody was willing to authorize that the switch get flipped to make this available, and you did that. Secretary Shulkin. Yes. Mr. Jenkins. So thank you for doing that and I encourage people to take a look. Transparency is good. ACCOUNTABILITY AND WHISTLEBLOWER PROTECTION I want to make mention of this most recent executive order relating to some of the whistleblower and the accountability efforts. I can't tell you the number of times, whether it be a VA employee or others, about frustration or concern. Maybe very briefly describe this executive order and what kind of reassurances to those on the ground, at the grass roots, feel as though their concerns, their voices are going to be heard about reforming the system and truly holding it accountable and holding people accountable for good--the need for good performance. Secretary Shulkin. Well I think it is--I think that it is very important that people understand that we are taking these issues extremely seriously. That any organization that has been in trouble has to look towards its own leadership. And so we want to make sure that the people who are serving in our leadership positions are consistent and fulfilling the values that we owe our veterans. And so when we become aware of issues of poor performance or people that have strayed from those values, we are taking action. And I think you can see that there has been a large number of those actions taken recently. Because of that, the executive order has asked us to establish an accountability office that will report directly to me as the Secretary. As part of that, we are putting our whistleblower office in that accountability office to make sure that our employees know that if they raise issues to us, and if they are legitimate issues, that those employees will be protected. We do not tolerate retaliation and that is the way we learn and get better as an organization by addressing issues that are brought to our attention. So these two concepts of adhering to our values and protecting our employees that raise issues are absolutely essential to our success. PROVIDER PAYMENTS Mr. Jenkins. One area I would like you to have staff look into, we get a number of calls to our office relating to the payment processes of the VA. You have described an effort to work collaboratively with academic health centers, local hospitals that have real connections to the VA, make one plus one equal three, working together. One of the challenges that I have heard, really starting with the restructuring of the payment system of the VA, from June of 2015 and it continues today. I have got an academic medical center that really values and appreciates their good working relationship. The problem is the VA doesn't pay in a timely fashion. They have got literally hundreds of thousands of dollars in accounts receivable, from their standpoint--over 120 days. I have got a local hospital with over $10 million in accounts receivable from the VA over 120 days past due. So, I am not sure what is going on in the accounts payment and claims processing, but I think we have got some real timeliness issue. And I hope that that will be taken seriously. Secretary Shulkin. Yes, you have to understand that this is the world I came from. And I do believe, if you deliver a service, that you deserve to be paid and you deserve to be paid timely. It is too hard operating those health care organizations and not get paid for the work that you are doing. So I absolutely believe we have to get better at that. And I am not being defensive about this. We are not doing a good enough job in that area. The way that I would suggest that we proceed is, when you find a community hospital that thinks that they have $10 million that we owe, please let us know, because, when we have dug into these, we absolutely owe them money. But it is usually not the $10 million. There are duplicate claims in there. There are rejected claims in there that--sometimes they are looking at charges instead of the fee schedule that we pay them. But we can work through that. We can put a team on that and get them the money that they deserve, and get it to them quickly. Mr. Jenkins. Thank you. Thank you, Mr. Chairman. Mr. Dent. Okay. Mr. Taylor. Mr. Taylor. Thank you, Mr. Chairman. And thank you, Mr. Secretary, for being here today. And look, I--we understand that there is nothing little about the big challenges that you face in your current position, so appreciate you for that. I just have a--and I come from an area that has Hampton VA, which is the fastest growing--you know, OIF, OEF, women's veteran population is there. Personally, I am in the VA system myself, as well, so this is something that I am very passionate about, and I am looking forward to working with you to figure out some of these challenges and fix them. CORRESPONDENCE POLICY Quick question for you: if--one of us submits a question for your office, what is the--what is your policy in terms of the response? How many days? Secretary Shulkin. Yes, we categorize them into two types of responses. There are some that need urgent responses, and I think that we are shooting for that for--I know I am going to get this wrong, because we just shortened the timeframe to become more responsive--14 days was our short one. And then--is it 30 days for our longer one? So he says I got it right. So if there is something really urgent, we are going to do it in 14 days; otherwise, 30 days. And I know that that has not been the past experience from VA to your offices. This is our new commitment to respond to you in a more reasonable timely way. Mr. Taylor. Thank you. SUICIDE PREVENTION TRAINING Let me touch on the--I have a bunch of questions, but let me touch on some of the most urgent ones. Suicide is obviously something that has just been talked about, something that is also dear. I have a friend that has, you know, committed suicide. We have these issues, of course, in our area. One of the things that I did submit to your office and haven't received yet is questioning your--the uniform policy, because I understand that the VA, according to the I.G., of course, is--has sort of decentralized, if you will. Is there a uniform policy, currently, with people who are trained to intake folks who come up, physically, that either, you know, exhibit signs of suicide or say that they are--suicide? And furthermore, is there a uniform policy for the crisis hotline, which, I understand, is also being manned by call centers? What is the uniform policy there? And what is the training that those folks at the call centers get? Secretary Shulkin. Yes, I have seen some communication. So are you saying we are over 30 days already? Mr. Taylor. Yes, Mr. Secretary. Secretary Shulkin. Okay, well, this is how I learn, so thank you. My guess is you will be getting a response pretty soon. Mr. Taylor. Appreciate it. Secretary Shulkin. But I am aware of the issue--that there was concern about a lack of consistency of training between suicide prevention coordinators that live in our medical centers and Veterans Crisis Line responders who respond either from Atlanta or upstate New York. They are different professionals. Our Veterans Crisis Line responders are licensed mental health professionals. They receive much more clinically intensive training. Our suicide prevention coordinators don't have to be that. They are doing different functions. Many of them came out of different disciplines. And so there are different trainings. But among those two categories, there should be consistency among Veterans Crisis Line responders and suicide prevention coordinators. So we will take a look for your correspondence to make sure we get you back the response very soon. Mr. Taylor. I appreciate that, Mr. Secretary. Also, just one other thing on suicide. Is there any openness to a potential public-private type things with qualified nonprofits? So, for example, when I--when I say that, I--you know, there are a lot of veterans of course who are not comfortable with going to the VA or not comfortable with walking up or calling, but may need help, but may feel more comfortable with some of the nonprofits out there that--they themselves typically are manned by a lot of veterans as well, too, have gotten out and seen this problem firsthand. Is there any openness to a sort of pilot program potentially for public-privates to help with that? Secretary Shulkin. Well, not only an openness. We think it is absolutely essential. There is no other way to do this. Of the 20 veterans a day that are taking their life by suicide, 14 of them do not get their care in the VA system. So they are out in the community. Six are within the VA system. So if we don't reach out and do the types of partnerships that you are talking about, and getting everybody involved, there is no way we can adequately address this. So we have been outreaching. We are working with Give an Hour, working with the Cohen Veterans Network, we are working with a lot of our VSOs on this. We have public service announcements. If you have groups--there is a new group I just reached out to called Headstrong, the Galleon Organization. So, if you have new partnerships you would like us to explore, we are absolutely open to those. Mr. Taylor. Thank you, Mr. Secretary. Can you--I will have follow up, like I said, in the next round. But, just really quick, you have mentioned earlier that some of the under--underutilized buildings--I think there are 735--and then how many were vacant, you said? Secretary Shulkin. 435. Mr. Taylor. 435. I will hit you on the next round. Thank you, Mr. Secretary. Mr. Dent. Thank you. At this time, I would like to recognize the gentleman from Ohio, Mr. Ryan, for 5 minutes. Mr. Ryan. Thank you, Mr. Chairman. Thank you, Mr. Secretary. Good to see you again. PATIENT-CENTERED CARE Appreciate our meeting yesterday. Let me just say publicly, I think what you are doing in your patient-centered care area with Tracy Gaudet is some of the most exciting stuff going on, not just in the VA, but in government today, of really figuring out quality solutions, integrating care, all the rest. I just want to say thank you for throwing your weight---- Secretary Shulkin. Thank you. Mr. Ryan [continuing]. Behind that. I think it is really, really important, and I think we are going to start seeing a lot of savings because of that, and healing a lot of vets. So I want to say thank you right out of the gate. VETERANS CHOICE PROGRAM In our conversations that we have had already, I appreciate the balance that you are trying to strike between the VA clinics and the Choice Program. And I know that is not always easy. One problem area that we have become aware of in my office is that, despite the Choice Program being authorized and appropriated, we still have veterans traveling significant distances to try to get their care. And if a veteran has a clinic within 40 miles, but the clinic doesn't offer the services they need, the veteran is being told they are ineligible for the Choice Program and being referred to the nearest VA clinic with the services offered. There appears to be no policy that places a cap on the distance the veteran would have to travel if they fall into this loophole. And in my district, which includes veterans in Warren, Ohio, traveling 3 to 4 hours to a round-trip weekly, sometimes more than once a week, to receive treatment in Cleveland. And I was at my son's little soccer practice and I had a couple of vets at the same time grab me about this issue. The primary care physician or primary coordinator of benefits has independent authority to assign a veteran to travel an extreme distance with no limit established by the VA. Or they can refer them in the community of care to a local doctor, or they can elect to refer them to Choice. However, it requires a justification that there is an excessive burden on the veteran. And you mentioned in your testimony establishing a priority on transparency. However, I can't find, and my staff can't find, a readily issued pamphlet, flyer or billboard which would explain to our veterans what defines a burden that would make them eligible for Choice in this particular situation. I have cosponsored legislation with Representative Stefanik and Dr. Ruiz to correct this issue. So my question to you is: Do you have the authorities you would need to fix the problem? And what can we do quickly, instantly to provide more transparency and enroll our vets in the decisions for their care? And if we can't fix it immediately, is there a legislative issue that we need to deal with? And I guess lastly, and more comprehensively, will the Choice 2.0 consolidation with Community Care correct this problem? Secretary Shulkin. Yes, well, lots of important questions that you have in that. So in designing a health care system, I would not necessarily have picked mileage and wait-time as my criteria for how to design the system. I understand why Congress did, and you know frankly, to put a National program up so quickly, I think it was a very well thought-out effort that Congress had. But now that we have had time to experience this, I believe a health care system should have a clinical basis to the way it is designed. So it is my intent in working with you to present an alternative to 40 miles and 30 days; in other words, to eliminate that and to replace it with something that makes sense from a veteran's clinical needs. So, to look at access and clinical quality as the alternative to geography and wait-time. Under the current system that we have, which is still having to follow the rules that were set by Congress, 40 miles and 30 days, we do, as you correctly said, have the ability to define excessive burden. What we found, quite frankly, right after I became secretary, was that we had put out five, sort of, bullet points about examples of excessive burden. The field had interpreted that as those were the only exceptions they could use. We have now clarified that. What we are trying to do is to get the veteran and their doctor, or their provider, to have an interaction about what excessive burden is. And we have now loosened up the requirements so that the field can make reasonable judgments about excessive burden. Because some of the examples, like the ones you are giving, really aren't acceptable. Mr. Ryan. Right. Thank you, Mr. Chairman. Mr. Dent. At this time, I would like to recognize the gentleman from Nebraska for 5 minutes, Mr. Fortenberry, vice chairman of the subcommittee. Mr. Fortenberry. Thank you, Mr. Chairman. Secretary, welcome. Secretary Shulkin. Thank you. Mr. Fortenberry. Are you enjoying the new job? Secretary Shulkin. Yes, thank you. Mr. Fortenberry. Well, apparently you are and I am grateful for your projection of an attitude of entrepreneurship and innovation, as well as compassion for this essential mission. So thank you very much. Secretary Shulkin. Thank you. I appreciate that. PUBLIC-PRIVATE PARTNERSHIPS Mr. Fortenberry. In your opening statement, you also referenced the new idea that has emerged that has now been empowered by legislation, of a unique public-private partnership that is going to happen in Omaha. I want to unpack that a little bit more for the committee, just so that everyone understands how potentially transformative this could be. The community wanted to go on the point--community leadership came to congressional leadership and said, you know, we have built housing for veterans; we have built housing for troops. Could we possibly participate, through some charitable entity in updating and upgrading the hospital there which is in serious need of not only a facelift, but serious innovation-- modernization. So working with my predecessor, Congressman Brad Ashford, we got the empowering legislation to you. The community has committed about $30 million to build upon the money that had been set aside for a new hospital, about over $50 million. And we are going to move forward. I think it is exactly the model of what you are talking about in terms of creating the 21st century architecture for a modern VA that is looking to community resources when available to go, not just into looking for charitable funds for donation purposes, but an integrated service environment as you referenced earlier. This new facility will be an add-on to the existing hospital, ambulatory care facility; be proximate to Creighton Med School, as well as the University of Nebraska Med School who you already work with. So the synergies of their design will become a bit seamless, or as we say, non--the veteran won't know the distinction between the type of care that they are getting. They are just getting the best possible care under VA auspices using private sector resources, charitable monies that have gone into the clinic, because that is the objective. So, I wanted to spend a little time just unpacking that further, and hopefully, given the very difficult, sad experiences we have had with watching burgeoning cost overruns, the Denver hospital being the poster child, that this way of proceeding forward is undoubtedly going to tap into a large pool of good will that exists out there in the country among charitable organization and leadership in various communities, to want to assist you in modernizing, innovating and creating the types of partnerships that utilize the best of the private sector, but always under VA's auspices. So I am excited by this, and I am sorry to spend so much time on it, if you want to comment on that. I also want to mention 50 miles down the road in Lincoln, we have a traditional, beautiful campus for a VA clinic. A similar type of dynamic is occurring where a charitable foundation with the city has agreed to build out veterans' housing on the site of the old clinic. We are awaiting the decision as to what is going to happen with the new clinic. So if you could give us some update on that process, that would be helpful. But again, once again, the synergies being created with existing facilities, preserving traditional, beautiful architecture in proximity to the city's own private sector medical resources, again is a new opening dynamic of what I hope is a new chapter of the VA. RECREATIONAL THERAPY Third point, right quick. I have become aware and a little bit involved with a charitable organization called Project Hero. Your under secretary, Dr. Poonam Alaigh, has given a memorandum of understanding to your VA directors that they can partner with this organization using recreational activity, bicycling primarily, to be integrated into VA's services. Studies have--there are metrics on this already showing improved health care outcomes, lower costs, sense of well being, drops in suicides. The study comes out of Georgetown. Again, I just wanted to highlight that for you because I think this is one of those types of programs consistent with what I said earlier. It has been developed because of compassion and initiative by the private sector, looking to partner with the VA. And we have got a great opportunity here. PUBLIC-PRIVATE PARTNERSHIP Secretary Shulkin. Right. Well, thank you. Just briefly on your three points. The project in Omaha, Nebraska is exactly what I think we are looking to do in the VA, which is do things differently. In this case, we are going to build a new facility. It is going to be good for veterans and absolutely good for taxpayers. This is going to leverage the federal dollars in ways that in the past we wouldn't have been able to do before. And if it really wasn't for your leadership and support in getting this through legislatively and the whole way through, it wouldn't be happening. So I think this is a transformative model. We have four other sites that you authorized after Omaha, Nebraska, that we can do. So I am hoping that other committee members are listening because we have a list of 20 sites that now are eligible for this. I think this should become the way that we build a future modern health care system, so thank you for your leadership again on that. LINCOLN, NEBRASKA CLINIC Secondly on Lincoln, absolutely we are moving forward with a new clinic there. It should be awarded this fall and through the whole build and design process, even though I pushed really hard, probably the opening gate is going to be in early 2020. So it takes a while to do this. But that is well underway and it is really towards the top of our list. RECREATIONAL THERAPY On your third point about Project Hero, you know, one of the great things about VA is--is that it defines health care much broader than just physical illness. It defines it as physical, psychological, social, economic, and an example of using sports and adaptive sports to help people get better and have a sense of well being is something that frankly VA taught me a lot about. And this is a great example. And so we are very supportive of this and other work around the country like this, and thank you for bringing this to our attention. Mr. Dent. Thank you, Mr. Fortenberry. At this time, I will move into our second round of questioning and I will start. CHOICE PROGRAM FUTURE FUNDING Dr. Shulkin, in the one-page fiscal year 18 skinny budget we received in March, there is a VA request for $2.9 billion in new mandatory funding, presumably to complete the fiscal year 2018 funding for the Choice Program, after the mandatory $10 billion of the program is completely exhausted in January. Does this indicate the administration's intent to fund the successor Choice Program with mandatory funding? Secretary Shulkin. Yes. Mr. Dent. Okay. Next question. Being an appropriator, I always try to keep my eye on the bottom line of new initiatives. I am aware of at least two proposals. While we certainly support them from a policy perspective, our budget antennas are on alert. OTHER-THAN-HONORABLE DISCHARGES You have announced that you intend to provide emergency health services to veterans who have other than honorable discharges. You have also testified in the Senate that you are interested in expanding caregivers--to veterans from before the post-9/11 era. How do you plan to fit these added costs into your budget when you are obviously already struggling to cover expenses for your current VA patients? Secretary Shulkin. Chairman, maybe this doesn't fit into the budget but basically, I don't care. [Laughter.] I sat in a session that was organized by members of Congress, members of the House, where there was a young man who sat right in the Capitol Rotunda who said that he had been deployed to Afghanistan six times. And on his return, he found out that his wife left him. And so he took off across the country to try to find her. He was declared AWOL and other than honorable. You could see he was suffering from severe mental and emotional disorders. And he went to a VA and he shows up at a VA and says I am here because I need help, I am suicidal. And the VA says, I am sorry, you are not a veteran. Well, he had served our country six times--six tours. That is just not acceptable. When we say that there are 20 veterans taking their life every day, we know it is this group that is among the highest. No one wants to help them. Well, I am not just going to sit by. So I don't want more money for this. We are going to find a way to help these people and then connect them in the community to resources and get them help because that is the right thing to do. So I am going to find the way to do that because I think this is our---- Mr. Dent. That is a very compelling story and I am glad you are taking that initiative. Secretary Shulkin. And I am sorry, Chairman, what was the-- what was your other question? Mr. Dent. Caregivers. CAREGIVERS PROGRAM Secretary Shulkin. Caregivers. Yes. So--so the Caregivers Program is really, really important. We were authorized to be able to do that for post-9/11 veterans and there have been tremendous successes. But we frankly didn't get this program right. We have been issuing in some areas up to 90 percent revocations of caregivers that we had authorized. Something is wrong there. So we just issued a national suspension of revoking caregiver status and we are now in a pause where we are going to look at what are the right policies in order for veterans to get access to caregivers. It is our intent to be able to bring this to pre-9/11 caregivers because frankly, the most vulnerable group right now are elderly veterans. And the worst situation is when somebody is in their home and they have to leave their home to go to an institution--a nursing home. Because, one, most veterans don't want that; most people don't want that. And secondly, it is the most expensive way to care for elderly people. If we can keep them in their home with caregivers, we should be doing that. So we are looking at how do we use the current money and potentially come up with even better policy than what we have today. And we are going to be announcing that in probably the next couple months. Mr. Dent. Thank you. SCHEDULING SYSTEM The VA's antiquated scheduling system has been a particular concern to you, I know. We understand you are on a dual-track to modernize it, piloting a commercial system MASS, as well as upgrading your existing system. I guess you call it VSE. It seems like these efforts might lack a unified strategy. Why are you interested in investing in two systems simultaneously? And will the scheduling system be further tinkered with in the electronic record overhaul? Secretary Shulkin. Yes. On the surface, I agree with you. This makes no sense at all. Why would you invest in two different paths. We awarded a commercial off-the-shelf product called MASS. That is the system that we think meets our solutions and that is the one that we are implementing. We are working right now on a pilot site to be able to create the interfaces so that we can do that. The rollout of that across a system as big as ours is going to take several years. In the meantime, we had developed an internal system, one of the, frankly, last I hope that we ever develop, but this one is developed already with taxpayer dollars. And we did an evaluation in the month of February. We have rolled it out to eight sites. It is actually working. It is much better than what we have right now. So as an intermediate stop-gap measure, we are rolling it out across the country because it has already been developed, and it will help in that intermediate period of time until we can get a commercial off-the-shelf system up. Mr. Dent. Thank you, Secretary Shulkin. At this time, I would like to recognize the ranking member for 5 minutes in a second round. MILITARY SEXUAL TRAUMA Ms. Wasserman Schultz. Thank you, Mr. Chairman. I want to focus on military quality of life, because at that hearing that we had in March when we had an opportunity to meet with the senior commissioned officers, we discussed the Marines United scandal, which we discussed in my office yesterday. Many of the victims of that really horrific social media site are now veterans. And I have met with a number of them, as have many of the women members. And I would like to know what the VA is doing to provide them with the necessary care and support they need, because these are women who have had, you know, without their permission nude photos of themselves posted. They have been subject to extreme humiliation. With regard to the military sexual trauma system that the VA has, how have you let veterans know that this service is available and what outreach have you had? Secretary Shulkin. The VA has an extensive system for treating military sexual trauma. We actually have worked with the Department of Defense so that the VA is a place where people can go confidentially and get treatment. Women or men who have suffered military sexual trauma can come into any of our Vet Centers and there will not be a connection of their medical record back to the Department of Defense. Ms. Wasserman Schultz. Mr. Secretary, and I appreciate that, but specifically what kinds of outreach are you doing to not only make sure that victims of sexual assault in the military are aware of those services, but also specifically the victims of the Marines United scandal? Secretary Shulkin. When we met in your office, you actually suggested that that is something we should be doing. I don't believe that we have done that. I agree with you it is something we should be doing. And so as a result of our conversation, we are putting together a plan for that specific outreach. So thank you for that suggestion. Ms. Wasserman Schultz. Okay. No, you are welcome. I mean, we have female veterans that are committing suicide at a rate of six times that of women civilians. And, you know, identifying ways and implementing strategies to address the unique mental health needs of women is critically important. And so I would appreciate it if you and your staff would follow up with us on that. Secretary Shulkin. Yes. [The information follows:] VA is committed to assisting the individuals affected by the Marines United issue to the fullest extent possible. Since becoming aware of this situation, staff in VA's national MST Support Team has reached out to colleagues in DoD Sexual Assault Prevention and Response Office, leadership in the Services' Sexual Assault Prevention and Response programs, and DoD Health Affairs to remind them of the availability of MST-related services through VA. VA's current MST treatment authority (provided by Sec. 1720D of Title 38, United States Code) requires that sexual assault and sexual harassment experiences occurred while a Veteran or Servicemember was on active duty, active duty for training, or inactive duty training. As such, VA has concerns that the authority may not cover care for all individuals affected by this issue--for example, those incidents of harassment occurring after an individual has left the military. VA will continue to explore what is possible to provide under its current authority, in order to extend support to as many affected individuals as possible. SENATE-CONFIRMED POSITION VACANCIES Ms. Wasserman Schultz. The other question that I wanted to touch base on is what I mentioned in my opening remarks. And that is the--the openings--the really significant and serious openings that you have in all of your Senate-confirmed positions. And you mentioned that you were going to be making an adjustment in how you fill those positions. But I am actually wondering, one, if there are any problems that the Administration is facing in identifying candidates for those positions. Are you having trouble filling them? And in particular, I find it extremely troubling that the Under Secretary of Health, the Assistant Secretary for Information and Technology, given the very serious problems we have talked about here today, and the Chairman of the Board of Veterans Appeals, are all positions that remain empty. What is the timeline for filling those? And do you have candidates that you are considering? And are you having trouble filling them? Secretary Shulkin. Well, I appreciate your concern about that. I am very impatient, and of course, I want my team in place. We have obviously very good career, acting professionals that are handling these right now, but I want permanent people in place. The Under Secretary for Health and the Under Secretary for Benefits--I am not sure if you are aware--it is mandated that we form commissions to actually search for those positions. The Under Secretary for Benefits Commission met approximately 10 days ago to go through candidates and are recommending several of them for me to see, and then me to recommend to the President. And the Under Secretary for Health Commission, I just saw the committee members appointed this morning. That will be going forward in the next probably two weeks as well. For CIO, I have met a number of candidates. We are vetting them right now, trying to move forward with an offer. And at the Board of Veteran Appeals, we are also trying to vet a candidate also. So, I hope that, you know, these processes, having gone through it myself, my own vetting process, 13 months, it takes too long. And we are looking to move through this as soon as we possibly can. Ms. Wasserman Schultz. Thank you, Mr. Chairman. I will have one in the third round. So I appreciate it. Yield back. Mr. Dent. Thank you. At this time, I would like to recognize the gentleman from Florida, Mr. Rooney, for 5 minutes. Mr. Rooney. Thank you. CHOICE PROVIDER PAYMENTS And Mr. Secretary, I just want to say that your office I guess is watching this hearing and has already gotten with my office regarding some of the issues that we are discussing with our constituents. And I want to give a shout-out to Mary Kay in Lake City. And if you are still watching, Mary Kay, I have another issue for you to work on. That is with regard to--a lot of my district is very rural. And, you know, I do have some of the coast, but a lot of the people that live in the district live in the countryside. And one of the issues they complain was with the Choice Program is that that is long wait-times. They are receiving complaints about long wait-times for VA appointments, referrals, payments through the Choice Program. And the payment and reimbursement process to the providers is difficult, probably exacerbated because it is rural. So we, you know, obviously, in that situation, you have smaller hospitals and clinics. And many of the providers that are technically participating in the Choice Program are refusing to accept Choice patients because they know that they will have to wait a long time to get paid themselves. So some providers that don't accept the Choice patients will only do so if the veteran agrees to pay for the services up front, and that leaves the veterans in that same bind they were in before Choice, which was either face the excessive wait-times at the VA facility with no option to obtain immediate care elsewhere without paying out of pocket first. And obviously, that is not the point, or that is not what we are looking to do. So, I mean, you as a doctor can probably appreciate, you know, what these people that want to take the Choice Program to help veterans, but they know that it is going to take forever to get reimbursed. It would be like, ``hey, will you pay me first, and then, you know, we will deal with getting reimbursed later.'' I don't know if that is the rationale, but it sounds like that. The OIG has criticized the VA's monitoring oversight for these contracts and reported that these contracts still don't have performance measures to ensure the contractors pay their providers in a timely manner. And the OIG made this recommendation January 30th of this year. So as you work to expand the Choice Program, how are you implementing the OIG's recommendations specifically with regard to timely reimbursements? Secretary Shulkin. Well, there is no doubt that this is an area of significant risk for us; that monitoring and making sure that the providers are paid is critical because of the issues that you are saying. The veterans are being put in the middle. I would not recommend that veterans put out money for this. That, as you said, is not the point of it. What we have done is we have done multiple contract modifications. We have actually advanced money to the third- party administrators. I have suspended the requirement that providers have to provide their medical records to us in order to get paid. We are improving our payment cycles through the Choice program, but it is not perfect by any means. We have to get better at our auditing of these processes. And those were the I.G. recommendations, and we are working on doing that. So this is a significant area of risk for us. In the reauthorization, or the redesign, of the Choice program, what we are calling Choice 2.0, we want to eliminate the complexity of this process. The private sector does not have to do the type of adjudication of claims that we do. They do auto-adjudication. They do electronic claims payments. We just are not able to, under this legislation, do all the things that, frankly, we know are best practices. That is what we want to get right in Choice 2.0. Mr. Dent. Thank you. At this time, I would like to recognize the gentleman from Ohio, Mr. Ryan, for 5 minutes. Mr. Ryan. Thank you, Mr. Chairman. It is nice of all you Pennsylvania guys to let an Ohio guy participate in this hearing. I appreciate that. Mr. Dent. We beat Ohio State last year, that is why. Mr. Ryan. Blind squirrel finds a nut every now and again, Mr. Chairman. [Laughter.] CHOICE AND COMPLEMENTARY MEDICINE Mr. Secretary, a couple of quick questions, one with regard to the Choice Program again. There are a lot of people who want to--and we have seen it--I have seen it in the last few years at the D.C. VA and other VAs, where you have Centers of Excellence, where there are all these complementary services that are being provided that are having--showing significant success in reducing pain, managing pain, reducing opiates, which is a huge thing for us to be able to do, providing these alternative approaches. And I just want to make sure, as we are moving to try to better administer the Choice Program, that these evidence-based programs are covered in the Choice program so that they can access, whether it is acupuncture or mindfulness-based stress reduction. I have seen programs like Project Welcome Home Troops, where they do a lot of breathing exercises with these veterans that are having transformative effects with their post-traumatic stress. Transcendental meditation is another one that they use. There are a lot of videos online you can watch where these vets that are on 10 or 12 prescription drugs, after going through some of these therapies that aren't traditional, I guess you would say, going down to two or three meds, which is a huge savings for us. And you are actually giving these vets the tools they need to be able to go out into the world and function and get a job and be productive members of our society. So I want to make sure, as we move with the Choice Program, that these--again, evidence-based programs are covered by the Choice Program. Secretary Shulkin. Yes. Those types of services and providers are part of the Choice Program. We are expanding the network so that we have more access to those types of providers. Mr. Ryan. Great. I think that is going to be a big thing, not just for the vets, but out in society as well. APPEALS MODERNIZATION The other issue is we are talking about dealing with the appeals process. And we had this conversation, again, yesterday. But the legislation currently is not going to affect the hundreds of thousands, almost 500,000 people who are already caught up in the stagnant appeals process. So I say this not to you, because I have already said it to you, but to members of the committee and to the public. I think it is important for us to figure out how we can help you start to reduce this backlog. How do we get more appeals judges, maybe out of retirement, to get into this program? Congressman Womack and I are already working on some legislation to be able to do that. And so, if your department can provide us with the necessary metrics that we would need to figure out how many, you know, retired appeals judges from the Board of Appeals do we need to get back in the system, even on a part-time basis, to start getting through this backlog, and so if you could make sure---- Secretary Shulkin. Yep. Yep. Mr. Ryan [continuing]. You get us that information. Secretary Shulkin. I appreciate that suggestion. At 470,000 backlog claims right now, so even after legislation was passed and we fix the process going forward, we still have that backlog. I appreciate your offer to work with us and see if there is a way to help with that. And we have already worked up some numbers we would be glad to share with you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Ryan. Great. Secretary Shulkin. Congressman Womack. Mr. Ryan. Great. Mr. Chairman, I think that is an important step for us, to try to dig into this 470,000 number. Is with the appeals that, some of them, are 30 years in the making. And for every additional piece of evidence or paperwork that they add, it just slows up the process. And we--I think we have got to make a concerted effort. Congressman Womack--I won't steal his term, but--was talking about a surge for judges to help dig through this. So thank you, again, Mr. Secretary, for all your leadership. We appreciate it. Thank you, Mr. Chairman. Secretary Shulkin. Thank you. Mr. Dent. Mr. Taylor from Virginia is recognized for 5 minutes. FRAUD, WASTE, AND ABUSE Mr. Taylor. Now I know that you are looking for efficiencies, and waste, fraud and abuse, and all those things. And I would like to just briefly touch on that. And I--but I--first, I want to applaud you for taking the stand and helping veterans that may have been dishonorably discharged, and some of that, because of effects and stresses that they had on their own personal lives and everything from war, quite frankly. That being said, even in our own VA, when we walk through it, and we we noticed and asked questions, and certainly saw that there were folks that were being treated there that may not be eligible via the system currently. So in a couple areas of Hampton, and it is in my letter to your office, as well, too--or e-mail, I think it is. It talks about how there are a couple of areas there where we--you have these veterans that are honorable, veterans--no issue. But, you know, when they need a knee replacement or something like that that is not service-connected, that they are not eligible for, that they may be getting treatment there in the VA. That is a huge cost, with zero reimbursements, potentially, from Medicare, Medicaid or their private insurer, whatever that might be. So one of the things that we sent in there--and I don't know if you--there is an active study for it now--is, if you exacerbate that across the whole VA system, that is significant dollars. And veterans, either knowingly or not knowingly, because this is not a politically popular thing to say--but I am a veteran and I don't care--if you know you are not supposed to be treated there, then you don't get treated there, because you are taking away from other veterans that should be treated. That being said, we want to take care of people as much as possible. But I am fearful that, in the political climate, that maybe the VA is seeing folks that aren't supposed to be there, that should be using their own private insurer, or whatever they are on, insurance-wise. So have there been any studies that are looking into that to figure out what is it that is costing the VA across the whole system? Secretary Shulkin. Yes. We absolutely have looked at this. As you know, there are--veterans are classified into eight priority groups. The first three, generally, are service connected. The next three, so four through six, are generally income related, low income. So, when you start getting to seven and eights, those are people that fall outside of that, and currently that is frozen. So not all veterans, as you are saying, are eligible for care in the VA system and so we are focusing on those that are service connected and lower income. So--and I think that is a-- -- Mr. Taylor. If I may? Secretary Shulkin. Yes. Mr. Taylor. Has there been any review, if you will, where that may not be the case? I know that we are focused on the folks that are supposed to be in the system--that is supposed-- that need care and everything like that. But has there been a review across the whole spectrum to figure out, in fact, if they are--I am not trying to say it is fraud necessarily, maybe, but in some instances it may not be. They just may not know otherwise. But have we had a report across the system to figure out those inefficiencies and what those costs are for the VA.? Secretary Shulkin. Yes. We know exactly how many people are in each of these priority groups. Mr. Taylor. Not the priority groups. I am sorry. I didn't mean to interrupt. Secretary Shulkin. Yes. Mr. Taylor. Not the priority groups, but I mean folks that aren't supposed to be getting care that are getting treated. Secretary Shulkin. Well, I am not aware of any veterans that are getting care there that shouldn't be. If they are, then we have to address that and stop that, because we do check, except in emergency care, you know, eligibility criteria when people come in. And if they are not eligible for care, we generally are telling them that. Now, you know, maybe you are aware of some situations and I would really like to understand that better, because I think you are correct in your assumption that our care needs to be focused on those that are eligible for care, particularly when we have access issues. So I would be glad to talk to you more about that. [The information follows:] Hampton VA Medical Center (HAMVAMC) VSSC Enrollment and User Data, FY2016 Non-Veteran/Humanitarian Patients = 1,095 Urgent/Emergency Care: HAMVAMC is compliant with the Emergency Medical Treatment and Labor Act (EMTALA) and accompanying federal regulations. EMTALA requires hospitals with dedicated emergency departments (ED) to provide a medical screening examination to any individual who comes to the ED and requests such an examination, and prohibits hospitals with EDs from refusing to examine or treat individuals with an emergency medical condition. HAMVAMC ED will provide necessary stabilizing treatment for emergency medical conditions within the hospital's capability and capacity. Stabilized patients who require additional care and are not eligible for Veterans Health (VHA) enrollment are appropriately transferred to a community- based hospital/provider. Some patients who are pending VHA enrollment determination may continue to receive VHA care until eligibility is adjudicated by the VHA/Health Eligibility Center (HEC). If a patient is later determined to be ineligible for VHA enrollment, VHA/HEC grants the patient a 60- day waiver period in order for the patient to provide additional evidence or documentation to support eligible-Veteran status. After 60- days and no supporting evidence, the patient will be appropriately and safely transitioned from VHA care to the community. I do want to just mention two things. First of all, our policy is for emergency mental health care for other than honorable, not dishonorably discharged. Dishonorably discharged we are not---- Mr. Taylor. Sorry if I misspoke. Secretary Shulkin. Yes. Yes. Okay. Mr. Taylor. But I do applaud you for--I know that there are a lot of wounds that are mental of course and---- Secretary Shulkin. Absolutely. Mr. Taylor. And I get that. I applaud you for those efforts. Secretary Shulkin. And the other thing I just want to mention is that your letter of March 29th, we did respond by April 6th. We actually made it in 14 days. There is additional information that your office wants on the protocols on the Veterans Crisis Line so we are providing that to you and certainly want to get you that detail. Mr. Taylor. Thank you. I appreciate it. Mr. Dent. Thank you, Mr. Taylor. At this time I guess we will move into a third round of questioning for those who remain. So with that, I thought I would just quickly touch on a couple of issues. OPIOID ABUSE PREVENTION First, Mr. Secretary, as you know we included $50 million in the omnibus appropriations bill that is going to be considered on the floor, I guess right now, for VA opioid abuse prevention and treatment efforts. We realize that the VA has really come a long way in opioid management efforts since the horror stories at Tomah, Wisconsin and the Candy Land doctor situation. What are the most effective approaches the VA has identified to keep severely injured veterans away from opioid dependency? And how are you channeling your funding to achieve those goals? Secretary Shulkin. Yes. Well first of all, thank you for that additional support. I can tell you it is money well spent. We have seen a 32 percent reduction of opioid use in the VA since 2010, but we have a lot more work to do. So this is really a good investment. I would say, very briefly, that the VA approach to this, and we are leading American medicine in this--I just published an article on this--is a multifaceted approach. One is veterans need to sign an informed consent when they go on opioids. Secondly, we actually monitor the profile of doctors so they can compare themselves to how other doctors are prescribing. Third, we mandate participation in the State prescription data monitoring programs. Fourth, we do academic detailing where experts go out and actually educate our clinicians on this. And fifth, we are suggesting strong alternatives to opioids and providing those like complementary or integrated medicine in our facilities. DISABILITY CLAIMS BACKLOG Mr. Dent. I would also like to ask you, too, on--this relates to disability claims backlog management issue. We were pleased to learn last year that the VA had reached an effective zero on the size of the disability claims backlog. And I know some claims are always going to exceed the target deadline because the VA is waiting for the veteran to produce some additional information. But you have brought that number down, I guess, from its peak of 611,200 in 2013. But we understand that the backlog is creeping back up because of your shift in workload priority from initial claims to appeal cases. We know that the burgeoning appeals caseload needs to be tackled, but this highlights the management dilemma you face. And I think Congressman Ryan touched on that a bit. What is your long-term plan to bring a balance between activity on initial claims and appeals workloads? Secretary Shulkin. Well, I don't think we are where we want to be on this. So we have to make continued progress. We are at 100,000 disability claims over 125 days and that needs to come down significantly. We are doing a number of changes to our processes. One is called decision-ready claims. That will allow a veteran to seek a much quicker resolution to their disability claims and give them a choice when they have all their information available to be able to do that. We are still advancing our technologies, moving towards a paperless system. We have 10 sites now that are completely paperless. That moves everything through faster. We are looking at a number of other alternatives to do that. So we do have plans to get this down and we are not seeking additional funds to do that. We see it through process improvements. Mr. Dent. Thank you. OFFICE OF AMERICAN INNOVATION And finally, Jared Kushner's White House Office of American Innovation has apparently chosen the VA as its first target to reshape federal bureaucracy by making it leaner and more effective. Has his office fanned out staff at the VA to analyze its operations and make suggestions at this point? Secretary Shulkin. Yes. We are in close contact with Mr. Kushner's office. They have been extraordinarily generous with their time. And what they have really been doing is trying to bring industry partners and industry best practices in to help the VA. So I don't think that they are staffed to come in and do their own assessments, nor do I think that is their intent. It is more to identify solutions that already exist in the private sector and bring them in and modernize our system. Mr. Dent. Well, thank you for sharing that. AGENCY REFORM PLANS All federal agencies have received an executive order to reorganize their departments by September, in line with their fiscal year 2018 budget cost-cutting proposals. Your acting deputy has said that the VA would like to get started sooner than that. What changes do you expect in the way VA is organized and how it operates before the end of the year? Secretary Shulkin. Well, we are underway with this right now. I think, although I don't know all the specific solutions, because we are still working on it. I think what you should expect is that we are looking to have a smaller central office function, more streamlined. We are looking to move towards more shared services rather than siloed services in each of our administrations. And we are actually looking across federal agencies to see other things that maybe other agencies are doing better that they should be doing for us or vice versa, whether VA should be taking on some of the functions that other agencies are doing. We are working with other secretaries on that. Mr. Dent. Thank you, Secretary. That completes my questioning. And at this time, I will recognize the ranking member for 5 minutes. Ms. Wasserman Schultz. Thank you, Mr. Chairman. VETERANS CRISIS LINE I wanted to just ask you about the Veterans Crisis Line, because when we went to the D.C. VA hospital, we had a rather confusing conversation with their personnel that made it evident that there were a number of serious issues with the decentralized nature of the Veterans Crisis Lines--there being a National hotline, as well as a hotline at each hospital. And so the I.G.'s report that came out highlighted how significant the concerns are. And within days of the I.G.'s report, the VA said that the issue had been fixed. Can you explain how fixed it is and what does that mean? And what you are doing to ensure that our veterans are absolutely able when they are in crisis because of the risk of suicide being so high, are able to get the services that they need. Secretary Shulkin. I apologize for the confusion. There is only one centralized Veterans Crisis Line. Each of the medical centers do not have decentralized crisis lines. What the I.G. was referring to was the fact that when the VA responders on the Veterans Crisis Line receive more calls than they could handle, they went to backup centers that were located around the country. Those backup centers are certified SAMHSA backup centers, so they are trained responders as well, but they are not VA responders. We did not think that was satisfactory. So several months ago, we went out--we hired over 200 new responders, had to get them trained. They came online in the early part of 2017. We opened up a second center in Atlanta, Georgia. And now because of these new responders and the second center that is online, we are able to handle the calls that are coming in. We have less than a 1 percent backup center rollover rate at this point. That is why we came out and said that we fixed that problem. We have many days where we have zero rollover calls. Probably in the last 2 months, we average, you know, less than 10 rollover calls on a given day. We are responding to over 2,000 calls a day to veterans in crisis. We typically will send out 60 to 65 emergency responses to save veterans' lives. Ms. Wasserman Schultz. When we were at the VA hospital here, they described a system that was one that was based with their personnel, and one that kicked to the National system when it was after hours. Secretary Shulkin. Well, every--every VA has a mental health service. We have same-day services available. So if a veteran calls and is in crisis, they will be seen that day or their issue will be dealt with that day. So that does happen. Every one of our medical centers has a suicide prevention coordinator. Many of them more than one. That is there to deal specifically with the follow-up issues and to address people in crisis on that day. But there is only one National veteran crisis line, and that is run out of two locations in upstate New York and one in Atlanta. Ms. Wasserman Schultz. Do they all receive the same training? Secretary Shulkin. They all--well, as I was explaining to the congressman, the Veterans Crisis Line responders all receive the same training because they are licensed health care professionals. And the suicide prevention coordinators all receive the same training, but different training than the Veterans Crisis Line responders because they are not all credentialed or licensed mental health professionals. OFFICE OF AMERICAN INNOVATION Ms. Wasserman Schultz. Okay. And then you mentioned the reorganization and Jared Kushner's office's goals. Are those goals aligned with yours? Are you waiting for Mr. Kushner's reorganization recommendations before you begin hiring? Secretary Shulkin. No, no. Again, the American Innovation Office is not intended to come in and do assessments and give recommendations. That is the executive order has asked the department to do that. So that is what we are doing. Mr. Kushner's office is helping us in identifying industry best practices and strategic partners that can help us advance these modernization goals. DISABILITY CLAIMS AND APPEALS BACKLOG Ms. Wasserman Schultz. Okay. And then just as I run out of time, on the Board of Veterans Appeals and the backlog and the issue of the disability assessment backlogs as well, are you aware of online electronic technology that exists that previously had contracts with the VA that no longer do? And that could significantly address some of this backlog? Secretary Shulkin. No. Ms. Wasserman Schultz. Okay. I would like to follow up with your office so that you can be aware of this technology. And while I have no preference for any particular contractors, the timeline and story that I have heard about the process that they have gone through leaves me frustrated that we have a massive backlog and a potential avenue to help address it, but no way in for a contractor like them to actually be a part of it. Secretary Shulkin. No--thank you, I would like to hear about that. Ms. Wasserman Schultz. Thank you. I yield back. Mr. Dent. At this time, I would like to recognize the gentleman from Virginia, Mr. Taylor. Mr. Taylor. Thank you, Mr. Chairman. I just wanted to say before I give my question, you are correct. We had the letter. I have it right here, so maybe I misspoke in terms of, you know, getting the answers. You know, yes, you responded. So the office responded. Secretary Shulkin. Right. I am just glad we responded. Mr. Taylor. Sure. Thanks. I look forward to working with you on this. FUTURE DEMAND ON VA Continuing with the budget and, like I said, I understand that you are looking for efficiencies. And you mentioned earlier about 32 percent of the care being outside the walls of the VA, which is a 62 percent increase in 2 years. Right? So, what is your office doing in terms of looking at inside and figuring out, yes, if we are looking at, and you are asking for the monies for Choice and to fully fund that in the mandatory--in the budget, that trajectory is pretty high. Right? So what are we looking internally in terms of reducing the budget internally, if the care is being seen there? Are you just seeing complete demand exploding? Secretary Shulkin. Yes. I think the reason why we got into the crisis in 2014 is because we were not being honest about what the real demand is. And once we opened up both internal access and community access, we started to see what the real demand is. So I think that we are reaching I believe--hope to be reaching a steady state where we are not going to see continued growth in the way that we have in the past, but that we are meeting the health care needs of our veterans and honoring our commitment. Mr. Taylor. Okay. Thank you. VACANT AND UNDER UTILIZED BUILDINGS And the--back to the 735 under-utilized--do you have a rough idea what the cost is that you guys are spending that you don't need two per year on that. Secretary Shulkin. Yes, and in fact I have a chart that I gave to each of you, showing you where these are. But the cost of the 435 buildings right now that are vacant is $6.7 million a year. Our total cost is approximately $25 million a year for all these buildings. SUICIDE PREVENTION TRAINING Mr. Taylor. All right, thank you. And then, jumping back-- and I appreciate that, thank you. Jumping back to the suicide-- and you mentioned the two different folks that are trained---- Secretary Shulkin. Yes. Mr. Taylor [continuing]. On suicide. So it is my understanding that--like Hampton, for example--Hampton VA, there is a call center that mans the suicide prevention hotline--or the suicide hotline, is that correct? Secretary Shulkin. No. No, the suicide hotline is a National hotline. The--you know, during business hours, the Hampton VA would be there to assist veterans in crisis. The National hotline is run out of our upstate New York office. And now, in Atlanta, they have a second office. Mr. Taylor. So I was in a contractor's office as well, too. And they said that they were the call center for the Hampton VA. Secretary Shulkin. Well, I am sorry. The--the VAs or--and, in some cases, the VISNs run a call center. They do not run the crisis line. They run regular calls that come in and want to be, you know, ask for appointments or get to certain places through a telephone operator. We do run call centers across the country. But they are--it is not--we only have one 800 number for our Veterans Crisis Line, and that is run out of upstate New York and in Atlanta. Mr. Taylor. So that--the Veterans--I am just trying to understand. Secretary Shulkin. Yes. Mr. Taylor. So the Veterans Crisis Line--and then--but if I call the Hampton number, say I am suicidal-- Secretary Shulkin. Right. It will say, ``dial 7''. Right, the Hampton VA call center, what it will say is, ``welcome,'' and, ``if you are having issues related to suicidal ideation''--they use better words than that--``please dial 7. You will automatically be connected to our National Veterans Crisis Line.'' Mr. Taylor. Okay, thank you. And I have no further questions. I look forward to working with you. Thanks for your time. Secretary Shulkin. Thanks. Ms. Wasserman Schultz. Mr. Chairman. Mr. Dent. Sure. Ms. Wasserman Schultz. I thank you. Just I really think that, if we are having a hard time understanding how the Veterans Crisis Line works, then imagine how veterans must feel. I don't think it is clear how it works and what happens from beginning to end, every hour of every day. I think--I am glad that you have an additional, you know, service center that has your employees staffing it. But I don't understand the difference between who handles suicide--suicide calls on the Veterans Crisis Line and other mental health calls. I don't understand how it works when you are outside of business hours. I am confident that there are different crisis lines that are at local VA hospitals, because we were told that they had people working at the D.C. veterans' hospital that handled that, and that it only went to the Veterans Crisis Line when they weren't open. So if you could provide, later, greater clarity, that would be helpful. Secretary Shulkin. What--this wouldn't be the first time that I have learned information that, then, I would agree with you. I would be confused, too. I think I have an understanding that is clear. But, please, let's make sure that it is the correct understanding. And I do want this to be clear. There should be no doubt how a veteran gets help when they are in crisis. And obviously, if we are not communicating that well enough, or if there is a system that I don't understand, I appreciate you raising that, and I will get back to you on this. Ms. Wasserman Schultz. Thank you. Especially because we---- Secretary Shulkin. Yes. Ms. Wasserman Schultz [continuing]. Have lives at stake. Secretary Shulkin. Of course. Ms. Wasserman Schultz. Thank you very much. Mr. Dent. Thank the ranking member. At this time, I would like to recognize Mr. Fortenberry for 5 minutes. VACANT AND UNDERUTILIZED BUILDINGS Mr. Fortenberry. Thank you, Mr. Chair. And thank you again, Mr. Secretary, for listening to me earlier and, of course, embracing the transformative ideas--what I believe to--and you believe to be are transformative ideas that are kicking off in Omaha. And in this regard, as well--Congressman Taylor actually touched on the question, and others have, as well--but back to the idea of excess inventory. For instance, the Air Force is going to come here shortly and tell us they carry 30 percent excess inventory. And while yours is, in terms of cost impact, much, much lower, nonetheless, that is not a good use of dollars. Now, we throw around the word BRAC. I highly suggest that you do not use that term. But what we can do is work with you, I think, constructively--maybe you already have this option in law--to, for instance, sell excess buildings to the community surrounding you. Look at the types of services which the military is starting to do--now, this is a little more applicable to bases, but nonetheless, it might apply to you-- that can be contracted over--given over to local communities. That includes like, landscape maintenance for military bases, firefighting, some security as well. These are the types of ideas that go toward the possibility of not pulling forward things that are no longer applicable in an innovative VA without running into the difficulties of impacting communities adversely when you close something. So don't ever use the word BRAC, because it brings up a lot of bad memories. And it--you automatically set yourself up for controversy. I have suggested to the military that we call it MISC, acronym for miscellaneous--Military Installation Savings Commission. Maybe you can work on some word--acronym like that. But it is a, again, I think it is very consistent with what you are trying to do in terms of updating the VA.---- Secretary Shulkin. Yes. Mr. Fortenberry [continuing]. Getting the best value for the dollar, ensuring that old ways of thinking are transformed into new ways to care for veterans. And while we are pulling forward excess inventory, that just doesn't make any sense for what you are trying to do. So those are just some final thoughts I had. I know you have covered that, when I was out of the room, more extensively. So I wanted to leave you with that. The other issue is I think you are going to forward to us a working list of possible changes, one of which you brought up the other day. You are in a catch-22 regarding not being able to study things that we have actually mandated---- Secretary Shulkin. Right. Mr. Fortenberry [continuing]. You to study because we have mandated you can't study things. Secretary Shulkin. Right. Mr. Fortenberry. Ideas like that, even though they might be small--again, back to the transformative theme, we look forward to receiving those. Secretary Shulkin. Yes. Thank you. Mr. Fortenberry. Thank you, Mr. Chair. Mr. Dent. Seeing no further questions, I would like to thank everybody for their participation. Thank you, Dr. Shulkin. Again, I can see why you were confirmed unanimously. Congratulations, again. And this hearing stands adjourned. Any further subcommittee hearings will occur after the President's budget submission in late May. Secretary Shulkin. Thank you. Mr. Dent. Meeting is adjourned. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Wednesday, March 22, 2017. OVERSIGHT HEARING ON THE DEPARTMENT OF VETERANS AFFAIRS OFFICE OF INSPECTOR GENERAL WITNESS HON. MICHAEL J. MISSAL, INSPECTOR GENERAL, DEPARTMENT OF VETERANS AFFAIRS Chairman Dent Opening Statement Mr. Dent. Good morning, everybody. Thank you for coming out to this hearing, and I appreciate all your attendance. And since the full fiscal year 2018 budget hasn't arrived, we thought it would be useful to begin our VA hearings with a hearing focused on oversight issues. And the VA Office of Inspector General is really ground zero for oversight of veterans health and benefits. Mr. Missal, we are delighted that you are here, and we are glad the previous administration finally got around to making your VA IG appointment. I know that you were confirmed in April of last year, and so we were treading water far too long with an acting IG. And I understand you actually sought out this appointment, leaving the private sector to take this job, which is a very brave move, considering all the problems the VA has had and the volume of work that awaits you. We will be interested in the changes you have implemented to sharpen the focus of the IG's work in the areas you believe are most important in VA operations. We will include your full statement in the record and will appreciate your limiting your oral remarks to about 5 minutes. But before we ask you to begin, I will turn it over to our ranking member, Ms. Wasserman Schultz, for any remarks she might have this morning. Ranking Member Wasserman Schultz Opening Statement Ms. Wasserman Schultz. Thank you very much. It is good to see you again. Thank you for coming. Clearly, the Inspector General plays a vital role in ensuring that VA programs are implemented properly and that funds appropriated by this committee are spent wisely and in accordance with the law. And I really was very pleased with our conversation. It is very clear that you understand exactly what your mission is and are focused on it. And I look forward to working with you as we continue to address the issues that still persist at the VA and that we hold any and all bad actors accountable. We still have veterans waiting too long to receive both care and benefits, and it is well past the time for a cultural change at the VA and one that more vigorously embraces strong oversight. The Office of the Inspector General was integral in investigating and responding to the 2014 Phoenix scandal, and in response to this investigation, which uncovered numerous issues, Congress passed the Veterans Choice Act. The Office of the Inspector General was also crucial in examining the cost overruns at the Denver Medical Center, where the project costs increased from $604 million to $1.7 billion. Most recently, the IG has helped identify extremely troubling and wholly unacceptable issues at the Veterans Crisis Line. According to the report that was released this week, the Crisis Line continues to send nearly a third of its calls to outside backup centers. And I see that the VA released a new figure, that that is now at 1 percent, and I look forward to asking you about the discrepancy between what your analysis is and what this statement reflects. But that number was very significant, even in spite of opening a second call center designed to reduce that backlog. The concerns that I have about the Veterans Crisis Line already were confirmed by our visit to the D.C. VA Medical Center the other day, because during a presentation on mental health, we received conflicting responses on training and protocol for employees at the Veterans Crisis Line. Mr. Chairman, I know you agree that it is critical for the IG to have the necessary resources to conduct aggressive oversight and ensure that our veterans receive the health care they both deserve and need and receive such care in a timely fashion. No matter what steps the VA takes to address the challenges it faces in delivering health care, the VA will be unable to do so without proper oversight. Oversight and true reform lie squarely with Congress and the Inspector General, working together. Mr. Missal, I commend your work thus far, but I think we would both agree that there remains much to be done to repair both our veterans' and our Nation's trust in the VA system. And, again, thank you for being here today, and I look forward to working with you to address these issues. Mr. Chairman, I yield back. Mr. Dent. Thank you. I thank the ranking member. Let's go right to Mr. Missal. And we look forward to receiving your testimony. Please, you are recognized. Mr. Missal. Thank you. Hon. Michael J. Missal Opening Statement Mr. Chairman, Ranking Member Wasserman Schultz, and members of the subcommittee, thanks for the opportunity to discuss the oversight the Office of Inspector General provides to VA programs and operations. I have had the great honor and privilege of serving as the IG since May 2016, and today is my first opportunity to testify before this subcommittee. I would first like to thank the Congress for the increase in our fiscal year 2017 appropriation. Our fiscal year 2018 appropriation of $159.6 million will greatly assist our ability to fulfill our mission of effective oversight of the programs and operations of VA. Although I did not come into this role with any preconceived notions of specific changes to make, I stated to the staff on my first day that we will always strictly adhere to the following three principles: First, we must maintain our independence and make sure that we do not have even the appearance of any impairment to our independence. Second, we must be fully transparent by promptly releasing reports of our work that are not otherwise prohibited from disclosure. Third, we must maintain the highest integrity of our work. This means that each of our reports must meet at least the following five standards: It must be accurate, it must be timely, it must be fair, it must be objective, and it must be thorough. In the past 10 months, we have made or are in the process of implementing a number of enhancements to our operation. Several of these initiatives represent concerted efforts by us to focus on the high-risk areas throughout VA, with the goal of being more proactive in our oversight. I believe that these changes will enable us to perform more impactful work in a timelier manner. We are a relatively small office compared to other Federal OIGs as a percentage of both the agency's full-time-equivalent staffing and budget. We are comprised of approximately 725 full-time employee equivalents organized into five major directorates: Investigations; Audit and Evaluations; Healthcare Inspections; Contract Review; and Management and Administration. About 225 employees are based in Washington, DC, while the remaining 500 are dispersed throughout our approximately 40 field offices nationwide. Since fiscal year 2014, we have received approximately 39,000 contacts to our hotline annually. Each year, we average about 350 reports and other work products, 475 arrests, 330 convictions, and $3.125 billion in monetary benefits. Our return on investment averages $30 for every $1 expended on our oversight. This is a strong return and supplements the inestimable value we bring by helping VA improve its health care and benefits services that impact so many lives. We crafted our fiscal year 2017 appropriation with the intention and hope that it will be the first of several tiered increases to right-size our office over the next several years. The expansion plan would increase staff to 1,160 by fiscal year 2021 and bring us to a level more equivalent with the increase in staffing and resources at VA and comparably situated OIGs. In consideration of the hiring freeze and the administration's anticipated efforts to scale back the size of the Federal Government, we reduced our fiscal year requirements by $27 million from the $197 million figure submitted last year as part of our 3-year expansion plan. Our budget request for fiscal year 2018 of $170 million, coupled with the anticipated fiscal year 2017 carryover, will cover the costs of normal inflation assumptions and at least 100 additional staff over fiscal year 2017. The administration is proposing to straight-line funding for 2018 and 2017 enacted levels for a number of VA discretionary programs. Under this scenario, our fiscal year 2018 budget would be $159.6 million, the same as 2017. This funding level overlooks potential inflation costs of at least $3 million for staff pay raises and infrastructure. Although we do not project that our operations would be adversely impacted at this funding level for 2018 because of available carryover funds, for subsequent years we would likely need to request a significant increase to our current funding to maintain current operations. In conclusion, with continued support from Congress, we look forward to increasing our ability to conduct impactful oversight of VA programs and operations for the betterment of our veterans, their families, and American taxpayers. Mr. Chairman, this concludes my statement. I would be happy to answer any questions that you may have or other members of the subcommittee. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Dent. Thank you very much, Mr. Missal, for your testimony. PROBLEMS WITH SUICIDE HOTLINE Last year, the IG issued a report that was fairly damning in its critique of the operations of the Veterans Crisis Line, the suicide hotline, VA's major tool to prevent veteran suicide. At that time, VA countered that the IG report was using old data and the agency had made improvements to its operation, adding substantially more funding, installing new leadership. But the followup IG report issued on Monday suggests that the VA is still having significant problems with the suicide hotline. The new leadership has already left; the secondary site in Atlanta is understaffed; clinical guidelines are not being transmitted; quality-control measures are not being implemented; and staff lack training. Do you think the VA has made any progress in improving the performance of the hotline since last year? Mr. Missal. We took a look at the hotline and did our review beginning in June of 2016. I would note that there were seven outstanding recommendations that were still open from our February 2016 report. They were scheduled to be completed, according to VA's plan, by September of 2016. Those 7 recommendations from our last report remain open, as well as the additional 16 that we had here. So I guess I would say that there are still many significant issues that we found with respect to the VCL. Mr. Dent. Members of Congress were very concerned last year, so we included language in the bill requiring the VA to maintain suicide hotline standards consistent with the guidelines of the American Association of Suicidology. POSSIBLE VIOLATION OF APPROPRIATIONS LAW At that time, VA had assured us that the hotline met those guidelines. And with your new report findings, do you think that the VA is in violation of our appropriations law? Mr. Missal. I don't know if I can make that assessment. We didn't look at it quite that way. We identified a number of the shortcomings in the training, in governance, in staffing, in leadership, et cetera. And so I think we did raise some significant issues. IMPROVEMENTS IN SCHEDULING DELAYS Mr. Dent. There are some audits showing continued medical appointment scheduling delays that I wanted to discuss. Over the last 2 years, the IG has had the enormous job of auditing all the VA medical centers about allegations of scheduling delays and malfeasance. We understand that you have revisited some regions and have found that problems have been resolved in some areas but not in some others. What are the factors that have been key to improvements in some of these regions, if you could share that with us? Mr. Missal. I think, one thing I have found in the 10 months since I have been here is the importance of leadership at various levels. VA health care is a very decentralized operation, and what is pretty clear when you go to either medical centers or the VISNs, the regions that they have divided the country into, the leadership at those areas are really critically important to the performance of either the medical center or the VISN. VA'S ANTIQUATED FINANCIAL MANAGEMENT SYSTEM Mr. Dent. I would like to now move to the VA's antiquated financial management system. Your reviews of nine VA care programs revealed a morass of problems in financial accounting, timely payment to providers, and inadequate internal controls. A significant share of these problems seems to be associated with the antiquated financial management system VA continues to use after its previous efforts to replace it had failed. Do you think the VA's selection of the Department of Agriculture as its Federal shared service provider to deliver a modern financial management system will work for the VA where prior attempts for new systems have failed? Mr. Missal. That is something we are going to look at very closely. They had a number of material weaknesses and significant deficiencies in their financial statements this past year, which was an increase over the previous year. They made the commitment that they are going to go with a shared service model, and we will test it and see if it has any improvements. SHIFT TO COMMERCIAL/IT SOFTWARE Mr. Dent. Okay. And I would also like to just briefly mention the VA shift to commercial IT software for the health record. Secretary Shulkin has announced that he believes the VA should use commercially developed information technology software rather than continuing to build it in-house. From the OIG's review of VA IT, do you think this is the appropriate path for the VA to take? And with its current skill set, is VA capable of procuring IT and managing contracts sufficiently and diligently? Mr. Missal. IT has been a significant problem that we have identified in various programs and operations at VA. I heard the Secretary make that commitment, statement that he was going to go forward, and I think it remains to be seen whether or not that will be successful. RISK OF PURCHASE OF COMMERCIAL/IT SYSTEMS Mr. Dent. And can you just quickly elaborate on any risks? What are the risks that you see with the purchase of commercial IT systems for a healthcare system as enormous as the VA's? And how can the VA mitigate those risks? Mr. Missal. I think it is integrating those systems into VA. VA has a number of different IT systems and they need to make sure that they all work together. They have to make sure that they have the proper staffing, the proper training, and the proper funding to get it done. Mr. Dent. Thank you. At this time, I would recognize the ranking member, Ms. Wasserman Schultz, for 5 minutes. CHALLENGES OF VETERANS CRISIS LINE ROLLOVER CALLS Ms. Wasserman Schultz. Thank you, Mr. Chairman. Mr. Missal, I want to continue the chairman's line of questioning on the Veterans Crisis Line. You released a report on Monday---- Mr. Missal. Correct. Ms. Wasserman Schultz. This report addressed the challenges that the Veterans Crisis Line was experiencing, particularly with rollover calls to the backup call center. And that was in spite of adding the Atlanta call center, a second call center. There were significant percentages of rollovers, which is why I find it baffling that, a day later, the VA releases, you know, a statement saying that they have addressed it and that now their rollover is 1 percent. That seemed completely incongruous with your report and nearly impossible for it to have been resolved in 24 hours. So can you address that pretty significant discrepancy and whether you think that the VA has addressed the problems in the report? Additionally, when we were at the D.C. VA Medical Center the other day, it seemed very clear, to all of us that there is not uniform training across the board between local medical centers and the national Crisis Line training. And that also seems to be causing problems for veterans who are in dire need and could risk life. And, in fact, there has been life lost due to lack of training. Mr. Missal. Sure. Okay. With respect to the rollover calls, our inspection period covered the middle of June to the middle of December 2016. So we had the most recent data. I believe our last month was November of 2016. So we listed in our report all those numbers. The Atlanta operation was brought about to try to, among other things, limit the dependency on these backup centers. They started bringing it up in stages, beginning in the fall. As of the middle of December, it still was not fully operational. So we have not looked at it since that time, in the 3\1/2\ months or so since then. So I really can't comment whether or not their numbers are 1 percent or some other number. Ms. Wasserman Schultz. I think you can understand the doubt that I feel, given that the VA has already had a problem with fudging and altering data to reflect better numbers than reality. So do you have plans to follow up and actually take another look at the last few months so that you can confirm these numbers? Because it is hard to have confidence in these numbers, given their track record. Mr. Missal. Yes. There are 7 outstanding recommendations from our February 2016 report, 16 open from our current report. We consider both of those reports still open until we get satisfaction that they have met their commitments to complete those recommendations. So we will continue to look at the VCL, at a minimum, until those recommendations are fulfilled. CHOICE PROGRAM Ms. Wasserman Schultz. Thank you. Because there are literally lives at stake from getting it wrong. In my remaining minute and a half, I just want to ask you about the Choice Program. Your report found that veterans are still waiting months for appointments made through the Choice Program. I just went to my own Miami VA Medical Center, and they gave me a very glowing picture of how much the wait times have been reduced. But, according to your report, veterans covered by Health Net, which is where the Miami VA is, on average, waited 84 days to get an appointment--42 days for the authorizations to be provided and then another 42 days for the appointment to be scheduled and the service provided. So, first, why is it taking the VA 42 days to provide authorization? And why is it taking Health Net 42 more days after the authorization? Mr. Missal. Right. The numbers you are talking about relate to our report on VISN 6. What we had previously done is we had looked at a specific facility. What we decided to do is look more broadly. VISN 6 governs VA facilities in the Virginia and North Carolina. And the reason it took as long as it did was there was a lot of administrative issues involved in doing that. There was confusion. The rules for Choice are very complex, for example, who is eligible to qualify. And so the funding for Choice is expiring in the middle of August of this year. One of the things I think needs to be done is to make it as uncomplicated as possible so that it is easier to sign people up, that veterans know exactly what their options are, and that the third-party administrators can move people through the system more quickly. Ms. Wasserman Schultz. Thank you. I yield back. Mr. Dent. Mr. Jenkins is recognized for 5 minutes. Mr. Jenkins. Thank you. AIR QUALITY ENVIRONMENTAL CONCERNS Good morning, and welcome. The community outpatient clinic in Greenbrier County, as you well know, several years ago had complaints of air quality environmental concerns, both from employees and our veterans who were seeking care and treatment there. A report was issued by the OIG, and we had to go to bat to make sure that that CBOC continued, in a new location, in Greenbrier County. But can you go back, the status of your findings from that 2015 report--what actions has OIG done with regard to that report? Which I believe you all did find environmental air quality concerns at that CBOC in Greenbrier County. Mr. Missal. Right. We did note ongoing air quality issues in that CBOC in 2015. It was closed as you know. It was the VA's responsibility to fix it. We have not been back since then to look at it, but we are well aware that these are commitments they made, and they need to follow through on those. Mr. Jenkins. Well, that facility is closed. It is not being used. There is a new CBOC facility. So the old issues are going to be at that old facility; we are not there anymore. But the OIG, obviously, hopefully, takes these issues of complaints from patients, our veterans, and employees seriously on environmental air quality. So one of my interests is followup activities after that report has been issued. Mr. Missal. Yes. I would say that we have a very active healthcare inspection program, where we get around to the medical centers, some of the CBOCs as well. And environment of care is one of the areas we look at very carefully. So for every facility we go in, we check the environment of care for issues just as you raised. STATE PRESCRIPTION DRUG MONITORING PROGRAMS Mr. Jenkins. Second, under care of the addiction recovery relating to opioid abuse/misuse, there is a real emphasis, and it was in that legislation, asking the VA to start appropriately sharing the prescription information to State prescription monitoring programs, PDMPs. It is referred to in a lot of different ways. Most every State has one up and running. What is the OIG doing to ensure appropriate information- sharing from the prescription issuance on the veterans side, getting into State PDMPs so we make sure we enhance the quality of care, and also make sure we are avoiding diversion and not adding to the drug crisis, and opioid diversion problem? Mr. Missal. Right. Opioid misuse and other controlled substance misuse is a very great concern to us, and we have a very active program in this area. With respect to the PDMPs, we do have access to those. It is VA that can enter data. We can, though, see it, and we do use it on occasion in our work. With respect to opioid misuse/abuse and, actually, the stealing of opioids and other controlled substances, we have a number of investigations going on currently, and we have brought a number of cases recently which have resulted in jail time and other sanctions against individuals. Mr. Jenkins. Well, I understand a doctor at a VA will have access. They are an authorized recipient of data. They can tap in and look at the prescribing history. My question is, under CARA's direction to the VA, to have the VA actually submit information to State PDMPs, what is the VA doing about complying with that expectation? Mr. Missal. We haven't looked specifically at that. Given how decentralized it is, it is really going to be facility by facility to see whether or not they are complying with the rules. But that is something we are considering looking at more closely, because we agree, it is a major concern. Mr. Jenkins. Well, Bob McDonald, the previous VA Secretary, he said publicly multiple times the VA is going to start submitting their prescribing data to PDMPs. So I would encourage you--I appreciate your statement of, we are going to be looking into this. I think this is a priority issue, with an opioid crisis in so many parts of this country. I would hope you would move it from a ``we intend to look into it,'' because I do believe now there is actually a congressional mandate relating to the VA. And I think the OIG plays a key role in making sure that the VA fulfills its statutory obligation. This is back to this life-and-death issue, and we have to have better information systems. The VA has a responsibility, and I hope you will make sure the VA lives up to that responsibility. Mr. Missal. Yes, sir. We share your concern, absolutely. Mr. Jenkins. Thank you. I yield back. Mr. Dent. Thank you, Mr. Jenkins. At this time, I would like to recognize the former ranking member of the subcommittee, Mr. Bishop, for 5 minutes. Mr. Bishop. Thank you, Mr. Chairman. Welcome, again, to our distinguished IG. VA INFORMATION SYSTEMS VULNERABILITIES It is critical that we put measures in place to protect sensitive information and to defend against those who would seek to gain unauthorized access to that information. The VA has an obligation to safeguard the data that we hold on veterans, and I know that everybody takes that responsibility seriously. In your statement, aspects of the VA IT security have been continually reported, you indicate, as material weaknesses for some 17 years. Mr. Missal. Correct. Mr. Bishop. From my understanding, in the latest information security information audit, you recommended 35 actions that would improve the information security program. How many of those have been implemented? And what is your current assessment of the VA's vulnerability against cyber attack and ability to respond effectively to a successful attack? Mr. Missal. I don't have the precise information of how many of those recommendations they have implemented. We have talked to them frequently about this issue. We are just now starting our work for this year on cybersecurity and IT security, and we are going to be very aggressive in looking at it. And to the extent there are issues that we see as we are going through the audit, we will raise it again with them. We consider this very important, and hopefully they will make progress. Mr. Bishop. Can you submit that information to us in writing at a later date? Mr. Missal. Sure. Happy to do so. [The information follows:] In the OIG's FISMA report for FY 2015, we made 35 recommendations. During our work for FISMA in FY 2016, we closed five of the 35 recommendations from FY 2015. However, for FY 2016, we added three additional recommendations so we have a total of 33 open recommendations related to FISMA. We also perform other IT security related work and currently recommendations remain open in two other reports: ``Review of Alleged Transmission of Sensitive VA Data Over Internet Connections''--Issued on March 6, 2013--Recommendation 1 remains open. ``Review of Unauthorized System Interconnection at the VA Regional Office in Wichita, Kansas''--Issued on April 6, 2017-- Recommendations 2, 4, and 6 remain open. Mr. Bishop. Thank you. PROCUREMENT DEFICIENCIES In your statement, you noted that the VA has systemic deficiencies in all phases of its procurement process. From your assessment, is it that the VA does not have the proper policies and procedures in place, or is it that they are not performing in accordance with the procurement standards? Or is it both? Mr. Missal. Procurement is an area that we feel is one of our priorities, because of the amount of taxpayer dollars at issue here. And what we have found is both. We have found both policies and procedures that are not up to what we would expect, and we have also found situations where they haven't followed the policies and procedures as well. COLLECTING RACE AND ETHNICITY DATA Mr. Bishop. On another subject, after reviewing the 2016 Advisory Committee Report on Minority Veterans, I am concerned the VA doesn't consistently collect race and ethnicity data. According to the Center for Minority Veterans, by 2040, minority veterans are projected to represent over a third of all of the veterans, despite the overall veteran population decreases. This is information that could be used to suggest policy reforms and recommendations to address the needs of an increasing minority veteran population, to include health disparities, academic affiliations, unconscious bias in hiring practices that may lead to a lack of diversity and specifically at the senior management level. Do you have any planned or any recent audits, inspections, or evaluations that focus on minority veterans and on women veterans? And if so, what are some of the recommendations, and how many of those remain open? Mr. Missal. We don't currently have anything on minority veterans. On women veterans, we are doing a national healthcare inspection to see the treatment of women veterans and how VA accommodates women veterans. That should be released shortly. I recognize the importance of all the issues you raise. And that is something, as we are looking at our workload going forward, it is something we will consider. Mr. Bishop. How can we make sure that the VA collects data on race and ethnicity so that we will have the data from which to make assessments? Mr. Missal. I am not aware of what process they have in place and what they are doing in that area to know. But, obviously, they should have policies and procedures for any program that they have. And that would be something, if we looked at that, we would focus in on the policies and procedures and how they are implementing those policies and procedures. Mr. Bishop. I was told that the VA does not collect data on ethnicity. So, for example, I couldn't ask you how many black veterans you have or how many Hispanic veterans you have or how many Asian veterans you have, because the VA doesn't collect that kind of data. And what I am suggesting is that we need to collect data in those categories. This data would assist you in your audits; it would assist us in our oversight. But we don't have that information. Perhaps you can make recommendations on what we need to do to get that information or if we can just ask for it. Mr. Missal. Sure. We can look into that, certainly. Mr. Bishop. Thank you. My time has expired. Mr. Dent. Mr. Valadao. Mr. Valadao. Thank you. Thank you again for taking some time today. And I know we are hitting on the wait times quite a bit, but I do want to follow up on that a little bit. PATIENT WAIT TIMES The VA publishes a bimonthly patient access report for all VA medical centers and community-based outpatient clinics, which include information such as average wait times for veterans enrolled in the Veterans Health Administration. Currently, the VA medical center in Fresno, California, represents an average wait time of 12 days to see a specialist. However, I am hearing from constituents of mine all the time who report waiting a couple of months or more to get in to see the doctor. While I understand that 12 days is the average wait time, there is a big difference between 12 days and 2 months. In your experience, do you believe the average wait time data in the bimonthly patient access report accurately reflects the wait times that veterans experience? Mr. Missal. I haven't looked specifically at those, but what I can tell you is, in our VISN 6 report, where we looked at wait time across a large group of medical centers in Virginia and North Carolina, that the wait times that we calculated were significantly different than the wait times that the facilities had and the VISN as well. It was not just one; it was a number of different facilities had significantly different wait times. It is somewhat complicated because there are so many different dates that they use to calculate wait times. And what we found is the policies that were in place at the time were not being followed, and that is why our numbers were so significantly different. Mr. Valadao. Okay. Is there anything we can do to improve that? I mean, should we mandate some sort of--I mean, I don't like mandates normally, but it seems pretty simple. If someone calls in to make an appointment and it takes them 2 months, where is the confusion? Mr. Missal. I think they need to simplify how they calculate wait times, the number of different measurements they have. I can't emphasize enough how important oversight is to make sure that when they have a policy and procedure that they follow it and they follow it accurately. ROLLOUT OF ONLINE SCHEDULING Mr. Valadao. And then there was a rollout in January 2017 of the online scheduling. Have you had any experience with it? Have you seen how it is performing? Any early indicators that show any progress at all? Mr. Missal. We have not looked at it. I understand it is a pilot, but we haven't looked at it in any kind of detail. Mr. Valadao. All right. Thank you. I yield back the balance of my time. Mr. Dent. At this time, I would like to recognize Mr. Ryan for 5 minutes. Mr. Ryan. Thank you, Mr. Chairman. Thank you for your service. The deeper I get into the Appropriations Committee, the more valuable I find what you and your team do, so thank you for that. OPIOIDS TREATMENT MANAGEMENT I want to just kind of continue on the line of questioning that Representative Jenkins was asking you about, CARA and opiate issues with regard to the VA. We also have reports in Ohio that were allegations of little or no oversight of the refills for opioids. Services other than medication therapy can reduce the need for opiates to deal with pain, as well. We saw in our trip a couple days ago to the D.C. VA Medical Center, they have a center of excellence, that they have done incredible work in the area of providing integrative medicine, and the clinic found significant evidence of decreased dependence on opioids through some of these techniques. A lot of these integrative treatments--yoga, meditation, acupuncture, art therapy--they are in very, very high demand. And I was surprised, because I went to the D.C. VA a couple years ago to look at these programs, and the scheduling a few years back versus the scheduling now, of people just being able to walk in and access some of this care, has increased significantly, which I think is--you know, the veterans are voting in the marketplace of what their options are there. So, when reviewing the recent clinical assessment program reviewed for Cleveland, Ohio's VA clinic, I don't see any mention of routine reviews for the opioid management or reviewing inclusion of integrative medicines. And the report on opiate addiction treatment protocols fails to recognize SAMHSA's inclusion of non-opioid options for treatment of opiate substance use disorders. This includes options such as non-opiate 30-day shots, which you know about, that is minimally invasive for veterans' lives and removes the high provided by opioids. OVERSIGHT FOR OPIOID PRESCRIPTIONS So my question is, what are we doing to appropriately provide oversight for these opioid prescriptions within the VA? And are we providing the appropriate amount of resources to the clinics to provide both the reduced opioid use within the realm of integrative medicine? Mr. Missal. Sure. We are doing a number of different things in this area. First of all, in our inspection program, we change up the various areas that we look at just so we can cover as many as possible. And a couple of years back, we did look at medication and how they were controlling the opioids and other controlled substances. We are now going to likely be putting that back into the upcoming inspection program that we have. We have had recent discussions on that. Secondly, we are working on a pain management report, covering how does VA deal with pain management issues, which would be opioids and other medication. That will hopefully be out relatively shortly. It is a national review of what they are doing. VA has an opioid safety initiative going on in an attempt to bring down the amount of opioid use, so we are looking at the impact of that as well. In addition, as we both are proactive and get referrals on potential misuse of opioids, we are aggressively looking at that as well. And we have a number of open investigations and have brought some other ones as well, aside from making sure people who have done something wrong are brought to justice as a deterrent effect as well, to make sure people know we are watching this as carefully as possible and will bring action as appropriate. ACTIONS AGAINST PRESCRIPTION DRUG THEFT Mr. Ryan. So how many people up to this point have we brought action against that was selling pills, stealing pills? How prevalent is that up to this point? I mean, do you have any early data on those? Mr. Missal. It is definitely in the hundreds of cases that we have brought or individuals involved over the years. I believe we have something like 90 active cases right now, which could involve more than one person. So it is an issue out there, and we are looking at it very closely. Mr. Ryan. So they are stealing and selling. Mr. Missal. They are stealing and selling, or some of the staff use it in the facilities themselves and then substitute a saline or other substance for the patients. Mr. Ryan. Thank you. I yield back. Mr. Dent. Thank you, Mr. Ryan. At this time, I would like to recognize the gentleman from Virginia, our Navy SEAL, Mr. Taylor, for 5 minutes. Mr. Taylor. Thank you, Mr. Chairman. I have a bunch of questions. Thank you for being here. We really appreciate it. This is certainly a personal issue for me. And our district has many, many veterans, fastest growing population of women veterans and OIF/OEF veterans. So I appreciate your time and your work. RETIRING LEGACY SYSTEMS Let's talk about legacy systems really quickly. Is there a push in the VA currently to get rid of legacy systems? Because some of these systems are from the 1980s, which is incredible. And I understand it is expensive. That being said, is there a push to procure new systems that are relevant to today so you are not looking for parts or hardware and stuff like that that is not even made anymore as opposed to building on legacy systems that are still there? Mr. Missal. Right. Secretary Shulkin has made several recent statements about that, and what he has stated is that he is looking very closely at this issue. He wants to study and analyze whether certain systems should be replaced and how exactly to do it. So, at this point, my understanding is VA has not made any final decisions on what they are going to do with respect to their legacy systems as a whole. Mr. Taylor. Any idea on timing, like, when those decisions will be made? Mr. Missal. I hope it is as quickly as possible, because IT is an issue that we have identified as a problem in a number of our reports. Mr. Taylor. Thank you. UNIFORM TREATMENT PROTOCOLS FOR SUICIDAL VETERANS Shifting gears really quickly, on the suicide--and I understand the hotline and everything like that. But what is the proper procedure--not the procedure, but is there a uniform procedure if a veteran, any veteran, walks into a facility and says that they are, in fact, suicidal or having suicidal thoughts? What happens there? And is that uniform across the board? I know that you mentioned the VA being decentralized, but that seems like it would be something that would have to be uniform policy, you know, if somebody--not the hotline, but they walk in and they are a veteran and they have suicidal thoughts. What happens? Mr. Missal. Right. There are suicide prevention officers at the various facilities, and they are supposed to be notified immediately if a veteran is in danger in any way. And so they should be getting appointments immediately, depending on the urgency of the situation. Mr. Taylor. So if somebody--just a followup. If someone walks in--I walk in and I say I am having suicidal thoughts, what happens? You said, you know, they see about the urgency. They don't take me in? Mr. Missal. They should take you in right away. For something like that, I would expect them to take you in right away and have you see a provider immediately. Mr. Taylor. Just one other followup. I apologize. Is there a uniform policy across the board? Mr. Missal. I believe VA does have policies, but as I said before, they are decentralized. And they do change the application of some of the policies if it makes sense at a particular medical center. Mr. Taylor. I appreciate that. Just because I am dumb, just to clarify, so it is decentralized, but you are not positive that there is a uniform policy, if somebody walks in and they have suicidal thoughts, what happens. You know, I am not being argumentative, but I want to know, because this is an issue that has come up in our own VA, as well, too. Mr. Missal. I don't know of the specific policy, but my understanding is that if you are a veteran in urgent need that you will be seen immediately, or you should be seen immediately. And my understanding is that they would have some policies that cover that. I don't know how specific it is on the suicide perspective. Mr. Taylor. Okay. I will talk to you about that offline, I guess. Mr. Missal. Sure. ELECTRONIC HEALTH RECORDS Mr. Taylor. I wanted to follow up on the interoperability and legacy systems, as well, too. I understand there is more of that. There has, you know, been a big push for electronic health records. Are you able to speak to the DOD, 100 percent--so if I come in and I am applying for VA disability, I get out of the military--obviously, 100 percent from VA are from DOD--are you able to see everything that I was treated for, where I was treated for, all those things, so that in fact you are able to, one, expedite that claim but also, two, reduce fraud? Because, obviously, veterans--and you may not hear this from this side that often, but veterans commit fraud sometimes, as well, too. So are you able to see those things with the current technology that is there? Mr. Missal. They have different systems right now. I know that is another issue under discussion, is should they try to have one system. There are workarounds, so there is information that is being transferred from DOD to VA---- Mr. Taylor. So there is still discussion about whether they should talk or not or what system they should talk--even though 100 percent of people in the VA are from DOD. Mr. Missal. That is correct. Mr. Taylor. Incredible. Thank you. Thank you, Mr. Chairman. Mr. Dent. Thank you, Mr. Taylor. I guess at this time we will move into our second round of questioning. VA/IG STAFF EXPANSION A couple things about your agency's growth, Mr. Missal. As you are aware, Congress provided the IG a generous increase for fiscal year 2017 as part of what your predecessor describes as a multiyear increase to right-size the agency. And I think we took you up to about $160 million in fiscal year 2017, which is about $23 million above what you were in fiscal year 2016, or it is about a 17-percent increase. And I think you have about 790 full-time equivalents, plus--that is about 100 above what you were the year before. Is that correct? Mr. Missal. That is the plan. Correct. Mr. Dent. All right. So what progress have you made in expanding staff and adding new locations, especially out west, where you had not very much of a presence? Mr. Missal. Right. Well, we are in the process of trying to hire as aggressively as we can. We are looking for quality people. We want to make sure the people that we hire are of the very highest quality. Every day it seems we have other announcements going out, as we have exemptions to the hiring freeze that is in place now. And we will continue to do that until we get fully staffed up. With respect to new facilities, we are going to be opening a new office in Salt Lake City. We think that is strategic for our office, and we believe there is plenty of need in that area. And that is one of the offices we are opening; we are considering some other ones as well. Mr. Dent. Why Salt Lake City? You said it is strategic. Mr. Missal. Because of the medical centers in the area and the regional office for benefits. We don't have anything that close to that area. We also think it is a good workforce where we can attract good people. FOR PROFIT SCHOOLS USING THE POST-9/11 GI BILL Mr. Dent. Okay. I want to just talk briefly about for-profit schools using the Post-9/11 GI Bill. There have been questions from Congress about the quality of education some for-profit schools are providing veterans who use the Post-9/11 GI Bill. The stories we hear about flight schools, beauty schools, truck-driving schools, et cetera, that are charging high tuition with almost no class time and no job prospects, all paid for by the Post-9/ 11 GI Bill. The Student Veterans Association of America recently published research saying that public schools received 34 percent of all Post-9/11 GI Bill funding and produced 64 percent of the degrees, but the for-profit schools use 40 percent of the Post-9/11 GI Bill funds and produced only 19 percent of the degrees. So is your office investigating high-cost, low-performing for-profit schools that are profiting from the Post-9/11 GI Bill? Mr. Missal. Yes. We have brought a number of criminal cases involving schools that have not lived up to the commitments that they made. In addition, we have an audit now involving the State- supported agencies that are required to get involved in the authorization for those funds to be used. And we should have that report out in the next few months. Mr. Dent. Okay. I was going to ask you about that. So the audit is coming in the next few months. Mr. Missal. Yes. DISABILITY CLAIMS BACKLOGS Mr. Dent. All right. Very good. On the issue of disability claims backlogs, we understand that there has been a small uptick in the size of the backlog of VA disability claims. Is your agency continuing to review the processing of claims to judge whether VA needs to implement new systems or workforce increases to keep the size of the backlog low? Mr. Missal. Yes. We have a benefits inspection group that goes and inspects the 56 regional offices and puts out reports as they finish their audits and reviews. So, yes, we are actively looking at the benefits. GAO HIGH RISK REPORT Mr. Dent. Thank you. And then, on the GAO high-risk report, I guess the GAO's February report continues to categorize the VA as a high-risk enterprise in five areas--for example, ambiguous policies and inconsistent processes; inadequate oversight and accountability; information technology challenges; inadequate training; and unclear resource needs and allocation priorities--although the GAO report acknowledges the VA has made some improvements, notwithstanding. Do OIG findings lead you to that same conclusion? Mr. Missal. Yes. We recognize the five areas that GAO found, and many of our reports include one or more of those same inadequacies. PROGRESS IN REDUCING TIME BETWEEN REPORTS Mr. Dent. And on transparency and timeliness, you made a commitment to make publicly available all IG reports. Mr. Missal. Correct. Mr. Dent. We truly appreciate your leadership on that score. In last year's hearing, members were very frustrated that the IG was choosing not to release some reports. What progress are you making in reducing the amount of time between an investigation and the publication of the report? Members were also frustrated by that issue in last year's hearing as well. Mr. Missal. Right. I think we are making progress. We still have some work products that were in the works when I started that we are still pushing to get out that may be of an older time period. But I think the VCL is a good example of a model of where we want to go. We started that inspection around the beginning of June, and we now have it out in well less than a year. And we are going to try to do better than that. Mr. Dent. Thank you, Mr. Missal. My time has expired. I now recognize the ranking member for her questions. Ms. Wasserman Schultz. Thank you, Mr. Chairman. Mr. Taylor, when we were at the VA medical center on Monday, the very concern that you raised, about the inconsistency of the training, was evident in their description of how it works between the national crisis hotline and their local hotline. And I would like to talk with you more about the concerns, because I share them. Mr. Taylor. Sure. DISCREPANCIES IN WAIT TIMES DATA Ms. Wasserman Schultz. Mr. Missal, I just want to ask a followup question about the discrepancy in your data on the wait times and what you attribute that to. I mean, can you clarify what you think is driving the discrepancy between the IG's data on wait times and the VA's data? Because you seem to allude to training and a lack of clarity on policies to be the cause. Do you think there is also a possibility that it is still manipulation? Mr. Missal. We don't rule out any possibility. With respect to VISN 6, where we found very different numbers than VA, I will give you a concrete example of the difference. So if a veteran has a preferred time, a veteran comes in and says, ``I want to be seen on June 1st,'' the policies in effect at the time said the scheduler is supposed to put a note there just to, again, make them do an extra step to double-check that that is a real date. And so we found many instances where there was no note. So if there was no note, then it would default to another date. And that is where we used the other date. VA, in calculating their wait times, didn't do that. So we considered it was in violation of the policy, and so---- Ms. Wasserman Schultz. Because they didn't use the veteran's preferred date. Mr. Missal. They shouldn't have used the veteran's preferred date if there was no note there. CHOICE PROGRAM MEETING REQUIRED SPENDING TARGETS Ms. Wasserman Schultz. Okay. I see. Thank you. Another troubling aspect about the IG report noted that the VA was meeting--the Choice Program was meeting its required spending targets. And that is kind of odd, because we gave them $15 billion. And part of it was for infrastructure; the other part was for care. Right now, the Choice Program is on track to hit its expiration date with money left over. So how is it possible that the program didn't have adequate resources? Mr. Missal. I think the issue was with the start-up of it. It started up within 90 days from the legislation. It just took them a while to get the network up where they would be able to be more operational with respect to it. So the first part of it, they just didn't spend the money that was allocated to them. Ms. Wasserman Schultz. So, in the beginning, they seemed to not have adequate resources, or they weren't using the resources that they did have appropriately? Mr. Missal. They weren't using the resources because they hadn't yet built up the network of doctors and providers out there who the money would be going to. Ms. Wasserman Schultz. Okay. VA OIG RESOURCES NEEDS And in the spirit of making sure that you continue to have the resources that you need, do you have the resources that you need at the moment to conduct proper oversight? And, I mean, I know that you mentioned during our meeting you were having a tough time getting reports out. Is the hiring freeze a problem now, and do you anticipate it making the problem worse? Mr. Missal. The hiring freeze clearly impacts us. It is hard to give you a precise estimate of the impact, but we are not able to hire the people that we would like to hire so that we can continue to do our effective oversight. And we are hoping, going forward, with additional funds, that we can put to good use every additional person that we are hiring. Ms. Wasserman Schultz. And you don't qualify for an exemption in the hiring freeze policy? Mr. Missal. Some of our positions do. According to OPM and OMB guidance, I am the head of the agency and allowed to grant the exemption. And under the memorandum, you can do it for national security or public safety. Much of what we do is in the public safety realm. We have given our plan for the exemptions to OMB and OPM, and they said to go ahead and follow that plan that we had, and we have been doing that. Ms. Wasserman Schultz. So are you concerned that you will be unable to hire the necessary additional auditors and employees that you need to be able to do the appropriate amount of oversight that is necessary here? Mr. Missal. I am concerned we are not going to have enough of them to do the oversight that we see we should be doing, yes. Ms. Wasserman Schultz. Because of the hiring freeze or not enough resources or both? Mr. Missal. A little bit of both, but the hiring freeze definitely is impacting the number of people we are going to be able to hire. Ms. Wasserman Schultz. In spite of the fact that you have the flexibility in those two areas. Mr. Missal. We can grant exemptions but only in certain situations. So, for our open positions, we estimate it is 50 percent or so of the people in the open positions we are going to be able to hire pursuant to exemptions. Ms. Wasserman Schultz. I would suggest to all my colleagues on the committee that if there is a place that cries out for an exemption if this hiring freeze is going to continue, it would be the OIG at the VA. Thanks, Mr. Chairman. I yield back. Mr. Dent. Thank you, Ms. Wasserman Schultz. At this time, I recognize the gentleman from Arkansas, Mr. Womack. Mr. Womack. Thank you. I appreciate your testimony, sir. Thank you for your service. PROACTIVE OIG AUDITING As you know, one of the things that we are able to do from time to time at this level is take care of our veterans by putting them on some solid ground from a small-business perspective, both from a service-disabled small business or just a veteran-owned small business. I have read and I have seen some data that shows that there is good oversight, or at least oversight, on the programs, but I don't think it has been audited since 2011. So my question would be specifically, other than just prosecuting people for fraudulent-type activity in these programs, which, as I said, we have read and heard about, is there something, in your experience, that we could be doing that would be more proactive in nature? Instead of us always reacting to a fraudulent activity, what can we do proactively that can give us the proper filters to ensure that we are not having to be reactive on some of these issues? I hope I am clear in my question. Mr. Missal. Sure. Mr. Womack. What would you recommend, if anything, that we can do that we are not presently doing? Mr. Missal. Well, a few things. One is the oversight, what kind of information you ask for about the program to see if it is fulfilling the goals that you have. Secondly is accountability, when you see that the programs aren't operating as they should be or there are issues, is to take action as quickly as possible. When we do an audit of a program, we are looking at a lot of different things. And we want our work--to answer four questions: First, why is it important to do? So, as you point out, those programs are very important. Second, what happened here? And third, why did something happen? Again, that gets to the root cause. If there are issues and for the sake of being able to anticipate, you want to get to the root cause. And finally, who is responsible for accountability? And so that is what we try to do, and, in your oversight role, I know that you try to accomplish the same objectives as well. Mr. Womack. Yeah, we can't see it all and uncover it all, but my concern is that there are likely some things we can do. Specifically, are we hampered, are we handcuffed at all by privacy information, by doctor-patient relationships, HIPAA- like restrictions? Is there anything that we could be doing proactively from a legislative point of view that would kind of free up the organization to better understand or control these programs? Mr. Missal. Right. It depends. Obviously, VA, with their healthcare system, has certain privacy issues that are going to impact your oversight role. I think it really depends on the various programs that you have. But there are lots of opportunities to look at oversight. We try to be as broad as possible in what we look at, and that is why we use inspections, audits, reviews, and investigations, so that we can cover as broad an area as possible. Mr. Womack. Of the known and prosecuted cases, has there been established any kind of a pattern of conduct? Or are they just random? Do they cover the waterfront in terms of fraudulent activity? Mr. Missal. They really cover the waterfront. Obviously, the colloquialism ``rent a vet'' is very prevalent out there, so we look very carefully at those matters to make sure that the contracts are going to the veterans who qualify for it. Mr. Womack. Is there a geographic area more susceptible to this kind of behavior? I know, for example, in some of the Medicare issues that we see surfacing, there are pockets of places where this seems to be more prevalent than other places. Mr. Missal. Nothing has come to my attention that it is focused on particular geographic areas. HIRING FREEZE IMPACT Mr. Womack. And then, finally, as it pertains to the hiring freeze, I have a whole other set of questions on that. In your opinion, just in a few words, what limitations does the hiring freeze or any other personnel actions have on the ability to deal with the veteran-owned small-business or disabled-veteran business opportunities? Mr. Missal. We have to pick and choose among the matters that we---- Mr. Womack. But is it a priority? Mr. Missal. It is a question of priorities, exactly. And the fewer people we have, the tougher it is going to be to hit our priorities. Mr. Womack. Okay. I know I am out of time. Thank you very much for your testimony. Mr. Dent. Thank you, Mr. Womack. At this time, I would like to recognize the gentlelady from California, Ms. Lee, for 5 minutes. Ms. Lee. Thank you very much. COLLECTING DATA BASED ON RACE AND ETHNICITY Good morning, I apologize for being late. I would like to follow up on one of the questions that Mr. Bishop asked with regard to data collection, in terms of disaggregating data based on race and ethnicity. Earlier this year, we had the chance to visit the VA medical center here in Washington, DC. One of the questions I wanted to get answered but couldn't quite get answered was the utilization of data to track minority-, women-owned businesses, and disabled-veteran-owned businesses. They were able to break down, for example, the percentage of women-owned businesses and other categories, but they did not break it down by race. So I want to find out--are you capable of doing that? Because it is extremely important to make sure that all companies are given equal opportunities. And when you don't have the data, we don't know if African-American businesses, if Latino businesses, or Asian-Pacific American businesses are participating in the contracting opportunities. Mr. Missal. Right. Well, I know that VA keeps data in a lot of different ways. We have access to VA's databases, but it is really up to them to decide how they want to categorize things. Obviously, if we see something that we think should be covered, we could make a suggestion, but it is really their responsibility to keep their data. Ms. Lee. But we do have some Federal Government requirements to be sure there is nondiscrimination and equal opportunity for all people in all companies. Mr. Missal. Sure. Ms. Lee. So I would think, in your position, in terms of investigating and making sure they are compliant, that is not their decision. I mean, we have laws that they should comply with to ensure that African-American, Latino, and Asian-Pacific American businesses are being treated fairly and equally. Mr. Missal. Absolutely. And that is something we could certainly look at, and then we would have to work with them to see how they can get the data. Ms. Lee. Okay. Could you do that, please? Mr. Missal. We can look into that, absolutely. Ms. Lee. Okay. Thank you very much. EFFICIENCY IN PROCESSING CLAIMS Now let me ask about the Oakland office. First, I thank you very much for following up with some of the requests we have made. Last year, I am told that 53 percent of claims were processed, but we still have about 54 percent in terms of backlog. What needs to happen to become more efficient in processing these claims? We have had terrible problems at Oakland, and we are trying to get our hands around it. We have made some progress, but 54 percent of claims unprocessed, is not good. Mr. Missal. I think you see great discrepancies among the regional offices in terms of the backlogs they may have, how quickly they can get through the processes. And, again, I think one of the major issues is leadership and oversight of particular offices there. And so that is something VA should look at, to make sure that they have the proper people doing it, that they are following the policies, and they are moving the claims through as quickly as possible. Ms. Lee. What would be your oversight role in that, if any, to determine whether or not they are compliant with what we have requested? Do you audit them? Or review? Mr. Missal. We could audit. We could do a less formal process, which would be a review of some kind. Obviously, when we look at something, we generally make recommendations. We keep a report open until they complete the commitments they made in the recommendation. If we think later on that they have fallen back or they haven't fulfilled what they had said they would and they look like they had at one time, we will definitely go back in and look again. Ms. Lee. So I would have to make that request of you. Mr. Missal. You have just made it. Ms. Lee. Thank you very much. Mr. Dent. Thank you, Ms. Lee. At this time, I would like to recognize the gentleman from West Virginia for 5 minutes, Mr. Jenkins. ALLOCATION OF FUNDING INCREASE Mr. Jenkins. Thank you, Mr. Chairman. There were discussions relating to your budget, and from the appropriations standpoint, a $159 million annual budget. You had this bump up. You identified 725 FTE equivalents, and you identified 5 areas. I want to talk about where you are putting the increased funding this last year and into which of these categories from an FTE--you mentioned you do investigations, you do audits, you do contract reviews. I am curious about what staff increases in the subcategory of investigations. And a followup on that topic. Mr. Missal. Sure. We have a number of offices which include investigators, and so we probably have more offices with investigators than any of the other directorates, just because we want to cover as broad an area as possible across the country. So what we have done is we have taken a look at all of the offices, the current staffing, and whether or not it makes sense to add staffing to that. My personal view is we have a number of smaller offices of investigators. We might have two or three. And, to me, it is just harder to be as productive as you can be. If you are going to work in teams and you have people going off doing different things, it is just harder to do that. So one of the things we are looking at is building up our smaller offices, because we think that will actually increase the productivity. It is almost as if one plus one equals three, as opposed to two. Mr. Jenkins. Can you share a breakdown of this, under the fiscal year 2017 budget increase that you got and the ability to hire new people, where in these five subcategories you are actually putting these FTEs? I hear you about the office size and the number of offices. What I am interested in is what your priorities are. You are putting more staff into contract review? More staff into audits? More staff into investigations? I would like to see where this staff is going and also, moving forward, where you think they need to go. You know, a little bit of this is audit the auditor. And my curiosity, while we appropriately have asked lots of questions about you holding the VA accountable to what we expect from the VA--I have two VA hospitals in my district. I hear oftentimes from employees, whistleblowers, about their concerns, what they are seeing. And we, of course, turn these folks, appropriately, over to your office. Mr. Missal. Right. TIMELINE IN RESPONDING TO COMPLAINTS Mr. Jenkins. Tell me about your timeliness in terms of responding to complaints, the followup with that whistleblower. Because we often hear concerns that we have made the call, we don't get the time and attention, we don't get substantive followup. How do you evaluate your performance in responding to whistleblower concerns, the employees of these VA hospitals? Mr. Missal. With respect to responding to whistleblowers, we definitely can improve our performance there. We have a hotline group. The hotline group is in our management and administration group. And they are the ones who take the first look at the approximately 39,000 contacts we get to our hotline. Every one of those is triaged. So we triage each one of those 39,000. Some we can immediately deal with; others require additional review. Others we will share with some of the other directorates. If somebody says, one of your medical centers in West Virginia, they say there is a problem with a doctor, that will immediately go to our healthcare group. They will look at it to see what should be done. So, if it is an urgent situation, we look at it very, very quickly. But to your question about where am I looking to increase staff, hotline is one of them. I think we can do more. We can personalize more of the responses that we give to individuals. And the other area is in our healthcare inspection group. Right now, we have over 200 staff in investigations, over 200 staff in audit. We have about 125 in health care. And given the focus of VA on health care, we need to increase that pretty dramatically. Mr. Jenkins. Well, I am very interested in serving our veterans and the employees who are taking care of the veterans. I appreciate the interest in the hotline needing to staff up, but I appreciate your sensitivity of the statement, quote, ``We can improve.'' I will be looking for that improvement so that those who are contacting the Inspector General Office with a concern, that they don't feel like that is going on deaf ears. They don't hear back at times, and they think nobody is listening. I want to make sure you are listening. And from a staffing standpoint, that is why I want to see, are you investing in the area for the personnel to make sure we are responding to those concerns. Mr. Missal. I agree. Responsiveness and prompt responsiveness is very important to me, because if we don't have it, we are not going to have the confidence that we need to have for veterans and others to think we are doing our oversight work properly. Mr. Jenkins. Thank you. I yield back. Mr. Dent. Thank you, Mr. Jenkins. At this time, I recognize the gentleman from Georgia, Mr. Bishop, for 5 minutes. Mr. Bishop. Thank you very much. Your audit report found that the VA made about $247 million in improper GI Bill payments and $205 million in missed recoupments annually. GI BILL BACKLOG AND PROCESSING DELAYS On 17 March, which was last Friday, the VBA website posted a message stating that veterans and servicemembers can expect processing delays due to an internal audit. When do you expect that the audit will be completed? How many current GI Bill claims are currently backlogged? And when will the VBA be able to start working through the growing GI Bill backlog? Mr. Missal. I don't have the specific numbers there. The report that you mentioned identified significant issues with both the payment and the recoupment, and we projected out what the impact could be if they didn't fix it as quickly as possible. So we are following up on that, since they are open recommendations, with respect to that report and that issue to make sure that they fulfill their commitments. Mr. Bishop. Do you expect any criminal investigations to come out of that? Mr. Missal. We do have criminal investigations as it relates to the GI Bill funding. And we have had a number of prosecutions, and we have active cases right now. Mr. Bishop. Okay. No further questions. Thank you. Mr. Dent. Thank you, Mr. Bishop. At this time, I would like to recognize Mr. Taylor. Mr. Taylor. Thank you, Mr. Chairman. TREATMENT OF INELIGIBLE VETERANS I have a question, and this is something that maybe you don't get often from this side, I think. But, you know, I walked through my VA and asked a lot of questions, and it was pretty clear there were some folks there that probably were not eligible for the care that they were receiving. And, again, I mean, from this side, the political pressure, I think, is to treat veterans and be pro-, pro-veterans. But if there are folks that are not supposed to be--you know, they are not rated or they are not supposed to be treated there, then that is, you know, a pretty excessive cost potentially. My question is--and, like I said, I walked through and I saw this and asked a question, and they definitely verified that. Have there been any reports that are out there, or have you guys looked into it, as far as potential veterans that are being treated that aren't necessarily supposed to be being treated at the VA? Mr. Missal. I don't believe there has been any report certainly since I have been there. I don't know how far back to go to know whether or not we have done that. Certainly in recent time I don't believe we have looked at it. We do look at the Health Eligibility Center, which determines eligibility for care. We have done a lot of work in that area, but not to see whether people are getting services who should not be. Mr. Taylor. Obviously, we want everybody to be treated, of course. That is not the point. But, as you can imagine, if there are folks who are not rated to be treated but being treated at a VA, that could be tremendous costs across the whole system. So is that something that you would be interested in taking up or doing a report on to figure out? You know, ``I have the eligibility right here,'' and veterans know if they are eligible or not, based upon, you know, what is there, of course. So is that something that your office would be willing to do and a report on to figure out, okay, are there, across the board, in different--whatever the treatment might be, but folks that are--not necessarily that they are abusing it, but if they are not supposed to be treated, then they are not there. And then what is that cost to the VA? Is that something that you would be willing to do a report on? Mr. Missal. We would certainly look at it to see if it is a systemic or other large problem. Any information that you have that would be helpful to us, we would really value getting it from you. Mr. Taylor. All right. I appreciate that. I would love to follow up with you on that to get that report done. Thank you. Thank you, Mr. Chairman. Mr. Dent. The gentleman yields back. At this time, I recognize the gentleman from Ohio for 5 minutes. Mr. Ryan. Thank you, Mr. Chairman. I want to review the numbers from your testimony for a minute here. As I understand it, your organization has a return of investment of $30 for every dollar of Federal funding, which is pretty impressive. Despite that, the skinny budget from the President is proposing to flat-line the VA discretionary programs, which you are included in. And so my concern is that this one-size-fits-all plan ignores your planned staffing increases designed to champion and protect our veterans health care and benefits, as you already do, by reducing costs. In addition to failing to meet this promise, if I continue to follow the math correctly, we talk about a potential repeal of the healthcare bill would cause 24 million Americans to lose their health care, which would increase veterans' participation into the VA program and generate an even larger need for you and your oversight and the precious funds that you have. UNMET FUNDING NEEDS So the question is, is that a reasonable estimation to say that $30 million would be the number if we follow the President's intended funding? And if the VA sees an increase from the repeal of the current healthcare system options that many veterans take advantage of, would your staffing and budget needs also increase? Mr. Missal. It likely would. I don't know and I haven't seen the numbers of what the impact would be if there is a repeal, but any type of increase in the use of VA, whether it is the healthcare system, whether it is benefits, would then cause us to have additional responsibility. So there are other variables that could come into play that could impact the funding that we have and our ability to do effective oversight. Mr. Ryan. So you are flat-lined. And for every dollar, you save 30. Mr. Missal. Correct. Mr. Ryan. And if 24 million people lose their health care, I don't know what the exact number would be, but we would assume that hundreds of thousands, at least, would be veterans---- Mr. Missal. Right. Mr. Ryan [continuing]. Who would then go into the VA system because they wouldn't have anywhere else to go. So that, to me, seems like it would have a huge impact on the VA and your ability to try to continue to save us money. Mr. Missal. Right. And if I could just add one thing, on the 30 to 1, that is the amount of dollars that we save or the impact that we have. We are one of the few IGs that also has healthcare responsibilities. And so on those, it is not a dollar return. What you are talking about is helping to save lives, helping to have better medical care. And so that should be on top of the 30 to 1. And to use a commercial, we consider that priceless and very important to what we do. Mr. Ryan. Excellent. Thank you. Mr. Dent. At this time, I would like to recognize the gentleman from Arkansas, Mr. Womack, for 5 minutes if he has questions. HIRING FREEZE EXEMPTIONS Mr. Womack. I won't need all that time. I just want to go back to hiring freezes for just a minute. You detailed in your written statement that, based on guidance from OMB and OPM, you have the authority to determine what positions in the OIG are subject to the Presidential memorandum on the freeze of hiring. You also stated you exempted some on the basis they were involved in national security or public safety responsibilities. And I apologize if this has already been covered. I got here late today. With that in mind, can you give us an example of a position within the OIG that involves national security or public safety responsibilities that would be exempted? Mr. Missal. Sure. On public safety, we have a number of positions that we feel should be exempted under public safety and we have exempted under public safety, such as criminal investigators, such as auditors looking at significant programs which could have a significant impact on taxpayer dollars, and our healthcare inspectors and providers who are looking at the medical centers, medical facilities to help make the healthcare providers at VA work more effectively. Mr. Womack. How tight are those conditions? In other words, you could probably make an argument from agency to agency that a lot of these types of positions are geared to do exactly what you just said. So is it as simple as giving it a general umbrella that because they work in this particular area that we can automatically exempt, or are they pretty tightly reserved there? Mr. Missal. We are looking at every position on a case-by- case basis. We are taking the memorandum very seriously. We were asked to consult with OMB and OPM, and we did so. And they agreed with our plan in terms of the types of positions we were going to grant exemptions to. Mr. Womack. In those positions, what would be the churn rate, typical churn rate of in and out? Are these revolving- door positions, or are these people who have been there a long time? How would you characterize the general character of this particular lot of employees? Mr. Missal. Our turnover rate is relatively low. We have a very dedicated and committed staff that is really focused on our important mission. And so when people come to us, they stay for quite a few years. Our hope is that when they come to us, that they are going to be there for a long time. Mr. Womack. And then, finally, for those that would not fit under that category that you discussed a moment ago, what would be an example of those kinds of positions? And then, if you can, is there a general breakdown as to X percent of my team should be exempted and X percent could be not considered for an exemption status? Mr. Missal. Right. A lot of the administrative positions that we have, I think, are harder to make the public safety or national security argument for. You are right; I mean, you can make arguments for virtually everything, because what we do is help improve the VA's programs and operations, help make them as effective as possible, and to ensure taxpayer money is spent properly. Everybody in our office, to some degree, is focused in on those two missions. But it is hard to say at this time exactly how many we will have. We estimate it is around 50 percent of the open positions. But we are looking at them position by position. Mr. Womack. That is all I have, Mr. Chairman. Thank you. Thank you again for your testimony. Mr. Missal. Thank you. Mr. Dent. Thank you, Mr. Womack. At this time, I recognize the gentlelady from California, Ms. Lee, for 5 minutes. DATA REPORTING BY RACE AND ETHNICITY Ms. Lee. Great. Thank you again, Mr. Chairman, for giving me a chance to ask my second round of questions. I want to go back to the questions I asked you earlier with regard to the disaggregation of data as it relates to ethnic and racial inclusion in the business aspects and contracting opportunities. The ``National Veteran Health Equity Report'' ``released in 2016'' suggested that ``tools for measuring parameters of interest by race/ethnicity should be incorporated into the next generation of the VA electronic health record user interface.'' As this data base develops, interventions to reduce health and healthcare disparities should be implemented and evaluated,'' especially identifying the causes of racial and ethnic disparities in the VA. Now, in this report, I didn't find the answer to some of the questions I had--specifically relating to emergency rooms, and wait times to see a doctor. I wanted to see, as it relates to the average wait time in an ER, this data disaggregated by race and ethnicity overall. Are all things equal? Are all wait times not very good, or are all of them are great? Or for veterans of color, is there a lower wait time? A higher wait time? I would like to get that information clarified, because I have had personal experience with this. I have visited in several emergency rooms in different parts of the country, and looking at the population of veterans, there seems to be some disparities there. I would like clarity on that. Mr. Missal. Okay. That is something that we can look at and we can see what data the VA has and what they should have as well. At this point, we have not looked at those particular questions. Ms. Lee. Okay. Well I would appreciate you looking into this. Because this is very serious, and I have seen many cases in California that give me some concern. We need to address it. NURSING PAY SCALES Secondly, in a September 2016 report, you found that nursing care was the top critical need occupation for fiscal year 2016. To ensure adequate levels of staff to provide timely access to care, of course, continuity of care is extremely important. Going back to the Oakland regional office--there is a real discrepancy in the pay scale for registered nurses in the Oakland-Fremont area. There are regional pay disparities, which is causing a huge problem in retention at the VA outpatient clinic. I think Fremont is 30 minutes away from Oakland--and we can't figure out how to address these pay discrepancies, which cause retention problems in the medical facilities. I wanted to see if you found any recommendation on how to address that. Secondly, there is not a nursing shortage--but there are nurses, qualified nurses, who are unemployed and can't seem to find a job. So I am wondering, if there are licensing issues with the VA? Why is it that this gap still exists? Mr. Missal. Right. So we were asked legislatively to look at the largest number of open positions. You have identified nursing as one; there were five others that we looked at. And I think this was our third year that we did it. We are going to be doing it over 5 years. One of our recommendations was that VA needs to have a staffing plan to do precisely the issues that you raise--to make sure that they have proper staffing, it is allocated the proper way, et cetera. And so we are still following up with them to ensure that they do have that proper staffing plan, and we will continue to do so. Ms. Lee. I know they don't have a plan. I don't know about other regions, but I know they just don't have it in my district. And I know that pay disparities and discrepancies are a problem in California. I also know that they are not hiring nurses who are looking for jobs. So that is another layer of trying to figure out what is going on. Also how are they following up or are they just not following up? Mr. Missal. I believe there was legislation introduced in the last Congress about increasing pay for certain positions at VA. And, you know, that could be one way to address the situation. Ms. Lee. Thank you very much. I appreciate your being very candid with us in your answers. Mr. Missal. Thank you. Mr. Dent. Before we conclude, I would like to recognize Mr. Bishop. VA ANIMAL RESEARCH Mr. Bishop. Thank you. Just one matter. You recently received a letter, which was copied to members of our subcommittee, from the White Coat Waste Project requesting that you conduct an investigation regarding animal experimentation at the McGuire VA Medical Center. Do you intend to undertake that investigation? And do you have any idea how long that will take and whether or not--well, could you just furnish us with whatever your findings are? Mr. Missal. Sure. I got the letter about 5 o'clock last night. Mr. Bishop. Right. Mr. Missal. I read the letter. I responded to the gentleman who sent it, saying we will review it. And we are in the process of reviewing it and will determine whether or not it is something that makes sense for us to do. Mr. Bishop. Thank you. Mr. Dent. Thank you. I have no further questions, although I will submit--I do have questions, actually, but I am going to submit them for the record for you to respond to, Mr. Missal. And, again, I want to thank you and thank the ranking member and all the members who attended today's hearing. So, again, appreciate your testimony and your responsiveness. I should mention one thing before I adjourn. The subcommittee's next hearing is Wednesday, March 29, at 10 a.m. in this room. We are going to hear from outside public witnesses. So, having said that, this meeting is now adjourned. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Wednesday, March 29, 2017. PUBLIC WITNESSES HEARING Chairman Dent Opening Statement Mr. Dent [presiding]. Good morning. I would like to bring to order this hearing of the House Subcommittee on Military Construction and Veterans Affairs. Today we are going to take testimony from public witnesses to hear the views of their organizations on matters related to this subcommittee's jurisdiction. We welcome you all here this morning. And I am happy to say that we were able to accommodate all the witnesses who wished to testify regarding the fiscal year 2018 appropriations and oversight matters for MILCON-VA. As it turns out, all the witnesses are commenting on VA issues. I wanted to note that there are multiple appropriations hearings today at 10 o'clock, so several subcommittee members have conflicts and may not be able to join us or will be here intermittently. We will also be sure to share your views with them and with the committee as a whole. So again, thank you for being here. For public witnesses hearings we move quickly to accommodate everyone. Each witness will have 5 minutes to testify. I would not expect many questions, but if there are any from members please try to answer them as briefly as you can. The full written testimony that each of you submitted will be entered into the official record. With that said, we appreciate that you have taken time to share your expertise and viewpoints on current and future veterans affairs issues with the committee and look forward to a valuable meaningful discussion this morning. Let me turn to the ranking member of our subcommittee, Ms. Wasserman Schultz, for any remarks that she may have. I recognize the gentlelady from Florida. Ranking Member Wasserman Schultz Opening Statement Ms. Wasserman Schultz. Thank you so much, Mr. Chairman, for yielding, and I appreciate you agreeing to hold this important public witness hearing. Today's witnesses work tirelessly to assist our veterans daily as they navigate the--as I have been increasingly discovering--too often cumbersome VA system; the transition to civilian life; and the physical, emotional, psychological, and financial challenges that our veterans face upon returning home. To best identify the needs of our veterans it is important that we hear from them and partner with those who know them best, our VSOs. While the VA has made great strides in recent years, we know our work is far from done. This type of hearing is vital for us as appropriators and provides the opportunity to zero in on the issues the American public and the veterans community rely on this committee to address, particularly as we approach our process of marking up our bill. So thank you all for joining us today, and also thank you for joining us yesterday at Leader Pelosi's VSO roundtable. I look forward to participating in that going forward as well as hearing your testimony this morning. Thank you. Yield back. Mr. Dent. Thank you. Thank the gentlelady from Florida. At this time I would like to ask Mr. Blake to please take the seat. Mr. Blake is the associate executive government relations with the Paralyzed Veterans of America. Thank you for joining us, and you are recognized for 5 minutes. ---------- -- -------- Wednesday, March 29, 2017. PARALYZED VETERANS OF AMERICA WITNESS CARL BLAKE, ASSOCIATE DIRECTOR OF GOVERNMENT RELATIONS Mr. Blake. Thank you, Mr. Chairman, Ranking Member Wasserman Schultz. I appreciate the opportunity to be here today. Let me first say that we are pleased to be able to have this opportunity once again. This used to be a regular occurrence with this subcommittee, having the VSOs come before you as outside witnesses, but that hasn't happened in a number of years and we are pleased to have that opportunity once again. We find this exchange very important. I am here on behalf of Paralyzed Veterans of America, as well as my partners in The Independent Budget, Disabled American Veterans, and Veterans of Foreign Wars, who will also be testifying before you this morning. We will be discussing various aspects of the Department of Veterans Affairs funding for fiscal year 2018, as well as advance appropriations for fiscal year 2019. This is our annual budget report that we have drafted. It outlines our recommendations in detail about all of the funding requirements of VA. With the chairman's indulgence, we would like to submit this into the official hearing record? [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Dent. Without objection, we will receive that. Mr. Blake. Thank you. You can also find this report at www.independentbudget.org, and it can be downloaded there, as well. Let me begin by saying that while we appreciate the administration has stated that it intends to recommend an increase in the Department of Veterans Affairs budget for 2018--less clarity about fiscal year 2019 as it relates to advance appropriations--the fact is that the devil will be in the details. There are still many questions that remain about how the Administration will fund the priorities for the VA when the more detailed budget comes out later this spring. The fiscal year 2018 projections are of particular concern for us with the Independent Budget. The previous secretary of VA, Robert McDonald, actually testified last year that they knew that their fiscal year 2018 advance appropriations recommendations were not going to be sufficient to meet what they projected to be demand; yet, Congress acted upon that recommendation last year in the appropriations bill. It will be critically important for this subcommittee, for the full committee, for the House and the Senate to address what we know is a shortfall that the VA itself identified in continued funding for fiscal year 2018 that will come into play beginning in October of this year. We also believe it is necessary to consider the projected expenditures as it relates to the Choice program. Obviously the Choice program is a hot topic on the Hill, in the VA, and the VSO community. Last year in the VA's budget they projected as much as $5.7 billion in remaining funds for Choice. That was a year ago. That number was revised to about $2.9 billion later through the course of the year. Currently the VA is projected to have as much as $1 billion remaining when the Choice program is set to expire in August. We support the legislation that has been moved by the House that will relieve the VA of its authority based on the date of expiration for the Choice program, but I would say that we don't believe that the Choice program, as currently constructed, is the optimal way forward. I don't think anybody actually disagrees with that notion. I think it obviously needs some changes, some improvements, or maybe something that is just better. But there are still a lot of questions remaining about how the Choice--or how that concept will look going forward and the funding associated with it. The current Choice program is covered under emergency designation as mandatory spending. What will that look like beginning after August or beginning in the next fiscal year? That is a serious question for us, a serious concern. Certainly it is a serious issue that you all will have to grapple with. As outlined in our budget, the I.B. recommends approximately $77 billion in total medical care funding for fiscal year 2018. Congress previously appropriated about $70 billion; that takes into account collections, as well. I think the important thing to understand about how the Independent Budget makes its recommendations is we provide an overall snapshot of exactly what it costs to provide care from the VA, and that is a combination of things, from providing care as an inpatient or in the system of care of the VA, whether it be in the community, whether it be through Choice. Our view is the total view of what it actually requires to provide services to VA--or to veterans secondary to VA. That is outlined in greater detail in our budget report. There are a couple of issues I would like to highlight quickly that are included in our recommendations. One is continued funding and increased funding for women veterans programs. Obviously this has become a growing issue. This is a fast-growing population that VA is serving. We recommend about $110 million additional dollars in 2018, $120 million in fiscal year 2019, and that is explained in detail. Another hot topic is reproductive services, assisted reproductive technology, that was included in the appropriations bill, which we thank you all for, last year. It carries us, as we understand it, through the end of fiscal year 2018. It is critical that that program gets carried forward. And then lastly, the Staab ruling involving emergency care services. Everyone believes that the VA has interpreted the ruling--misinterpreted the legislation that was passed all the way back in 2009 about its obligation for meeting emergency care costs for veterans, and they now are on the hook for what may be as much as $10 billion over the long haul because of their decision to not pay for those services, as they are required by law. Lastly, we include a recommendation for medical and prosthetic research to the tune of about $713 million, along with additional money targeted at the Precision Medicine Initiative that the VA has designated. That would bring the total for research up to about $778 million. It cannot be overstated enough the importance of research as a part of the mission of VA. With that, Mr. Chairman, I thank you for the opportunity to testify. Be happy to answer any questions that you or the members of the subcommittee may have. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Dent. Thank you very much for your testimony, Mr. Blake. We really appreciate it. We haven't seen a detailed budget yet for the VA, obviously, but we know from what the administration has provided in the skinny budget that your fiscal year 2018 Independent Budget comes in at more than $9 billion above the President's request. Since the budget treats VA far better than any other domestic discretionary program or agency, I don't know how our subcommittee would be able to provide that kind of funding increase. PROGRAMS WITH THE MOST URGENT NEED FOR INCREASED FUNDING So I only have really one question: Realizing that we won't be able to handle your total request, which areas can you identify within the VA that have the most urgent need for increased funding? Mr. Blake. Well, I think there is no question but the medical care section, particularly under medical services, is the most critically important. To understand how the I.B. frames its recommendation, our medical services recommendation, if you were to line it up with what the VA recommends for its dollars, the VA's comparable recommendation would look like their medical services, plus their medical and community care account, plus their Choice program funding that they have planned. So that is how you align what we recommend. We don't break those out because truthfully, from our perspective it is a complicated proposition to figure out what community care spending might actually be. So medical care in particular is by and large the most important. I think where you see one of the big deviations in our recommendations from the administration is in the construction area. That has been the case for many, many years now. One of our long-running frustrations is particularly in the area of major construction, to a lesser degree minor construction. The VA has billions of dollars in projects that are setting in the queue, and my colleague from the VFW will talk about that so I won't steal his thunder in that respect. But that is a serious concern that we have because there hasn't been enough commitment. From the I.B.'s perspective we have considered in our policy agenda, you know, innovative ways to address the construction issue, recognizing that that part of VA is under scrutiny in places like Denver, New Orleans, Orlando--places where we are not satisfied with how that was handled; I know you all are not satisfied how--with how those things were handled. So construction remains a serious issue. I think in light of the VA's announcement about its plans for information technology, a star needs to be put next to that because it is going to be hard to rationalize the cost in I.T. with what the new secretary has stated as his desired goal, to move towards a commercial off-the-shelf, and how that might impact the funding. I.T. has increased year over year for a number of years now, but we don't know what impact that this decision might have on that decision by the VA moving forward. So I think I.T. is critical, as well. We try to take a view that a number of the administrative accounts are--we take a conservative approach to a lot of the administrative accounts. You see that in our recommendations for medical support and compliance, general administration, some of the areas where we believe there is probably too much bloat in the VA and that--we don't necessarily ascribe to the belief that those should just increase for the sake of increasing. So I think if you look at our recommendations you will see that we try to treat those fairly without going out of the bounds of what seems reasonable. So short answer to your question, medical services for sure, the construction areas for sure, I.T. for certain. I also will just sort of touch on the issue that my other colleague from the DAV will mention: funding for the Veterans Benefits Administration. The number of claims is not going down. We still also have to grapple with the issue of appeals modernization, the cost associated with that. And I think the subcommittee is going to have to figure out how to rationalize what the authorizers are trying to do, along with the VSO community and the VA, in appeals modernization and how that impacts the larger claims process, as well. Mr. Dent. Ms. Wasserman Schultz. Ms. Wasserman Schultz. Thank you, Mr. Chairman. ASSISTED REPRODUCTIVE TECHNOLOGY First, thank you for your service and your testimony. On the assisted reproductive technology language, I was proud to join my colleague, Congresswoman Brownley, in making sure that that language was there, and we followed up with a letter to the VA to make sure that there was a clear understanding that the idea is that this is not just a 1-year policy and that we expect that they would permanently make sure that we can provide this assistance and coverage. So as someone whose--two of three children were conceived through in vitro fertilization, so I certainly know what it is like to struggle with the challenge of infertility no matter what its cost. PARKING AT VA FACILITIES I do want to ask you on--about the challenges that your members might have with parking at VA facilities, because I, you know, represent the Miami area, and I--when I went to the University of Florida, I have never seen a parking problem like they have at the Miami VA--and that is saying something. So come to find out that it is actually against the law to shuttle employees of the VA, as opposed to shuttling veterans. So when a medical center comes up with a solution to park employees in an offsite lot and shuttle them, versus parking veterans at an offsite lot and shuttle them, or have veterans park at the further part of the--end of the parking lot and shuttle them versus employees, that seems to me to be somewhat backwards. So I am going to be filing legislation--likely along with Chairman Roe and hopefully Chairman Dent--and we are working with the secretary--to correct that. But I wanted to see--I would imagine that it is a unique and particular problem for the paralyzed veterans, so---- Mr. Blake. Well, ma'am, I would say, being a regular user of the VA--and I go to the Richmond VA. I have been using that VA for 17 years now, and all I have seen is the parking lot grow to the point that they have knocked down towns around it to build out more parking lot. If you don't go there--if you have a 9 o'clock appointment and you are not there at 6:30 or 7 o'clock you are not parking in the parking lot. I can make the argument that that is a reflection of the demand being placed on the system. Parking is sort of a microcosm of the larger demand for health care services. And that is the demand on a facility like Richmond. Many of the major VA hospitals are like that. I was not aware of the legal challenge you referenced there, but it seems kind of silly. I am sure there are some liability issues that make it more complicated than I would like to believe, but---- Ms. Wasserman Schultz. Well, the secretary---- Mr. Blake [continuing]. But there is no question but that parking is a serious problem. I mean, many of the facilities have brought in valet as an option. All that has done is squeeze, you know, drive-up-and-park parking. I mean, it is certainly a major issue. Ms. Wasserman Schultz. It is hard to imagine what member of Congress thought it would be a good idea to prohibit employees from being shuttled, but hopefully we are going to be able to correct that. PARALYZED VETERANS HAVING ACCESS TO CHOICE PROGRAM And then the other question I had was how are paralyzed veterans experiencing access inside and outside the VA to the Choice program? Mr. Blake. I would say that primarily our members don't use Choice because there is not a whole lot of comparable systems to the VA's SCI system of care outside of VA. You do have 14 model systems of care around the country. The majority of those don't even meet CARF certification, which is one of the--sort of the overarching rehab certifications used for many of the VA SCI systems of care. We encourage our members to use VA's spinal cord injury system, particularly for annual physicals and preventive care. There are barriers and challenges to that. But by and large our members have not taken advantage of the Choice option. I do know that, much like many of the other veterans that have taken advantage, they have struggled when they have taken advantage of the opportunity. I think one of the common problems our members have seen is when taking advantage of the opportunity to use Choice, they find that waits are just as long in the community to receive care or that the service that they are trying to avail themselves of is not necessarily available in the community in which they live. So I think that in the event of our members using Choice, their experiences are not uniquely different necessarily than what the larger population that is taking advantage of it have experienced. Ms. Wasserman Schultz. Thank you. Yield back. Mr. Dent. Mr. Taylor. Mr. Taylor. Thank you, Mr. Chairman. Thank you for--appreciate your service, appreciate that you are in Virginia, and---- EMERGENCY CARE COURT DECISION Mr. Blake. Yes, sir. Thank you. Mr. Taylor [continuing]. And certainly appreciate your advocacy. So thank you very much. Just really quick, emergency care in the VA paying by law: Can you just expound upon that for people like me who are new here and haven't seen that? Mr. Blake. So in 2009 legislation was enacted--and I am not the subject matter expert, so I will freely admit that-- legislation was enacted that basically obligated VA to provide--to pay for your care when you have to get emergency care in the community. The VA, as I understand it, has interpreted that legislation so that they don't--they have not. This gentleman, Staab, sued the VA because he had an experience where he had had to take advantage of emergency care in the community and his bills were not paid. And the court at the federal level ruled in his favor. The VA is currently appealing a ruling that everyone knows they are going to lose. At every level that has already been determined. I think the secretary maybe understands this, but they continue to resist what is the inevitable. And because of their resistance, the bill is just continuing to build. And so the $10 billion cost is over I think a 10-year period, but the current-year cost for the reimbursement is like $1 billion. And it is sort of a trickle-up effect, but it stays in that realm. Bottom line is the VA is on the hook to pay for these emergency bills for well over $1 billion each fiscal year now, and they are not paying any of that. Mr. Taylor. Thank you. Thank you, Mr. Chair. Mr. Dent. Thank you, Mr. Taylor. At this time I recognize Mr. Bishop. Mr. Bishop. Thank you very much. And welcome, Mr. Blake. CONSOLIDATING COMMUNITY CARE PROGRAMS As you are aware, in 2015 the VA delivered a plan to Congress outlining steps to consolidate community care programs. The plan would consolidate and streamline existing community care programs into an integrated care delivery system and enhance the way that VA partners with other federal health care providers, academic affiliates, and community providers. But the Choice and Community Care programs are currently funded from different accounts. There seems to be some problems with their being funded from two accounts--for example, with the Choice being funded from a subsidy-managed account at VA and Community Care being funded at the medical center level. That can present inconsistency of the implementation there, depending on what the local budget is at the community level, at the medical center level. Can you speak to that? Do you think that the provisions of Choice and Community Care programs should be funded from the same account, or you think that that would provide better services to our veterans? Mr. Blake. Well, Mr. Bishop, the I.B. organizations generally supported what the VA had laid out as a plan back in 2015 for its consolidation. We believe that that is a reflection of the right way forward. Continuing to have clearly defined, separate programs, from Community Care over here in VA and Choice, is not the way forward. I think VA recognizes that. When the VA presented its plan in 2015 to the authorizers almost universally the committee supported it. Yet, we seem to have reached a point of collective amnesia that they might have actually supported that. But I think that is the right way forward, and I think the VA has been working towards that end for the last year-and-a-half. There are a number of legislative authorities that are still hanging in the balance that are required to effect those changes. At the end of the day, the I.B. has supported a singular Community Care program. Our policy agenda, which we released back at the end of January and can also be found on our Web site at www.independentbudget.org, explains our view of how that whole integration process should work, our own recommendations to affect the implementation of that, and how it should work. But I think it is not a good idea to continue forward indefinitely with Choice over here and Community Care over here. If nothing else, you run into the problem we had early last year, where the VA took advantage of its Community Care and over-obligated itself, and then they were forced to come to the Hill and say, ``Hey, we need to borrow money from ourselves, which is in the mandatory account of Choice over here, just to be able to pay the bills that we had obligated for care in the community.'' So I think that that creates an obvious problem for the VA in managing its total Community Care---- Mr. Bishop. Thank you very much. Mr. Dent. Thank you, Mr. Bishop. Mr. Blake, thank you so much for your testimony. We sincerely appreciate it, and we are going to take the rest of your remarks under advisement. So thank you, and---- Mr. Blake. Yes, sir. Mr. Dent [continuing]. We appreciate your testimony before us today. Mr. Blake. Thank you very much. Mr. Dent. At this time I would like to recognize Mr. Varela--Paul Varela. Paul is the assistant national legislative director at the DAV, Disabled American Veterans. So, Mr. Varela, we are pleased to have you, and when you are settled and ready we will recognize you for 5 minutes. Again, thank you for joining us. Mr. Varela. Thank you, Mr. Chairman. Mr. Dent. You are recognized for 5 minutes. ---------- -- -------- Wednesday, March 29, 2017. DISABLED AMERICAN VETERANS WITNESS PAUL VARELA, ASSISTANT NATIONAL LEGISLATIVE DIRECTOR Mr. Varela. Chairman Dent, Ranking Member Wasserman Schultz, and members of the subcommittee, good morning. Thank you for providing DAV and our Independent Budget partners with an opportunity to discuss our recommendations for fiscal year 2018 funding requirements essential to the Department of Veterans Affairs' ability to efficiently process and deliver benefits to veterans, their families, and survivors. As one of the co-authors of the Independent Budget, I will focus my comments on resource requirements for programs within the Veterans Benefits Administration--VBA, and the Board of Veterans Appeals. Compensation services is responsible for processing claims related to disabilities and other non-disability-related claims, such as those based on changes in dependency status and award adjustments based on veterans returning to active duty. Additionally, VBA is responsible for processing local-level appeals. For fiscal year 2018 the Independent Budget recommends increasing staff by 750 new FTEE. This staffing increase is needed to address the rising disability rating claims backlog, the appeals backlog, and backlog of non-rating-related claims. Today VBA is responsible for roughly 380,000 appeals at various stages in the appeals process. Of the 750 new FTEE request, we recommend that 1,000 FTEE be dedicated to driving down the appeals inventory. With this infusion of much-need manpower we estimate the appeals inventory could be reduced to a manageable level within the next 3 years. Next, vocational rehabilitation and employment services, VRE, provides critical counseling and other adjunct services necessary to enable service-disabled veterans to overcome barriers as they prepare for, find, and maintain gainful employment. For fiscal year 2018 the Independent Budget recommends increasing staff by 266 new FTEE. Over the past few years VRE program participation has increased steadily without commensurate staffing increases. Furthermore, as VBA continues to expand VRE eligibility to more service-connected veterans due to increased claims processing and changes in law, we project that total program participation for fiscal year 2018 will grow by at least 5 percent, for a total caseload of close to 155,000 participants. Therefore, commensurate staffing levels are critical to ensure VRE services are delivered in a timely and efficient manner to facilitate successful program participation. Finally, the Board of Veterans Appeals must be permitted to on-board the full complement of FTE that was authorized for fiscal year 2017. Congress authorized the Board of Veterans Appeals a total of 922 FTE for fiscal year 2017. To date, they have only been able to increase their FTE by roughly 880. The issue of timely and efficient appeals processing has received considerable attention and been the subject of much debate--rightfully so. On average, it can take close to 5 years to get a resolution on an appeal that is being considered by the Board of Veterans Appeals. As I am sure we can all agree, subjecting veterans to a 5- year wait period in any capacity is simply unacceptable, and they are counting on us to correct this inequity. However, there is some good news. Congress, VA, the Independent Budget partners, and other stakeholders have been working diligently to reform the appeals process to make it less complicated and more efficient overall. This reform has often been referred to as ``the new framework.'' Legislation has been introduced in both the House and Senate, and we are hopeful it will be enacted into law this year. We believe this will provide veterans with more timely and accurate decisions while protecting their rights. However, regardless if appeals reform legislation becomes law, an essential component going forward will be adequate resources for the Board of Veterans Appeals to process not just appeals within the new framework, but processing equitability for appeals within the current inventory in a timely and efficient manner. We must ensure that appeals languishing within the current system are not treated as a lesser priority in favor of a more expeditious appeals processing within a new system. Each and every veteran within the appeals process must be treated fairly and equally. Chairman Dent, Ranking Member Wasserman Schultz, and members of the subcommittee, thank you again for this opportunity to present the Independent Budget's resource recommendations for fiscal year 2018, and I look forward to your questions. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Dent. Thank you, Mr. Varela. ADDING MORE VBA STAFF OR THE USE OF TECHNOLOGY And just wanted to ask one question: The Independent Budget includes a large fiscal year 2018 request for more VBA staff. Do you feel that additional staff are the ultimate answer to keeping the disability claims backlog down, rather than the use of technology? Mr. Varela. They are symbiotic. They are both interrelated. You are going to need--as we can see, VBMS has given the VA quite a lift in claims processing. They were able to keep processing record number of claims each year. But in addition to that, while they were making those strides they diverted a lot of their workforce from the appeals workforce to process those claims. So what that tells you is that yes, you have the I.T. component that is helpful, but you still need the manpower as well, and these two things are interrelated. Mr. Dent. Thanks. I would recognize the ranking member, Ms. Wasserman Schultz. HIRING FREEZE AND PROCESSING CLAIMS Ms. Wasserman Schultz. Thank you, Mr. Chairman. Mr. Varela, given the administration's hiring freeze and your organization's position that staffing levels need to be addressed, how does the hiring freeze affect our ability to achieve that goal? Mr. Varela. It is my understanding that recently some positions within the Board of Veterans Appeals have been exempted so they can reach their full complement of 922 FTE. They probably won't get all of that, but they will get most of it. Without the bodies to do the work, every day that is delayed in hiring new personnel to do the work is an extra day of delay in the claims and appeals process. Ms. Wasserman Schultz. So is it your impression that the claims process is negatively impacted by the hiring freeze? Mr. Varela. Yes, it is. Ms. Wasserman Schultz. Thank you. Mr. Dent. Mr. Valadao. Mr. Valadao. Thank you very much for your service and for being here today. TRANSITIONING SOLDIERS TO OBTAIN LICENSES AND CREDENTIALS In the Independent Budget's agenda that you released this year you mentioned the need for Congress and the Department of Defense to work together to assist soldiers who are transitioning from civilian life to obtain occupational licenses and credentials. Recently the senior enlisted noncommissioned officers from each service testified before this committee and talked extensively about credentialing being one of their top priorities in helping prepare servicemen and women to transition to civilian careers. Now, I know some progress has been made in the Department of Defense, but to your knowledge, has the VA been working with the services to assist with this issue? And in your opinion, how can the VA work with the services and States to streamline the process for transitioning soldiers to obtain these licenses and credentials? Mr. Varela. I believe the VA has been very supportive of that cross-certification. What it really boils down to is the licensing and certification that you get in the service has to translate to what is acceptable within the States. So it is going to be a matter of not just what we can do here with the VA--which they are very supportive of that; DAV also has a resolution that calls for Congress to enact legislation to make that happen--but we have got to get that to trickle down to the States for them to say, ``Yes, that credentialing is acceptable,'' so that a nurse from the military can simply just come out of the military and be a nurse in any State. Mr. Valadao. And yes, you pointed out the States, but here at the federal level what do you think we can do to be of assistance to streamline that or--there is probably not a whole lot. Mr. Varela. Yes. Mr. Valadao. A lot of it falls on the State. Mr. Varela. Here at the federal level we have to ensure that Congress makes it a requirement for the DOD to say that, ``You will outline your certifications to either match what is acceptable within the State or somehow establish those partnerships,'' you know, force them to say, ``We need you to set up a program that allows those skills and credentials to be translated directly into the community.'' Mr. Valadao. Well, thank you. And I yield back. Mr. Dent. Thank you, Mr. Valadao. Recognize Mr. Bishop. Mr. Bishop. Thank you. Welcome, Mr. Varela. The chairman emphasized--and, of course, I am equally concerned about the overall rise in the disability claims and the growing appeals claims backlog. And, of course, I agree with you that the I.T. investments will supplement and augment addressing that. LIMITATIONS ON APPEALS WHILE THE RECORD IS SUBMITTED But one of the things that the VA has recommended and I think the authorizing committees have been considering, with which I have had some concern, is that they want to limit the appeals and the opportunity for veterans to supplement the record while it is pending, once it has been submitted, which is another opportunity for veterans to provide more current medical information to bolster their claim. And, of course, the department has said that that adds to the backlog and that it makes it more difficult for them to alleviate that backlog. So there is some tension there between making sure the veteran gets full consideration, and also expediting the appeals or the reconsideration. What is your view in terms of how to deal with that situation? I have always, and I think the VA has historically, wanted to resolve that in favor of the veteran by allowing the veteran to submit any information at any time which would allow the more favorable consideration of their claim. How do you feel about that and the legislation now that is moving forward that would limit the veteran's ability to do that? Mr. Varela. Okay. So there are two tracks there. One is the current environment and a veteran's ability to submit evidence. In the current environment that has to be maintained because you are dealing with crucial benefits that can be awarded, effective date issues. And as you mentioned, sometimes it is not easy for veterans to come up with the evidence at a particular juncture, so they need to have an opportunity to submit that. And we understand it is additional work for the VA, but it is work on behalf of disabled veterans. So that is where the efforts should be. In the new environment, in this proposed new framework, there are still opportunities to submit evidence, particularly if a veteran wanted to go to the Board of Veterans Appeals. It is limited. We are working out the finer details and what happens if you submit evidence after that, but we are very comfortable that we will still be able to preserve that effective date to that filing and allow that evidence to be considered either at the board or at the VBA level. Mr. Bishop. Yes. That is what the rub is, and I don't quite know how to resolve that because my caseworkers have been able to supplement the records many times with medical evidence that the veteran didn't initially have or didn't submit and end up with a positive outcome. But if they are cut off and shut out from being able to do that until after a decision is made then they have got to start all over again, which, again, is a protracted work for the VA as well as anxiety for the veteran. Mr. Varela. Yes. Mr. Dent. Thank you, Mr. Bishop. And, Mr. Varela, we appreciate your testimony and appearing before this subcommittee today. Thank you very much. Mr. Varela. Thank you, Mr. Chairman. Mr. Dent. At this time I would like to invite Carlos Fuentes, director, National Legislative Service for the Veterans of Foreign Wars, VFW. So we welcome Mr. Fuentes, Carlos Fuentes, before us today. And with that, you are recognized for 5 minutes. ---------- -- -------- Wednesday, March 29, 2017. VETERANS OF FOREIGN WARS WITNESS CARLOS FUENTES, DIRECTOR NATIONAL LEGISLATIVE SERVICE Mr. Fuentes. Chairman Dent, Ranking Member Wasserman Schultz, and members of the subcommittee, on behalf of the men and women of the VFW and our auxiliary, I do thank you for the opportunity to present our views on VA's budget. I would like to first start by thanking you for your hard work last year on fiscal year 2017 appropriations. And because of your hard work, the MILCON-VA appropriations bill was the only one to have completed regular order and, as a result, VA is the only department with full fiscal year 2017 appropriations. Mr. Dent. Could you say that again? [Laughter.] Mr. Fuentes. And we have seen the impact on the number of departments who are operating on the continuing resolution, and no other sticks out more than DOD. And I am sure you are also tracking that part of the military construction aspect of the jurisdiction. Yet, those appropriations levels that were included in the conference report were more than $600 million short of the administration's request and significantly less than the Independent Budget recommendations. We know, however, that your ability to properly fund VA appropriations accounts are severely limited by outdated budget caps established by the Budget Control Act of 2011 and subsequent budget agreements. The threat of sequestration and draconian spending cap limits our Nation's ability to provide servicemembers, veterans, and their families the care benefits they have earned. The VFW calls on this subcommittee to join our campaign to finally end sequestration and do away with federal budget processes based on arbitrary spending caps. The VFW is glad to see President Trump has proposed a 6 percent increase in VA's fiscal year 2018 budget. However, we feel that the proposal falls a bit short. And my colleague from PVA has described our recommendations for VA health care, and I would like to associate the VFW with those remarks. I would like to focus my testimony on VA's need for capital infrastructure. For more than a decade the I.B. VSOs have warned Congress and VA that perpetual underfunding will allow-- would allow VA infrastructure to erode while its capacity to meet demand has swelled from 81 percent in 2004 to as high as 120 percent in 2010. The events of 2014 and subsequent access issues at VA health care facilities have illustrated how chronic underfunding of VA capital infrastructure and the lack of capacity to keep pace with demand has resulted in VA rationing care and veterans waiting too long for the care that they have earned. The I.B. VSOs are working with VA to reform its construction process so facilities can be delivered on time and on budget. Previous errors must be corrected to ensure the issues that occurred in Aurora, Colorado never occur again. However, this subcommittee must not punish veterans who are awaiting desperately needed health care facilities because of the incompetence of bureaucrats who no longer work at VA Currently, VA has 24 partially underfunded construction-- major construction projects, which need a clear path to completion, some of which have been in the works for more than 12 years. VA's fiscal year 2017 priority list, which includes seismic corrections, cannot take a systemic pause while Congress and VA decides how to manage capital infrastructure long term. VA will need to invest more than $3.5 billion to complete all 24 partially funded projects. Of the top five projects, many of them are seismic deficiencies and part of VA's core missions, such as mental health and spinal cord injury centers. The I.B. VSOs recommend that Congress appropriate at least $1.5 billion for major construction in fiscal year 2018. This amount would ensure--will fund the next phase or fund through completion of the existing projects and begin advance planning and design development for VA's major construction projects. I would also like to quickly mention and thank the subcommittee, and especially Chairman Dent, for your leadership on expanding VA's fertility treatment options. VA, as we know, has announced that they will begin providing these treatments soon. However, the authority is limited and folks who--or veterans who aren't able to use assisted reproductive technology or adopt a child before the end of fiscal year 2018 will be left to bear the full cost of starting a family. And these are severely disabled servicemembers who have lost their ability to reproduce due to their service, and we feel that that is unacceptable. We are working with the authorizing committees to make this authority permanent, but we ask that you continue to carry that authority into fiscal year 2019 and 2018 so that these veterans aren't left behind and that they continue to have that opportunity. Mr. Chairman, thank you for the opportunity to testify. This concludes my remarks, and I am happy to answer any questions you or the members of the committee may have. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Dent. Thank you, Mr. Fuentes, for your testimony, and thank you, too, for your kind words about the in vitro fertilization, IVF, provision that was included. A lot of people were very interested in that--Mr. Larsen I know, Ms. Brownley, Mrs. Roby, and many others all, you know, were very strong advocates. So thank you for your good words on that. INFRASTRUCTURE NEEDS WHEN NON-VA CARE IS INCREASING Also, just wanted to highlight the enormous infrastructure needs of the VA and how it is struggling, given all the aging buildings and the shifting veteran population. We know that last year the VA calculated its infrastructure shortfall as being as high as about $50 billion. Setting aside the problem that we are unlikely to be able to provide the funding required, is it appropriate to continue to plan a massive VA infrastructure effort when VA is increasing its use of non-VA care that uses private facilities? Mr. Fuentes. What we want to make sure is not forgotten or ignored when discussing the Choice program and Community Care is VA's ability to provide direct care, right? We have 80 percent of the VFW's membership relies on VA for their health care, and the community is part of the solution. As we increase VA's funding for Community Care we cannot ignore its medical services appropriation and the impact that construction has on VA's ability to meet the needs. The lack of funding for VA's capital infrastructure has really resulted in a lot of these wait-time issues because it takes way too long for VA to construct these facilities. We need to reform its capital infrastructure process, but we can't ignore that they need the funding to continue to expand. Mr. Dent. Ms. Wasserman Schultz. Ms. Wasserman Schultz. Thank you. IN VITRO FERTILIZATION Just to underscore your point about in vitro fertilization and other assisted reproductive technologies, for those unfamiliar with the process--and I won't go into any of the details, but it often does not work the first time, particularly for individuals who have a service-related injury and whose infertility is caused by their service or their injuries. So leaving it in place just for one fiscal year and having it expire would be devastating to people who are in the midst of a fertility cycle because these are--this is a process that, as you go through it, is dependent on nature's timing, not our fiscal year calendar. So it is really important that we make sure that we don't cut off the access to procedures that our service-related injured veterans might be in the midst of, denying them the opportunity to start their families. So I don't have a question. I just want to make sure you know you have my support. Mr. Dent. Thank you. Mr. Taylor. Mr. Taylor. Thank you, Mr. Chairman. And thank you again for your service and your advocacy, and yours as well, too. Go Navy. And I am Post 392. Thank you. Lifetime member. MENTAL HEALTH CARE AWARENESS INITIATIVES Quick question. Two things. First, you were mentioning spinal cord injuries. I didn't hear you talk about TBI or PTSD. Can you just mention if there are any initiatives with VFW and what you are supporting for increased help in those arenas? Mr. Fuentes. Sure. My testimony, as a co-author of the I.B., focused on the infrastructure needs of VA, but we certainly have made mental health care awareness a priority for the VFW this year. Our national commander actually launched a campaign to really change the direction and the narrative around mental health because there is a stigma around mental health where veterans fear going to receive the mental health care that they need. And it is really just as any other type of health or any other body part, it needs to heal. You need treatment to get better. So we certainly support expanded mental health care services and also believe that there is this need for outreach in order to really de-stigmatize mental health. Mr. Taylor. Thank you. USE OF VA VERSUS COMMUNITY CARE So with the understanding that there is a shortfall in the construction budget and construction plays a big impact, potentially, on wait times; also with the understanding that the VA, of course, is responsible for our veterans' care, does the VFW support more use of private care, whether it might be redundancies or duplication of primary care services, for example, where there are private facilities that are right there? Not, of course, the injuries that are unique to veterans, but other private care that is accessible and easily accessible. Do you guys support that or are you are saying no? Mr. Fuentes. Yes, we do. So just to be clear, VA needs to really conduct a manpower capacity analysis in each community. Health care is local--you know, there are areas in the country where it will take 6 months in the private sector to receive a dermatology appointment. In other areas like San Diego it is more readily available. So VA needs to see what the demand is for veterans in each community and see what its capacity to meet that demand, but also incorporate the private sector, but other public health care facilities like DOD, Indian Health Services, and federally qualified health centers, so to take that integrated approach so you are not duplicating and you are leveraging the best capacities in that community. Each community is going to look different. So sometimes there may be more private primary care, and in other areas private primary care may not be readily available so VA will have to build that. Mr. Taylor. Thank you. Thank you, Mr. Chairman. Mr. Dent. Thank you, Mr. Taylor. Mr. Bishop. Mr. Bishop. Thank you very much. Again, welcome, to you, Mr. Fuentes. CONSTRUCTION OF RESEARCH FACILITIES I am sure that Ms. Kelly will probably touch on this when she testifies, but I would like to know what the VFW's position is with regard to the construction of research facilities. In 2012, at the request of Congress, the department Office of Research and Development did an in-depth study and an analysis of the physical condition of the VA's aging research infrastructure, and they reported that the average VA building that houses research laboratories is over 50 years old. Of course, the American Psychological Association argues that VA lacks the state-of-the-art research facilities and that modern research can't be conducted in facilities that closely resemble a high school science lab. As a result, they are recommending $50 million for five major research facility construction projects and $175 million for minor construction maintenance projects. What is VFW's position on that? Do you support that analysis and that request, in light of the other request for major construction that is a lot more expensive? Mr. Fuentes. We fully support. Research is one of VA's four core missions, and you are absolutely right. I have also visited some of those research facilities that are out of date. You know, fortunately there are some that you see as an examples of what state-of-the-art research facilities should look like and, as a result, you see VA making a lot of progress and really leading the industry, in many respects, when it comes to research when they are given the proper tools. And that just speaks to, again, the lack of attention and, frankly, resources devoted to VA's capital infrastructure. Again, not ignoring the fact that we need to make sure that buildings are delivered on time and on budget, but the need for resources cannot be ignored. Mr. Dent. Thank you, Mr. Bishop. And, Mr. Fuentes, we thank you for your testimony. We really appreciate all that you are doing. Thank you very much. Mr. Fuentes. Thank you, Mr. Chairman. Mr. Dent. At this time I would like to call to the witness table Dr. Heather O'Beirne Kelly. She represents the American Psychological Association. Dr. Kelly. Good morning, Chairman Dent. Mr. Dent. Dr. Kelly, welcome, and you are recognized for 5 minutes. ---------- -- -------- Wednesday, March 29, 2017. AMERICAN PSYCHOLOGICAL ASSOCIATION WITNESS DR. HEATHER O'BEIRNE KELLY, DIRECTOR VETERANS AND MILITARY HEALTH POLICY Dr. Kelly. Thank you. Chairman Dent, Ranking Member Wasserman Schultz and members of the subcommittee I am Dr. Heather Kelly, a psychologist and director of veterans and military health policy at the American Psychological Association. I also come from a family of career military officers and combat veterans, so I do care deeply about these issues of veterans care, both personally and professionally. As you may know, APA is our country's largest scientific and professional organization, with more than 115,000 psychologists. And the Department of Veterans Affairs, or the VA, is the largest single employer of psychologists. VA's psychologists work both as research scientists and clinicians committed to improving the lives of our Nation's veterans. As the largest provider of training for psychologists, the VA also plays a vital role in equipping the mental health workforce to provide culturally competent and integrated mental health services to veterans and their families. I have provided more detail in APA's written testimony, so I would like to focus on three priority areas today and get to Congressman Bishop's question in particular, and I would like to also echo the priorities of my VSO colleagues who have gone before me. We agree on all of the same issues and, in fact, we were one of the members who co-wrote the research section of the I.B. So, Congressman Bishop, we thank you for mentioning our concerns about research facilities, and that is also echoed in the Independent Budget. You are not going to attract the highest-quality psychologists, particularly who are often both researchers and clinicians, to the VA unless they can do their research in facilities that at least have computers. We are not even talking about really high tech in some cases, but really that have desks and computers. So thank you for calling attention to that issue. So the three priority areas I would like to focus on are VA research, clinical care for veterans, and the scope of practice for VA psychologists. In terms of research, APA joins the Friends of VA Medical Care and Health Research coalition, or FOVA, in urging the subcommittee to provide $713 million in fiscal year 2018 for VA medical and prosthetic research. As my colleagues have mentioned, a strong VA psychological research program provides the scientific foundation for high-quality care within the VA system, which is absolutely vital for serving veterans suffering with post-traumatic stress disorder, PTSD; traumatic brain injury, or TBI; substance abuse; aging-related and other disorders requiring physical and psychosocial rehabilitation; and, of course, suicidal ideation. We have better treatments now for all of these issues because of your prior investments in VA intramural research, and we desperately need to further advance our knowledge of these signature wounds of war to alleviate veteran suffering-- and not only to alleviate suffering, but to help them regain lives of purpose and of joy. In terms of clinical care, APA echoes the many concerns and suggestions of the VSOs regarding VA mental health services outlined in their Independent Budget, as I have mentioned. We also share VA Secretary Shulkin's recently announced priorities related to enhanced suicide prevention efforts, extension of mental health care to veterans with other-than-honorable discharges, and expansion of caregiver benefits to include pre- 9/11 veterans' families. These were the initiatives, as you, I am sure, know must come with more resources to be implemented. If you open the doors wider, you need more money to serve those people whom you have invited in. We urge Congress to provide ample resources for VA mental health programs and the VA psychologists who serve veterans through increased hiring of VA psychologists--and I would ask that we finally make the move and move psychologists into the Title 38 hiring authority; by holding community partners and contractors to the high standards of quality assessment and care that exist in the VA; increasing support for primary care mental health integration models and telemental health services; and replacing the scheduling package in the electronic medical record. All of these are critical for improving patient experience and patient care within the VA. And finally, within the terms of the VA psychologists' scope of practice and improving mental health care access at the VA, I strongly urge you to direct the VA secretary to grant specially trained VA psychologists prescriptive authority analogous to that granted by the Department of Defense almost 20 years ago. DOD has had zero adverse effects or complaints reported during that entire period, and if any of you are familiar with health care, zero adverse effects and zero complaints are unheard of. DOD psychologists--medically prescribing psychologists-- have served thousands and thousands of active duty military personnel. This is another safe, effective way to increase mental health care access, and the VA is behind in granting this authority to appropriately trained psychologists. I should mention, these are psychologists like me, who have master's degrees and Ph.D.s and then go out and get a separate master's in pharmacology on top of their existing M.A. and Ph.D. These are really well-trained psychologists and the only doctoral-level professionals in the VA who do not have prescribing authority. As I mentioned, VA is behind in granting this authority, and behind not only DOD but behind States like Louisiana, behind territories like Guam, and behind the tribal reservations of Indian country in granting this prescribing authority. A veteran in Pennsylvania, a veteran in Florida, a veteran in Georgia, a veteran in Virginia should have access to the same high-quality mental health care as a nonveteran in Louisiana or Guam. And remember that the power to prescribe is also the power to un-prescribe medication, which is a particularly important issue facing both civilian and veteran populations across the country. So I urge you to direct the secretary at the very least to begin with a pilot program in VA, particularly in VA medical centers with the most dire mental health care access needs, and those tend to be the rural areas. In conclusion, the VA, in the face of increasing demand for mental health care and recognized access difficulties in rural areas in particular, must remain a pioneer in the health care arena by allowing specially trained and certified psychologists to work at the full scope of their practice and to serve veterans with the expertise and dedication they already employ. Thank you for the opportunity to testify, and I am happy to answer questions. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] PREVENTING VETERAN SUICIDES Mr. Dent. Thank you, Dr. Kelly, for your testimony. We very much appreciate your being here. I only have one quick question. In our hearing last week with the VA inspector general we heard about the problems with the VA suicide hotline. Dr. Kelly. Yes. Mr. Dent. More generally, I guess, how does your association think the VA is doing in its efforts to prevent veteran suicide? Dr. Kelly. In general, VA mental health care is superior to any other mental health care anywhere in the world. I have veterans in my family, and if they had mental health issues I would send them immediately to the VA. So in general, superior care. All the reports coming out of RAND and other reports you have seen, VA mental health care is either equal to or superior to that you can get often in the civilian sector. Suicide prevention is as important as it is difficult. It is a very low base rate behavior that we desperately want to prevent, and I would say that VA has made remarkable strides into lowering the rates of veterans who come to the VA for their mental health care. The suicide rate for veterans who get care outside of the VA is much higher, so we want them to come to the VA for their care. There are issues with the suicide hotline that need to be resolved. There are issues with access more than with the quality of VA mental health care, so if we can increase access--and there are a variety of ways to do that; pulling apart the VA's integrated system is not one of them. We are watching very carefully the hotline in particular. I think most of the issues have actually been with the civilians who call the prevention line and are more often put on hold than the veterans. So we have issues with the suicide hotline in general, but are watching it very carefully. And I think they are being taken very seriously by the VA. Thanks. Mr. Dent. Thank you, Dr. Kelly. Ms. Wasserman Schultz. TRAINING FOR CRISIS HOTLINE Ms. Wasserman Schultz. Thank you, Mr. Chairman. Just to follow up on the chairman's line of questioning, we did extensively ask the I.G. questions about problems with the crisis hotline, and training appears to be one of the significant obstacles that they have. Have you given them any guidance on how they can improve their training? What it appears is that there is very inconsistent training from the national hotline to the local crisis lines that are housed at each medical center. Dr. Kelly. And that is a classic issue, frankly, and there are a couple things I would like to say about that. One is it may seem unrelated, but some of the restrictions on federal employee conference attendance and travel have actually affected VA training rather substantially, and so anything you all can do to get rid of the restrictions on federal employees of all kinds, but VA federal employees, traveling--there were things in Florida happening where a number of psychologists were hired a couple of years ago by the VA and weren't allowed to travel six miles down the road in their own car for the mandatory new mental health training. So there are some really crazy ramifications of some of those rules, so I am not surprised that training is an issue. Part of what you all need to know we are all struggling with is that VA has always provided community care, and this is an issue of care when more people in the communities are staffing those hotlines. It is very important that all community partners be trained and held to the same standards of assessment and care as VA staff and mental health professionals are, and right now that is not the case. And so I echo your concern about training and maintaining and assessing quality of care. TRAINING THAT VA PROVIDES VERSUS PRIVATE SECTOR TRAINING Ms. Wasserman Schultz. And speaking of training, that was actually my next question in terms of the difference in training that the VA provides versus the private sector training. Are they comparable? You alluded now that they are not. Where would you think there need to be improvements on the VA side of training, or is the VA already superior, not just on the crisis line, but across the board? Dr. Kelly. Thank you. It is a great question and one that we are really involved in trying to tackle, because obviously at the American Psychological Association, I am in charge of the side that deals with military and veteran populations, but we certainly care very much about our civilian providers. This civilian-military divide--this is one of the places where it shows. And so we have been very involved with partners like PsychArmor, the VA itself, who have a number of modules of training in military culture and veteran cultures, thorough, that have been developed and vetted and provided for free to civilian providers. PsychArmor now has MOUs with all of the major health care providers--civilian health care providers and offers corporations, staff, counseling centers at colleges training in military culture and veterans culture for that exact reason, is to begin to bring some of the civilian providers at least some more competence in that area, which is completely separate from some of the things you have seen, again, in some of the RAND reports. ``Ready to Serve'' is the most important recent report showing that even on some of the evidence-based psychotherapies, which APA obviously recommends for treatment, in particular with PTSD and depression and anxiety, civilian providers are behind VA providers in their provision of evidence-based mental health care. And so when we talk about moving veterans into getting more community care, I have very deep concerns about the quality of the care that they would receive there. And so we are working very hard to make sure that any relationship that the VA has with community providers must entail training and assessing and constant monitoring of that care in the community to make sure that our veterans are getting the quality of care that they deserve. Ms. Wasserman Schultz. Thank you. Mr. Dent. Mr. Taylor. Mr. Taylor. Thank you, Mr. Chairman. Thank you for what you do and all those degrees that you got. [Laughter.] Thanks a lot. We really appreciate it. LACK OF UNIFORMITY IN SUICIDE PREVENTION POLICIES Quick question along the lines of the suicide hotline. That is something that has been talked about, but one of the other things that we talked to the I.G. with, that my office actually has requested a report on is not just the suicide hotline but the physical walkups, people come to the facilities and say, ``Look, I am suicidal,'' or they exhibit those tendencies or something like that, and the non-uniform-type policy with the VA. One of the things that the I.G. said was that there is decentralized across the whole VA spectrum. Has APA helped with that in terms of trying to create a uniform policy for the VA across everywhere that says anyone who comes in, that they are not turned away and the unfortunate thing happens, potentially? Dr. Kelly. Yes. I have been very vocal--Dr. Shulkin will tell you--with him personally and with his staff for many years on this issue in his previous role and now in his current role. My understanding is that any veteran who calls or appears at a VA medical center with urgent self-harm or harm-to-others concerns will be seen immediately. There are some metrics there that we are watching very carefully--that is supposed to be true of all VA medical centers. I am not sure if they have reached that at this point. But same-day urgent care absolutely is the standard that VA is looking to meet. And I think sometimes the issue--two things: One, that is precisely why you also want the primary care mental health integration. You want someone who is much more likely to walk up into an E.R. or to come through primary care to get automatic assessment. You know, a lot of these people are not going to tell you-- some will, but some won't tell you and a really quick but really careful diagnostic assessment of anyone that comes in-- frankly, we find out about suicidal behavior much more often by asking about sleep issues and some other concerns. I mean, it is the gateway into a lot of health care problems for veterans in particular. So we want psychologists in most VA facilities--in all of the big ones, and we are trying to make sure it goes all throughout the VA. There are psychologists embedded in primary care for those reasons of stigma that you have heard about. You know, someone doesn't have to walk to another floor with a door that says ``mental health'' above it, but literally gets a warm handoff to a physician or a psychologist standing right there to talk about those issues. So same-day access is vital, and I think it is certainly a VA standard. What is often the issue is the second appointment, so how quickly can that veteran then be seen, depending on what the diagnostic assessment is, for the next kind of care--if it is outpatient, for the next level of outpatient care? There are never enough inpatient beds anywhere in the entire U.S. health care system, but in the VA also we need more inpatient beds for psychiatric issues. But certainly same-day access, and this is an issue I work on every day with the VA and the VA psychologists in particular. Mr. Taylor. Thank you very much. And just we would love to speak with you offline about the pilot program. So thanks. Thanks a lot. Dr. Kelly. Thank you. Mr. Dent. Thank you, Mr. Taylor. Mr. Bishop. Mr. Bishop. Thank you very much. And, Dr. Kelly, thank you so much, and we appreciate your insights as well as your level of training, particularly in pharmacology. Dr. Kelly. Well, I didn't go get the extra one in pharmacology. My colleagues have, but I can talk to you but I can't give you any medication. Mr. Bishop. Okay. That level of training and becoming a pharmacologist is probably unique among the VA psychologists-- -- Dr. Kelly. Yes. Mr. Bishop. We, at the committee, have to deal with the tension between scope of practice issues, the professional associations and the VA, that often has difficulty getting the high-level professionals in the specific disciplines. And so the prescribing authority that you recommended sometimes brings us into conflict with the professional associations, the M.D.s, the medical doctors who say that, ``No, no, they don't need to have that.'' And so we get in the middle between what is the best care for veterans and what will protect veterans, versus what is most convenient and most economical for the VA. So that is something that we need your help in dealing with. CARE FOR SEXUAL ASSAULT VICTIMS But I wanted to explore another issue with you, particularly as a psychologist. We are now experiencing the first generation of women who have served in combat roles, and many of them will return home with the same psychological scars as men. But according to the Department of Veterans Affairs, women have a higher risk of exposure to sexual harassment and sexual assault than men, which may lead to trauma. Furthermore, many of the women will be in their teens and their early 20s when this happens. In your opinion, is the VA adequately postured to ensure that there is adequate access to quality care for women veterans to deal with these myriad of issues that they will be experiencing in escalating numbers going forward? Dr. Kelly. Let me touch on your first question and then your second. In terms of the first question and the turf issues between medicine and other disciplines for whom prescribing authority is appropriate and the fullest extent of our practice, I will tell you what I told a young staffer who was trying to work with me on this issue: Regardless of what you may hear from the medical societies, many of whom have been supportive of our prescribing authority in the States, in Illinois in particular, I refuse to do turf battles over people who have served in actual battles. So that is something that people in associations need to get over and deal with, and I care about what care the veterans get. And if you have a psychologist in the Department of Defense who can prescribe medication and other kinds of therapy--which are always going to be the first attempt for us; we are never going to go to medication first, and that is something I think that is incredibly valuable--they can walk across the hall in El Paso from seeing a DOD psychologist and can't see a VA psychologist once that member is now a veteran who can provide the same service. That doesn't make any sense to me. But the turf battles are purely that, and we need to get over that. In terms of the second question, much more serious question of sexual assault and sexual harassment in the military for both men and women, but because women are increasing in numbers and increasing percentage of the services and now the veteran population, it is a massive problem and we are very concerned about it. In terms of the VA's capacity to handle, I have seen great strides in terms of their establishment of the women's office. They have women's research programs going that are just exquisitely set up. So I am very impressed with what I see. Certainly, you know, women veterans' suicide rates are much higher than the cohort of women in the civilian population, which should not be a surprise to us. Most people who die by suicide die with guns, and women civilians don't tend to have guns or be as accurate with guns, and women veterans are because that is the nature of their work. So we have our work cut out for us to address the issue of guns and suicide in the veteran population very directly without being shy about it. I think that the VA is making some strides in that area as well, but women veterans need more access, just like any other issue, be it fertility-related or mental health-related. Those are often interrelated. There need to be enough mental health professionals within the VA to see them, and so it always comes back to just the staffing level. Mr. Bishop. Thank you. Dr. Kelly. Thank you. Mr. Fortenberry [presiding]. Thank you, Dr. Kelly. I am Congressman Fortenberry from Nebraska and I am pinch- hitting for the chairman for a moment, but I have a question, as well. Before I enter it in mind, you said sexual assault is a massive problem. Would you unpack that a little bit more, please? Dr. Kelly. So in the civilian population and the veteran population, certainly rates of sexual harassment are quite high and sexual assault I think is on the minds of many of us, in particular in relation to the military with some of the issues going on on the online issues that we are facing. Mr. Fortenberry. With the appropriate attentiveness to this problem and the growing awareness, and the creation of infrastructure and policy to deal with this more directly, do you think that this is declining or is it still in a phase where we do not have appropriate management of this grave problem? Dr. Kelly. So as a good scientist I am loath to go beyond the data. I would say I don't see it declining. I think you see more---- Mr. Fortenberry. Why is that? Dr. Kelly. I think there are multiple reasons for that, one of which is it is hard to detangle sometimes whether the actual incidence is increasing or whether people are reporting and feeling more comfortable reporting. It is hard to untangle that. Mr. Fortenberry. That actually could be progress, even though it shows as a statistically higher increase, the progress that this is---- Dr. Kelly. It could be. It could be. And we have ways of addressing that. Mr. Fortenberry [continuing]. The culture is creating mechanisms for reporting and decreasing inhibitions. Dr. Kelly. I hope that that is the case. I hope that it is solely an increase in reporting. I would not stake my expertise on that. I think it is a particular issue, and I think that women veterans that, anecdotally with whom I talk--and male veterans who are sexually assaulted--this is a population that is hardy and tough and they want to keep doing their jobs. I come from a military family. I understand the hierarchy; I understand the need for it. All of those issues provide a context in which coming forward is very, very difficult, and the more we can do to set up infrastructure such that commanders deal with that appropriately, the more that I think we will see it dealt with appropriately. Mr. Fortenberry. In this regard, you mentioned that women veterans suicide rates are higher than nonveteran populations. Are their suicide rates higher than male veteran populations? Dr. Kelly. I would have to look at the data on that and by age, because suicide has sort of a bimodal activity, more likely in the young and more likely in the old. I would have to look and see for women veterans if their rate is higher than their male veteran counterparts. I do know that it is significantly different from women civilians of their same age. Mr. Fortenberry. And then the correlation to a culture that, as you are saying, as we know, has had difficulties with the issue of sexual assault, there has got to be a variable there that is significant, I would think. Regarding sleep, I was interested to hear you say that. I was talking with--actually, there is a psychologist here in the House who is a member of the military and he has counseled commanders who have sometimes, in terms of punishment, increased the duty and assignments on young people that create a cycle of a lack of sleep and then suddenly we are into deeper problems. And his first recommendation is, ``Go to bed.'' Dr. Kelly. Yes. Mr. Fortenberry. ``Talk to you in 2 days.'' Dr. Kelly. Yes. Mr. Fortenberry. I thought that was very insightful, and I think that even medical school training is shifting in this regard. Dr. Kelly. I was just going to say the analogy between training physicians in particular--you know, my dad was a nuclear submariner, and one of Rickover's boys, and the lack of sleep standing duty on subs is just immense, but we do the same thing to our physicians. And the results are life-or-death sometimes. Mr. Fortenberry. Maybe we should make note of that here in Congress, as well. Dr. Kelly. Yes. Mr. Fortenberry. Adequate rest. Finally, I have been working with an outside entity that really has a fascinating project. There is a pilot project going on. Their outcomes are measurable in terms of the increase in wellness, the reductions in mental health stress, plus harder-to-define outcomes such as feeling a sense of belonging to your community for wounded veterans, disabled veterans participating in group recreational programs. This one is bicycling. So apparently the new secretary is considering authorizing VA medical center directors to support this particular activity. I think this is very smart. I mean, we have got demonstrable outcomes in one area, and if VA directors locally are empowered with community volunteers and outside entities that will actually create these programs that have continuity but are embedded inside the VA. Dr. Kelly. Yes. I would love it. Mr. Fortenberry. It is not--as opposed to outside things, which are, of course, excellent and good, but bring embedded with the VA creates mechanisms of continuity that aren't always there. Dr. Kelly. I couldn't agree more. You know, at the Warrior Games--and I was at Invictus this past year when it came to America--the physical activity and all of the equine groups, the Team Rubicon, the Red White and Blue, all of these groups, many of which have the physical component, I agree. These are young men and women who are at the height of their athleticism. There is a reason why they still enjoy doing those activities when they come home. And at the same time, what we often--again, anecdotally-- talk to veterans about is the--and what a lot of civilians don't understand when they say they miss being in the military at a time when we are at war--is they miss the sense of belonging and belonging to a group that has purpose. So those kinds of programs serve all of those, and we are very much in favor of them. Mr. Fortenberry. Great. Thank you for your testimony. Dr. Kelly. Thank you. Mr. Dent [presiding]. Thank you, Dr. Kelly. And at this time I would like to invite our final witness to the desk. It is Mr. Fred Sganga. Fred, we appreciate your being here with us today, and I know you are a legislative officer at the National Association of State Veterans Homes. We appreciate your participation this morning and we look forward to receiving your testimony. You are recognized for 5 minutes. ---------- Wednesday, March 29, 2017. NATIONAL ASSOCIATION OF STATE VETERANS HOMES WITNESS FRED SGANGA, LEGISLATIVE OFFICER Mr. Sganga. Thank you, Chairman Dent, Ranking Member Wasserman Schultz, members of the subcommittee. On behalf of the National State of Veterans Homes, thank you for the opportunity to provide testimony recommending $300 million for the Grants for State Extended Care Facilities program, commonly referred to as the State Home Construction Grant program, for fiscal year 2018. As you know, for more than 125 years state homes have been in partnership with the Federal Government to provide long-term care services to honorably discharged veterans. There are currently 153 state veterans homes located in all 50 States and the Commonwealth of Puerto Rico. The National Association of State Veterans Homes, which represents the homes, was established in 1952 to promote strong federal policies and share experience and knowledge among state home licensed nursing home administrators to allow us to care for our Nation's heroes with the dignity and the respect they deserve. With over 30,000 beds, the State Veterans Home program is the largest provider of long-term care for our Nation's veterans, offering skilled nursing care, domiciliary care, and adult day health care. The Department of Veterans Affairs provides state homes with per diem payments for these purposes, which covers about one-third of the daily cost of care to these veterans. VA also provides construction grants to build, renovate, and maintain the state veterans homes, with the States required to provide at least 35 percent of the cost for such projects in a matching fund program. The State Veterans Home program allows the VA to leverage federal resources to expand long-term services and support for veterans through partnerships with all 50 States. Federal State Home Construction Grants are awarded based upon when a grant is received, where it falls among the statutory priority groups, and when state matching funds are certified as available. Projects that have been certified state matching funds are included in the VA's priority group one projects list, which includes critical life and safety projects as well as the new construction of state homes in states that will have a great need, as defined in the statute. Grant requests that do not yet have state matching funds secured are placed in VA priority group two through eight on a list according to when they are submitted and according to their specific priority status. Over the past several years VA has requested, and Congress has provided, between approximately $85 million and $90 million annually, which was barely enough to keep up with the new grant requests from States and failed to make any significant headway with the existing backlog of priority one projects awaiting federal funding. The most recent VA State Home Construction Grants priority list for fiscal year 2017, released in January, includes 99 requests; 57 are in priority group one, with a total federal cost share of approximately $639 million, an increase of $89 million to the backlog compared to fiscal year 2016. There are also additional 42 grant requests among priority two groups through eight. Once those projects have been certified with state matching funding, they will, too, move to priority list one. Overall, there are more than $1 billion of State Home Construction Grant requests that have been submitted to the VA. With just $90 million for fiscal year 2017, VA will only be able to provide funding for the first 10 projects on the list, leaving 47 priority one projects awaiting a future year's funding. For each of the past three fiscal years--fiscal year 2015 through fiscal year 2017--NASVH has recommended to Congress--to the VA and Congress that $200 million be allocated for the State Home Construction Grant program, a sum that was also recommended by the Independent Budget organizations. For fiscal year 2018 NASVH recommends that $300 million be provided to the State Home Construction Grant program, which would provide sufficient funding to cover approximately half of the pending priority one projects. The I.B. also supports the recommendation of $300 million for fiscal year 2018 funding. At this time it is not clear what level of funding the administration will request for fiscal year 2018. However, if the same inadequate amount of $90 million were to be appropriated for fiscal year 2018 it would support just the next seven priority one projects. Given the recent trends of state matching funding, it is likely that this will result in little or no net decrease in the existing backlog of $639 million priority one projects. Among these projects that would not be funded at that level are two in Pennsylvania, two in Florida, two in California, and two in Ohio. All of those and 17 others, however, would receive funding next year if the $300 million were appropriated for fiscal year 2018. As the veteran population continues to age and federal budgets continue to get tighter, there is no better investment of federal long-term care dollars than the State Home program, and we urge the subcommittee to significantly increase the funding for next year. Mr. Chairman, I would also like to bring to the subcommittee's attention another issue that is beginning to have a significant impact on the level of funding required to sustain the state veterans home system: the VA's new Community Living Center, or CLC, design and construction guidelines. These new guidelines call for the state homes to use what is called the small house design when constructing new or renovating existing homes. The small house design model is based on housing veterans in small group homes, or pods, each with their own kitchen, cleaning, and other basic facilities, along with separately assigned staff for each small group home. The homes are physically connected through common areas for social, medical, and other purposes. However, compared to the economies of scale that are achieved in traditional state veterans homes, the small house design has proven to be between 30 to 40 percent more expensive both to construct and to operate, imposing new financial burdens on the States. While some States have favored the small house design, others have found that many of the veterans prefer more traditional, larger state home model. NASVH is recommending that the VA modify the Community Living Center design and construction guidelines to allow States sufficient flexibility in using the small house design so they can better meet the different needs of their respective veteran populations in a financially responsible manner. Without such flexibility, Congress will need to significantly increase the level of funding for State Home Construction Grants to make up for the increased per capita costs as well as per diem rates to cover the higher operating costs. Mr. Chairman, that concludes my testimony. Thank you for the opportunity to be here today before the subcommittee, and I would like to answer any questions you might have. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Dent. Thank you, Mr. Sganga, for your comments. I also appreciate the work your folks are doing in our State, with six state veterans homes. MISMATCH BETWEEN LOCATION OF VETERANS AND STATE HOMES Mr. Sganga. Thank you. Mr. Dent. Just one question: Given that veterans as a group, are moving away from many of the areas in the Northeast and Midwest where state veterans homes are located, would it be better to contract out for long-term care rather than to continue to build or repair facilities in areas with declining veteran populations? Mr. Sganga. In my experience as a licensed nursing home administrator for over a 30-year period I do find, Mr. Chairman, that you will have Northeastern retirees that will go to other parts of the country for retirement, but I will tell you a significant amount of those veterans and their spouses return back to their original place of residence in order to receive long-term care services. Mr. Dent. Are you saying my constituents are heading down to Ms. Wasserman Schultz's district? Is that what you are telling me? Mr. Sganga. Yes. But they come back to die back in Pennsylvania. I mean, that is what happens. Mr. Dent. On that point, there are statistics showing that if you are born in Pennsylvania you are likely to die in Pennsylvania. Mr. Sganga. Right. I have seen that. And spend 20 years in Florida. Mr. Dent. People in Pennsylvania do like to spend time in Florida. Maybe not 20 years, though. Mr. Sganga. But I think that answers the question. The whole notion of long-term care, the trend that we are seeing is a lot more of our veterans are coming to homes much older. Typically in my home--I am the executive director of the Long Island State Veterans Home in Stony Brook, New York--it is not unusual for a World War II veteran to be entering in their early 90s to the home. Mr. Dent. Thank you. Ms. Wasserman Schultz. Ms. Wasserman Schultz. Well, from a Long Island girl to a Long Island boy---- Mr. Sganga. There you go. Actually, I was born in Queens. Ms. Wasserman Schultz. Me too--Forest Hills. Long Island, Jewish, just like most of my constituents. Which is why, Mr. Chairman, I always say that you should care about two people who represent you, particularly when I am up north: the person who represents you now--say, Mr. Dent--and me, because I am going to represent you when you retire and move to my district in about 20 years. ALTERNATIVE TO LONG TERM FACILITIES That having been said, Mr. Sganga, I do share the interest of the chairman in answering the question, particularly because people always prefer to age in place if they can, that not only should we explore long-term care options in other places, but-- besides just the Northeast, where I guess more of the homes are located and being constructed. I mean, we do have state nursing homes in Florida, and hopefully we will continue to build more of them because there is a real shortage of beds. But I would think that your organization would be interested in trying to make sure that we could provide services to veterans where they would like to age, not necessarily in a particular home or facility. So have you ever explored broadening your mission? Mr. Sganga. That is a great question. Actually, three of our homes--Stony Brook, New York; Hilo, Hawaii; and Minneapolis, Minnesota--provide medical model adult day health care services, so that is one way that we do that. We would like to expand that. I would like the subcommittee to know that we have been waiting 8 years for the VA to have the adult day health care regulations revised. We think as an association this is a disgrace, in terms of the time that it is taking to revise those regulations. We have about 16 to 20 States who are on standby now to provide medical model adult day home care--health care to veterans and their spouses and widows, as well as gold-star parents, but they are not moving forward until they see publication of those regulations. Ms. Wasserman Schultz. Eight years? Mr. Sganga. That is correct. Ms. Wasserman Schultz. It has taken 8 years for them to---- Mr. Sganga. We don't have them yet, so---- Ms. Wasserman Schultz. Why? Mr. Sganga. You will have to ask the VA. Ms. Wasserman Schultz. I will. Mr. Sganga. Okay. Thank you. Ms. Wasserman Schultz. Thank you, Mr. Chairman. Mr. Dent. Thank you, Ms. Wasserman Schultz. I would like to recognize at this time the vice chairman of the subcommittee, Mr. Fortenberry. Mr. Fortenberry. Thank you, sir, for appearing. The veterans homes approximate to my district seem to be very happy places, to be honest with you. Mr. Sganga. That is correct. VETERANS ORAL HISTORY PROJECT Mr. Fortenberry. And the decided focus on the particular needs of the veteran but also the celebration of the lives of the veteran and an inclusion of families is a dynamic that I have witnessed that, frankly, I am very proud of, so thank you for your work. One thing I would encourage you to do if you haven't already is there is a veterans history project coordinated through the Library of Congress, and we have made several offerings to veterans in our community--one at the vets home, which we actually facilitate the recording of the veterans' stories. And I remember one time a woman veteran, World War II veteran, told me, ``Well, I didn't really have anything great to say about my service in the war. I mean, I joined after my five brothers joined.'' I said, ``What? There were six of you from one family?'' ``Oh, yes.'' And I said, ``Well, tell me''--in other words, this person, her own greatness, her own willingness to sacrifice, her own understanding of what she did as simply dutiful and not extraordinary was a reason itself that it was so extraordinary and a reason to capture that memory. So one of the things I just wanted to suggest to you is if it is not already a part of the culture that for veterans who are in your homes to get those stories recorded and be permanently here in our nation's archives. And I think it has a lot of meaning to them, particularly the older veterans for whom, as you are quite aware, there wasn't a culture in which people talked about their service or what they saw. In fact, we did one of these recordings with a veteran--a World War II veteran; I believe he was about 90 at the time-- who, through that interview, we actually were able to determine that there was post-traumatic stress disorder that had never been caught, diagnosed. And now he is receiving some treatment at a very old age. Nonetheless, it is a great way to continue this celebration of vet services, and you, as a platform, a home for so many veterans, I think the more we can do to capture those stories, it is not only beneficial for the Nation but it is a great service to the individual. Mr. Sganga. Mr. Vice Chairman, thank you for recognizing the special culture that does exist at any state veterans home. I can tell you that a typical nursing home in the United States of America is probably 75 percent women, 25 percent men. In Stony Brook where I am, and a lot of my colleagues, we are about 90 percent men and 10 percent women. So that does create a little bit of a different atmosphere. If we were to return in 50 years I am sure it would be a lot different. But as a licensed nursing home administrator in a state veterans home, we are constantly looking out for the needs of both men and women whose service provided the freedoms we enjoy today. And I want to let you know that, indeed, a good portion of our state veterans home program participates in the Veterans Oral History Project. Mr. Fortenberry. Great. Good. Thank you. Thank you, Mr. Chair. Mr. Dent. Mr. Bishop. Mr. Bishop. Thank you, Mr. Chairman. Mr. Sganga, thank you so much for your service, and thank you for supporting the grants for state extended care facilities programs. All of our States have stressed budgets and, of course, that program would certainly supplement what the States are able to do, and so I thank you for that. I don't have any questions for you. I yield back, Mr. Chairman. Mr. Dent. Thank you, Mr. Bishop. And before we adjourn I just want to make a few comments. First, the Capitol Police advise us that Independence Avenue is still blocked due to an ongoing investigation or an incident, actually. For your safety we would ask that our witnesses and guests use the first-floor exit for the Rayburn Building, which is open to South Capitol Street. You will be directed to walk east away from the mall. So we just wanted you to be aware of that. I would also like to mention to the group that today's hearing is being webcast. It will be available on the committee's Web site, Facebook page, and YouTube link, so I wanted you to be aware of that, as well. And finally, I just wanted to say thanks to all of our witnesses today and to your organizations for the very important work that you are doing on behalf of our Nation's veterans. Your advocacy and your dedication and commitment are deeply appreciated, and we just want to say thank you for that. So with that, this hearing will be adjourned. Our next hearing is on Wednesday, May 3, with the secretary of the VA. Thank you all. Have a good day. Wednesday, November 15, 2017. VETERANS AFFAIRS ELECTRONIC HEALTH RECORD WITNESSES HON. DAVID J. SHULKIN, SECRETARY, DEPARTMENT OF VETERANS AFFAIRS JOHN H. WINDOM, PROGRAM EXECUTIVE, ELECTRONIC HEALTH RECORD MODERNIZATION SCOTT R. BLACKBURN, EXECUTIVE IN CHARGE, OFFICE OF INFORMATION AND TECHNOLOGY Opening Statement Chairman Dent Mr. Dent. Good morning. Well, thank you all for coming out. We have convened this hearing with the Secretary of the VA to discuss a very important and expensive issue that was first presented to us last week--VA's plan to sign a contract with Cerner Corporation for an electronic health record. The record will use the same platform the DOD has purchased from Cerner for its health record. Since this need developed after the fiscal year 2018 budget was submitted and before we received the fiscal year 2019 budget, the VA proposes to begin funding it through a reprogramming request. We understand that you have not completed negotiations with Cerner, so there are some total cost issues you are not able to discuss in open session out of concern about generating bid protests. We intend to pursue those issues in a closed session that will follow this one. However, we are confident we can discuss the major elements of the contract in public. For veteran members of the committee like Chairman Frelinghuysen and Ranking Member Lowey, the creation of a electronic health record has become a tired refrain. They have been hearing about it since the mid-1990s. VA Secretaries have come and gone, promising that their records were achieving interoperability or that they were developing the same record as DOD or that they had decided to have two different systems that would talk to each other. Now the pendulum has swung back once again to creating one record to be used by both departments, the position this committee has argued for from the start. The number of years and dollars that have been wasted reaching this point is extremely troubling. Mr. Secretary, we know that we cannot lay this past history at your feet, but you will forgive us for being a little skeptical that, at this late date, the VA has now found the answer to its electronic health record conundrum. We know you are anxious to sign the contract with Cerner, but the committee will need more information before it is comfortable with approving this first step down a long and expensive road. Before we ask you to give a statement, I would like to inquire if Ranking Member Wasserman Schultz has any comments. Ms. Wasserman Schultz. I do. Thank you, Mr. Chairman. Mr. Dent. You are recognized. Opening Statement Ranking Member Wasserman Schultz Ms. Wasserman Schultz. And welcome, Secretary Shulkin. Thank you, Mr. Chairman. And we do appreciate you being here on fairly short notice so that we can discuss the VA's efforts to modernize its electronic health records platform. But I really think, especially because we have some new members, including a relatively new member, myself, that we walk everyone through the EHR timeline thus far and the unbelievably lengthy process that this has been, even for government. Mr. Chairman, as you know, in 1998, during the Clinton administration, a Presidential review directive acknowledged that DOD and VA systems were not compatible and that actions should be taken to identify data exchange systems. In 2003, President Bush established a task force to improve healthcare delivery for veterans, and it recommended that the Departments develop an interoperable record. In 2007, the President's Commission on Care for America's Returning Wounded Warriors also supported interoperability, the genuine ability of these two systems to seamlessly exchange and make use of the other's information. Then, in 2009, President Obama announced that DOD and VA would be working together to build a seamless system of integration. Fast-forward to 2011, when VA Secretary Shinseki and DOD Secretary Gates announced plans to create a single electronic record. However, just 2 years later, in 2013, the two Departments announced that they would no longer create a single, common health record and, instead, solely focus on interoperability. The VA chose to modernize its existing VistA health record in- house, while DOD announced it would contract a commercially produced health record. In response to that problematic announcement, the House- reported fiscal year 2014 MILCON-VA bill directed the VA and DOD to develop a single electronic health record. I stress: directed the VA and DOD to develop a single electronic health record. Unfortunately, the committee was forced to remove that requirement after discussions with the House Armed Services Committee. The final appropriations language permitted either a single system or two interoperable records. After that battle was lost, DOD went on to award a $9 billion contract to Cerner to develop the DOD health record, while, at the same time, VA efforts to modernize VistA underwent further review. Mr. Chairman, I believe we can agree this would not have led to genuine interoperability, and the patchwork of the Joint Legacy Viewer has left much to be desired. Finally, earlier this summer, the VA announced its intention to award a single-source contract to Cerner to provide VA the same electronic health record DOD is developing, as well as follow the same rollout cycle being operated by DOD. So, Mr. Chairman, this issue could have and should have been resolved years ago. It is no wonder that our constituents get incredibly frustrated with the insanity of the bureaucracy of many Federal agencies, and this is a textbook case. When I think about the time and resources that have been wasted over the years on this endeavor, it is easy to see why members have such strong feelings and such frustration concerning this issue. And I share the chairman's recognition that it is certainly not at your feet, but it is at your predecessors' feet and people who have been working on this for probably all of those years. And while I am pleased that the VA is moving in the direction of creating an integrated health record system, finally, with DOD, like we thought should happen years ago, I was not thrilled about getting a $782 million reprogramming at the end of October that needed to be acted on by November with no real details. I am also concerned about how this new system will work with the private-sector providers. And that is a question that I hope you are going to address in your testimony. If not, I will ask you. With veterans taking advantage of community care in significant numbers, we need to ensure that the new EHR system will be able to seamlessly exchange data between the private sector and the VA. Years down the road, I hope to not be at a hearing where we are discussing our frustration over the less-than-complete interoperability and ability to seamlessly move electronic health records from DOD and military service all the way through, including to the private sector. So I look forward to the opportunity to hear your thoughts and share my concerns. And I yield back. Mr. Dent. I thank the ranking member. At this time, I would like to recognize the chairman of the full committee, Mr. Frelinghuysen. Opening Statement of Full Committee Chairman Frelinghuysen The Chairman. Great. I want to thank you, Chairman Dent and Ranking Member Wasserman Schultz, for scheduling this hearing. And I want to thank everybody for being here today. Dr. Shulkin, it is good to be with you and your colleagues. We are here today because of your reprogramming request for additional resources for your electronic health records project. As all of us are painfully aware, the VA and DOD electronic health record compatibility, as has been mentioned, has been an issue for over 20 years. In fact, 4 years ago, your predecessor, Rick Shinseki, and Department of Defense Secretary Chuck Hagel met with Mrs. Lowey and with my predecessor, Hal Rogers, and made a fairly public commitment to get the damn job done. And some sort of a solution was supposed to be reached within a year. It was never done. DOD went one way; VA went another way. Despite those decisions, Congress has supported in a bipartisan way, the joint effort by providing billions of dollars over the years for these different projects. So when the committee was asked on short notice to approve a reprogramming to get yet another proposed project started and one that would require many billions of dollars over a long period of time, it was clear we needed some answers. Today, we need answers: True cost? What can be salvaged from the old system? And when it is all said and done, will the systems be seamless? And will this investment take away from dollars needed to replace existing old IT systems in the many veterans hospitals we have around the country? We have dozens of them, old systems. And will it take away from meeting the challenges of the new Choice Program and, may I say, a constant irritant to me, the embarrassing backlog of cases? I mean, some of these men and women are in their eighties and they are waiting for some sort of adjudication of their cases. Totally inexcusable. I know the focus here is on electronic medical records. Two priorities for the entire Appropriations Committee, not just this subcommittee, which Chairman Dent runs well, is that we ensure that we are providing the best medical care for our veterans and that we are setting out a fiscally responsible course to meet their needs. All of us want to hear in detail and for the record how that is going to be done. Thank you, Mr. Chairman. Mr. Dent. Thank you, Chairman Frelinghuysen. At this point, I would like to ask the Secretary to introduce his panel and then proceed with your testimony. Thank you, Mr. Chairman. Thank you, Mr. Secretary. You are recognized. Secretary Shulkin Opening Statement Secretary Shulkin. Well, Chairman Frelinghuysen, Chairman Dent, Ranking Member Wasserman Schultz, and all the members of the committee, thank you for being here. And our intent is to be candid and answer all your questions this morning. I have with me, to the right, Scott Blackburn, who is the executive in charge of information and technology, and, to my left, John Windom, the executive for the electronic health record modernization. And, as you know, VA and DOD have been working on trying to get interoperable electronic medical records for quite some time. I was only able to trace the history for 17 years, but I am going to defer to the ranking member, who I think did a much better historical record of this than I did, so we are going to use her timeline. It has been quite a while. And, Chairman Dent, I think skepticism is appropriate. I don't know any other way to interpret history than to say that this has taken way too long, and there have been many false starts along the way. So I am right with you. I think that there is enough blame on both sides here, with DOD and VA. So I am not going to spend a lot of time on the history. I will tell you, right now--because that is really my best chance to sort of assess the situation--I have never seen better cooperation between DOD and VA. And I have to give a lot of credit to Secretary Mattis and Deputy Secretary Shanahan for leading this and saying we are going to get this done. So I think everyone is in agreement, this has taken too long. Even besides the fact that we don't have interoperable systems, VistA by itself is not a system. It is 130 different instances of an electronic medical record. That is insane, but that is the system that we have today. So we could continue down the same path that we are right now, without DOD and VA being interoperable, with VA having 130 different electronic medical records. But we could, alternatively, go for a commercial, off-the-shelf system that is going to provide a single system with DOD and give veterans seamless care and this integration with community providers that the ranking member mentioned. From my perspective, maintaining the status quo is just not acceptable. The health and safety of our veterans is our Nation's highest priorities--among our highest priorities. On that, I know that everyone here agrees in a bipartisan way. Critical to meeting that priority is a complete and accurate veterans health record in a single common EHR system. Adopting the same EHR as DOD will vastly improve VA services and significantly enhance the coordination of care for veterans, not only at VA facilities but also at the Department of Defense and with community providers. Continuing to pursue VistA EHR interoperability would fall short in providing veterans the quality healthcare that we can give while throwing good money after bad. So, on June 5th of this year, after carefully looking at the data, I announced my decision to adopt the same electronic health record as the Department of Defense. And I am convinced adopting the same EHR system that DOD uses is the best solution. It will allow VA to keep pace with health information technology and cybersecurity improvements that VistA simply cannot achieve. Veterans' health information will reside in a single common system, providing seamless care between the Department of Defense and VA. We will be able to share veterans' health information with our community partners. And for those transitioning servicemembers, veterans' medical records will be at VA on day one. In working hand-in-hand with DOD on the same system, we are going to gain the advantage of their lessons learned, while making sure we fully achieve interoperability objectives. We are also committed to working with other EHR vendors besides Cerner and leading technology companies to create interoperability with our academic and community partners within the communities where our veterans live. This is the best decision for veterans in the short term and long term, and it is the best decision for taxpayers. Upgrading and maintaining VistA to industry standards will cost approximately $19 billion over 10 years--that is an independent study that was done by Grant Thornton--and we will still not achieve the necessary VA-DOD interoperability that the new EHR system that we are proposing will provide. The new EHR system over 10 years will be billions less than the $19 billion required for our current system. We are going to discuss the specifics in closed session, as you suggested, Mr. Chairman. And by moving from over 130 instances of VistA to a single instance of the new EHR, we will save billions more in efficiencies and quality improvements. I look forward to discussing those details, as well, in the closed session. But what I can say here is that we are achieving substantial discounts, choosing the same system as DOD and aligning our system deployment with theirs. Mr. Chairman, we want to work with Congress to find a common solution to funding this EHR modernization plan in fiscal year 2018. We prefer to fund the plan as part of the enacted 2018 appropriations bill, as I think you do too; however, we have to do this quickly. We have achieved substantial discounts by aligning our EHR deployment and implementation with the Department of Defense's. Absent an appropriation bill by the end of the calendar year funding the plan, we ask Congress to consider approving our transfer request so we can promptly award the contract. This contingency enables VA to avoid cost increases and allows us to move forward with IT infrastructure modifications and expanding our program management office to provide the necessary oversight and manage implementation. I do ask you consider establishing a new, separate appropriation account for EHR modernization costs. That way, we can capture everything in one place for the sake of full transparency and accountability, from our initial operating capacity to full deployment and other important decision points along the way. Mr. Chairman, the electronic health record modernization plan is right for veterans' healthcare, and it is right for taxpayers. It will significantly improve VA services and enhance the coordination of care at VA, DOD, and in the community. Thank you for the partnership in helping us improve how we care for our Nation's veterans. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Dent. Thank you, Mr. Secretary. Would you introduce your panel that's with you today, please? Secretary Shulkin. Yes. Mr. Scott Blackburn, the executive in charge of information and technology, and Captain John Windom, who is in charge of our EHR modernization. Mr. Dent. Thank you. At this time, let's go right to questions. DESCRIPTION OF PROPOSED EHR SYSTEM Mr. Secretary, could you please start by laying out for us the type of records system you are contracting for, what capabilities VA needs, the timeframe and geographic rollout you plan nationwide, and the impact it will have both financially and in terms of patient healthcare? Secretary Shulkin. Well, we have been working very hard to answer all those questions. And we do have a very specific timeline/project plan objectives. And in order to do this in the most succinct and accurate way, I am going to ask Captain Windom to respond to that. Mr. Windom. Retired, sir. Secretary Shulkin. Okay. Mr. Windom. I appreciate the opportunity, and thank you, Mr. Chairman. Because we have a closed session forthcoming, I can speak in greater detail in a closed session. But, overall, we intend to award a 10-year contract. Within that 10 years, we anticipate deploying to the full enterprise the full breadth of the 1,600-plus facilities and community providers that support those respective facilities. We believe that within that 10- year timeframe that is very much achievable. And following the signing of the D & F back on June 5 by Secretary Shulkin, we entered into immediate and direct negotiations with Cerner Corporation such that, as part of an alpha contracting process, we are able to communicate across the table to fully assess not only their concerns for deployment but to offer them full understanding of the environment that they are going to be deploying to. And, therefore, we are very comfortable with a plan that deploys across the enterprise in less than 10 years. We intend to align our efforts to those of DOD today. I was fortunate enough to lead the program office for DOD that successfully acquired Cerner through a competitive acquisition. So very comfortable that I have seen both sides of the fence. I am also very comfortable that we are leveraging the lessons learned that DOD has in their associated deployment challenges. But that alignment, that critical alignment early in the process allows us to move out more aggressively in our approach, to be more efficient in our approach, and, again, to maintain the requisite configuration management over both sides, DOD and VA, that will support seamless information exchange well into the future. So hopefully I answered your question, but subject to your additional questions, I will pause. ROLLING OUT SYSTEM GEOGRAPHICALLY Mr. Dent. Yes. Mr. Windom, you said you were going to roll this out across the whole system. Geographically, in what areas are you going to start? Mr. Windom. So, presently, DOD is in the Pacific Northwest. They just went live in Madigan Hospital, and they have gone live at three other facilities. So it is our intent to deploy also to the Pacific Northwest. It is inherent economies of scale gained by labor efficiencies. I can't speak for Cerner Corporation, and I won't delve overly into the specifics of the negotiation, but there is clearly--by us deploying into the same geographical area, we will be able to leverage the resources that are already in that area. If we deployed east, clearly they would have to stand up a full-team that would have to, again, support our deployment on the opposite part of the country that DOD is in fact deploying. So we believe and have seen as part of the negotiation process substantial efficiencies in that area and in that strategy. Mr. Dent. Back to Secretary Shulkin, your reprogramming proposes to move funding in two ways, from medical services and medical support and compliance, to jump-start the program, with appropriated funding first assumed for fiscal year 2019. The first wave of transfers is $324 million from medical services and $50 million from headquarters staff hiring. We understand the hiring freeze has generated the $50 million, but the $324 million from medical services will be a hard sell to outside organizations, some of whom are probably represented here today. I know you say it is for medical equipment purchases that can be recouped at the end of the year, but your fiscal year 2018 budget already starts out with a $245 million cut to medical equipment. So merely getting back to the original cut level isn't particularly reassuring. How are you going to characterize this publicly? Secretary Shulkin. Well, first of all, we would prefer to take the strategy that I believe that you would also support, which is not to do this transfer but to get the 2018 appropriations done before the end of the calendar year. We are in somewhat of a time crunch, in that, in order for us to achieve the efficiencies that Mr. Windom just talked about, we do need to align closely with the DOD implementation. And so we are trying to do the best thing for taxpayers here. What we have proposed is an alternative if we are not able to get the 2018 appropriations bill done, where we would use some money that was from carryover from 2017 as a stopgap to be able to start this project, and then we would refund it, we would replenish that money so we do not believe that this will end up delaying or hurting veterans' healthcare. But it is not our preferred strategy. Mr. Dent. Thank you. I have additional questions, but we have a lot of members here, so I want to go right to their questions. Ranking Member Wasserman Schultz is recognized for 5 minutes. Ms. Wasserman Schultz. Thank you, Mr. Chairman. CATCHING UP TO DOD EHR DEPLOYMENT The frustrating thing here is that the VA--and I say VA, not you--but the VA's foot-dragging and missteps have become our emergency. Because DOD has jumped ahead and gone forward with what we should have been doing in parallel. You know, as an appropriator for a long time, that is not really the fiscally responsible way to deal with things. So I just will express that frustration out loud. To follow up on the chairman's question, I was going to ask this in closed session, but since you were able to answer it in the open, I will ask it. At the locations where the VA missed the opportunity to piggyback on DOD, are you going to deploy at those sites last? Or is a second Cerner team going to have to go to those sites? Secretary Shulkin. Well, we don't think we have missed any yet. They are just now implementing in the Pacific Northwest. I think they had their opening 2 weeks ago or a recognition of that. Today, maybe, is their official. So that is why we are trying to do this quickly. And we recognize you have been extraordinarily responsive in trying to keep up with that timeline. But we haven't missed any sites yet, and so we don't want to be in the position of having to go back and correct for that. TIMEFRAME TO DEPLOY THE CERNER SYSTEM Ms. Wasserman Schultz. On the timeframe to fully deploy the Cerner system, theirs is a 15-month deployment schedule per location. Is that a timeframe that is set in stone, or are you going to be able to shorten it as you learn best practices? Secretary Shulkin. Yes. Working with DOD and the fact that they have been so generous in sharing their lessons and their implementation plans, we can clearly shorten this. The DOD healthcare system is one-third the size of VA. So let's just, from the start, say ours is a much more complex and larger implementation. But we believe that if the contract is signed that we will be implementing our first site within 18 months. And then it will be this 7- to 8-year rollout that will get you to the full 10-year period. But we have to implement much faster and more aggressively than DOD, just because the number of facilities that we have are two-thirds more than what they have. Ms. Wasserman Schultz. When I got on the Appropriations Committee, I inherited, as the then-chair of the Leg Branch Subcommittee, helping to bring in for a landing the really unbelievably blown timeline and cost of the CVC. So, at a certain point, we had to bring in GAO to manage the completion of it so that we could stop the bleeding. IS THE TIMELINE TOO AGGRESSIVE So I have a little experience in oversight of something this significant, which concerns me--just to use an example of the question I am going to ask you, my husband for years--I am almost always late. My husband will be early to his funeral. And in our 27-year marriage, he has told me, ``Debbie, it is just better to tell me the real time you are going to be here than to give me a time that is a lot sooner than you really likely are going to arrive.'' So that begs the question, it took DOD 26 months from generation until contract award, and you have a faster timeline than DOD and a larger system, so is there any concern that your timeline is too aggressive? Secretary Shulkin. Well, first of all, I think your example is a very good example we can all understand. But there is no doubt that we are being aggressive with this. But we are also doing business differently, and we are trying to do business differently. Now, that doesn't assure that we are going to be 100-percent successful at this, but I think the right thing to do in this situation is to act with urgency and to be aggressive and to establish sharp timelines. The major difference that we are going to do in implementing this versus other VA IT projects, which does not have a great history of on-time, on-cost---- Ms. Wasserman Schultz. No. Secretary Shulkin [continuing]. And we understand that--is we, first of all, have given up on the idea that we are going to be doing software development ourselves. That was the initial plan, which is that we are going to buy commercial, off-the-shelf systems and we are going to rely upon industry partners who have good track records. Secondly, we are going to do the governance of this project and the oversight of this project directly out of the Secretary's office. That has not been done before. Part of the root cause of some of our problems at VA has been the silos between IT and the health system. And so this is going to report directly to the Deputy Secretary, who will have oversight. And there will be a new governance committee established that will have VHA and IT working as part of that governance structure. Third is we are using the lessons from DOD. If they weren't talking to us and sharing this, I would be much more concerned. But they are so fully committed to our success that I believe that saves a lot of time and a lot of money for taxpayers. And, fourth, we are taking advantage of the private-sector CIOs. Mr. Blackburn is going to be on a call with five of the leading CIOs in the country getting their advice, asking what mistakes are likely to happen, and essentially using private- sector input. I have been a private-sector CEO. I have done EHR implementations. It doesn't mean I have done anything like this or this complicated. Nobody has. But I think we are committed to working with the private sector and DOD in ways that VA before just hasn't been willing to do. Ms. Wasserman Schultz. Mr. Chairman, Mr. Secretary, I look forward to being surprised. Thank you. I yield back. Mr. Dent. At this time, I would like to recognize the chairman of the full committee, Mr. Frelinghuysen, for 5 minutes. The Chairman. We are admiring of the work you are doing and the fact that you are putting your shoulder to the wheel. Just let's say for the record, the House did all of its 12 appropriations bills. We are waiting on the Senate. And the first bill out of the hopper was this bill. Secretary Shulkin. Yes. The Chairman. And may I say for the record, no disagreement, we forward-funded the VA. No one else gets that, and we do it for a reason. The issue here is that we are about to approve a reprogramming of a certain amount, which commits us to a long- term obligation. And that is why we are here, is just to have some assurances that we know where we are going here. That is really why we are having this hearing here. ELEMENTS TRANSFERABLE FROM VISTA For me, just a couple of comments. Is there anything salvageable from what we have already invested in? Which I have indications there is. And we have other financial systems in a variety of VA facilities that are subpar, ancient, all different. And I assume you feel that those are systems that need to be replaced, rejuvenated, and whatever. But, you know, the issue here is we sign on the dotted line with this reprogramming. We are committing this Congress and future Congresses to the implementation of this plan. We want to get it headed in the right direction. Secretary Shulkin. Right. I think that, Mr. Chairman, you were absolutely correct in all of your comments here and your perspective on this. VA has always shared the goal of getting interoperability and has shared the goal of getting interoperability and has shared the goal of getting to one instance instead of 130 of our EMR. It is just that we thought we would build this ourselves. And so we have been trying to be a software development company. And we have literally spent billions of taxpayer dollars and lots of years and haven't gotten there. And what we are saying now is that we are going to go to commercial, off-the-shelf technology. But what we have worked on isn't completely wasted. We have a lot that we have achieved that we are going to use in this implementation. Part of why it gives us a little bit more confidence that we will get there and that we can make up on some of these timelines. Because a lot of the work that we have done in process mapping of getting towards a single instance, which we had called VistA Evolution, is not going to be wasted, and we are going to need that. We are also going to be running our VistA system in parallel while we bring up Cerner, because we cannot afford to let any veterans' healthcare fall down. Mr. Dent. I would now like to recognize the gentleman from Georgia, Mr. Bishop, for 5 minutes. Mr. Bishop. Thank you very much. Let me welcome you, Mr. Secretary, Mr. Blackburn, Mr. Windom. CONNECTION TO COMMUNITY PROVIDERS Let me get right to the point. As you know, the issue of creating a fully interoperable health record for our veterans has been a concern of Congress for a long, long time. It is my understanding that the proposal from Cerner is focused on DOD- VA interoperability but that the strategy to connect community physicians who provide care for veterans is not yet defined. Given the growth of the Choice and the Community Care program, this challenge is something that really needs to be addressed immediately, particularly in rural areas. I, for one, would be much greater reassured if we knew that you had plans to address the interoperability with the community providers, as well as to ensure that all veterans can benefit from the interoperability. As such, what provisions are in the Cerner contract that will develop interoperability solutions to improve connectivity between the providers and the community? And by that, I don't mean a Joint Legacy Viewer. Secretary Shulkin. Yes. Your question is absolutely the critical question that we have set forth to achieve. So, first of all, we will achieve DOD interoperability. That is one piece of it. We will achieve better interoperability among the 130 different instances because I practice in the VA; I have to leave my system that I use to go into one across the country. So it is not, even in the VA system, true, easy interoperability. VA already has several hundred health information exchanges with community providers. So we are doing interoperability with our community providers in the network. As you know, one-third of our care is now out in the community. Mr. Bishop. Right. Secretary Shulkin. So we are going to already have that. Cerner, itself, has an interoperability tool that connects with thousands of additional providers with standards that are common. So we will have that. But we absolutely need to engage other IT vendors, other EHR vendors, besides Cerner, in order to achieve the objective that you have laid out, and that is a program that we have just put out an RFI for to industry to ask how we can best do this and work with them to achieve the goal you have stated. We call it the digital health platform. It is a central component of achieving the goal that we need for our veterans, which is interoperability with community partners. And we are going to be working with industry to get that done. CYBERSECURITY CHALLENGES Mr. Bishop. One of the real challenges, particularly in this day and time, is going to be the cybersecurity aspects of the Community/Choice program connectivity, as well as the DOD- VA interoperability. Secretary Shulkin. Yes. Mr. Bishop. So that is going to be a real challenge, and we will be very interested to know how you are going to make that happen. EHR PROGRAM MANAGEMENT OFFICE You mentioned that the electronic health record program will be run out of your office. Will you set up a new sub- office? Will we see this in the fiscal year 2019 request? Or are you going to try to do it---- Secretary Shulkin. Yes. This is all part of the overall program cost. And, Scott, you may want to talk about the PMO and how we are going to do this. Mr. Blackburn. Absolutely. So there will be a separate office. That is currently being led by Mr. Windom. So it will be a program management office that will be made up of both clinicians from VHA as well as technologists from OI&T. We feel it is incredibly important to put them together in one team, one integrated team that is working together, with a joint governance structure over that that includes the CIO, that includes the Under Secretary of Health and the Deputy Secretary. PROJECT GOVERNANCE Mr. Bishop. Quickly, let me ask you, where you have these CIOs working together, for key decision points that might impact both departments, who will serve as the responsible personnel that is accountable? DOD? VA? Who is going to be ultimately responsible for making those decisions? Mr. Blackburn. I will defer to Mr. Windom on the joint governance structure. Mr. Windom. We believe that governance is a critical part. We want to stay on converging paths to seamless care, not diverging paths. So governance has been something we have been working on hand-in-hand with our DOD counterparts, and we have created an interagency governance board. That interagency governance board is chaired at the highest levels. We would like to think that much of the decisionmaking and results will---- Mr. Bishop. Who will chair that? Mr. Windom. Well, it will be chaired at the DepSec level for us, and it is at the AT&L level for DOD. And so that board, there will be technical and functional governance elements under those levels that, hopefully, most problems will be resolved in. There will be participation by Cerner Corporation, as a nonvoting member, because they are the developer of the software. DOD, as you know, has Leidos as a prime contractor, so they will be a participant. So it is important that we all stay in tune to the changes that each side is making or desires to make, DOD-VA, with a clear understanding that we will manage, you know, in a configuration management schema, those changes. Because, typically, most changes are good for both sides of the enterprise, not for a single side. So, sir, that construct under that interagency platform is going to be how we are going to ensure that we stay aligned in our methodologies and moving forward. Mr. Dent. I would like to recognize Mr. Jenkins for 5 minutes. Mr. Jenkins. Thank you, Mr. Chairman. And, folks, thanks for being with us. Two areas of inquiry. OPIOID CRISIS One, we are amidst, nationally and certainly at ground zero, an opioid crisis. And I appreciate the work that the VA is doing trying to address this within our veteran population. We obviously have a patchwork of prescription drug monitoring programs at the State level around the country. We have had issues about trying to make sure the VA is sharing information for these PDMPs and also that the healthcare providers at the VA have full access to the appropriate medical history for best prescribing practices. Can you reassure me about the interoperability of this system being able to integrate the information from State PDMPs and what the status is on the VA sharing information the other direction, with State PDMPs, about prescribing issues? Secretary Shulkin. Yes. Well, first of all, as you know, the VA is fully committed to complying with the State regulations and the State laws, and we do. That is our current policy, that we use the PDMPs. And it is part of our multifaceted approach to reducing opioid use and one of the reasons why we have a 36-percent reduction in opioid use among veterans since 2010. We are concerned about data that shows that when veterans leave the VA out into the community that there are actually higher rates of opioid abuse happening out in the community. So this is one of the reasons why this interoperability with community providers is absolutely key to us. But Cerner Corporation, in this contract, is committed to complying with the State regulations. And that is something that we just won't see any misstep from in the transition. Mr. Jenkins. Thank you. The second, I am a big believer that you have to be able to walk before you run. And I know what you are describing here is running with an integrated system, working with community partners, but I still remain very concerned about the existing system and the breakdowns. PAYMENT SYSTEMS PROBLEMS Let me just give you an example. I was in my hometown, at Cabell Huntington Hospital, one of the largest hospitals in the State. Many veterans get care there, coupled also with our wonderful VA medical center in Huntington. But in my meeting with Cabell Huntington Hospital, they were sending claims for the direct VA care to Mountain Home VA Health Center in Tennessee. And they were having a 40-percent rejection rate just because the folks at Mountain Home VA Health Center, as I understand it, generally, maybe not in every case, was sending them to the wrong VA center. So Cabell Huntington Hospital has to start stamping each claim that they submit to say where Mountain Home needs to send it. And they have improved. They are at the 25- or 30-percent level. And then, when Cabell Huntington tries to call, very often, nobody answers; there is no ability to leave a message. So, fundamentally, I still think we have serious, serious payment system problems. We have an administrative challenge, to be polite about it. Because this is to the tune, for a community of 50,000 people, a hospital, they have accounts receivable to the tune of $7-million-plus waiting for payment. That impacts healthcare delivery for our veterans. So what assurances can you provide that, while we are thinking visionarily about this new integrated EMR-EHR system, we are still making a commitment to getting the payments done in a timely, accurate fashion and addressing the flaws in the existing system? Secretary Shulkin. Yes. You know, I come from the world of running hospitals, and I fundamentally believe that if you deliver a service, you need to be paid for that. And the VA, in too many cases, as you are saying, is falling short on that. There is, again, enough blame for this to go around. We have had problems with our third-party administrators in some cases, our contractors and payments. But, clearly, a lot of the responsibility is also on the VA. We are working very hard to improve those areas of communication, that what you are describing is unacceptable. We are trying to build timely payment standards into new Choice legislation that we hope that you will soon have an opportunity to consider. And we are trying to simplify the payment systems, which right now require 100-percent adjudication, which is not an industry standard. You wouldn't find that in the private sector. So I think that we are trying to move much more to where the private sector has gotten to on timely payments, and we need to do that. And I would be glad to look into your particular situation there so that we can get that corrected, as well. Mr. Jenkins. Thank you, Mr. Secretary. Mr. Dent. I would like to recognize the gentlelady from California, Ms. Lee. Ms. Lee. Thank you, Mr. Chairman. PROBLEMS FINDING MINORITY & SMALL BUSINESS SUB-CONTRACTORS Welcome, all of you. Thank you for being here. Of course, this is a sole-source contract, 10 years. You have been very aggressive, in response to Congresswoman Wasserman Schultz, in terms of getting this done. Now, Small Business Administration negotiates prime and subcontracting goals with each Federal agency. So, given this contract, given that it has been pending, as we know--I mean, this work has been pending for many, many years, let me ask you a couple of questions just about this in terms of the VA. Now, I know the VA got a passing grade of B on the prime subcontracting goals of 30 percent of small-business-eligible contracts. That is the VA. Now, your newly negotiated goal for fiscal 2017, actually, that has been downgraded--I don't know why--to only 28 percent. Now, the VA notes in your report that providing timely patient care requires that we continue to rely on national and regional contracts for procuring healthcare outside the VA system but that the VA will seek subcontracting opportunities for small business. Now, the VA did exceed its general small-business subcontracting goal of 70 percent, but you failed in all these other categories that are in statute. Let me give them to you. Okay. You are required 5 percent of all prime subcontracting goals. You reached 2.2 percent for women. For small, disadvantaged businesses, 5 percent of all prime and subcontracting awards. You got to 1.4 percent. And let me remind you, this is where the minority-owned businesses are, okay? African American, Latino, Asian, Pacific American, 1.4 percent total. That is outrageous. Service-disabled veteran-owned businesses, 3 percent of all prime and subcontract. You got to 0.3 percent. And for HUBZones, you have a requirement of 3 percent. You got to 0.5. Now, given the enormous amount of money Cerner is going to make off of taxpayers in this VA contract, let me ask you what you have required of them to comply with Federal law to meet all of these goals. Because what you are doing, you are going backwards now, in terms of most of these businesses that you should be requiring the subcontracting goals--contractors to reach. So let me hear your thinking on that and what you are doing about this Cerner Corporation subcontracting goals. Secretary Shulkin. Yes. So you are asking about what requirements will we put on Cerner to subcontract with small business and some of the particular---- Ms. Lee. Yeah. In compliance with the law. Mr. Windom. Ma'am, within the terms and conditions of the contract, the VA small-business goals are fully captured. I can't site those for you directly. I can get back to you with those numbers, but I could tell you exactly what percentages are going to whom. What---- Ms. Lee. For Cerner. You are talking about now, for this contract. Mr. Windom. For this contract. Ms. Lee. Yeah. Okay. For small business. Okay. Mr. Windom. Cerner is fully on board with those--they have to provide as part of the process a small-business plan on how they are going to achieve those goals. Ms. Lee. Right. Mr. Windom. It is really the enforcement of those terms and conditions that are important. Ms. Lee. Yes. Mr. Windom. My program management office will be enforcing those goals rigidly. I can't speak for the other elements of the VA. That is all new information to me. But I can assure you that, in overseeing the Cerner contract, those small-business objectives will be of the foremost importance to us to achieve. Ms. Lee. But, Mr. Windom---- Mr. Windom. Yes, ma'am. Ms. Lee [continuing]. Small-business goals are one. You are not aware of minority-owned-business goals? Mr. Windom. I am absolutely aware of minority-owned- business goals. Ms. Lee. Then what are they and what have you required of Cerner for women-owned businesses and minority-owned businesses in this contract? Mr. Windom. Ma'am, the way the contract is broken down, there are--again, I can't site the specific percentages, but each one of those categories have a percentage of the total contract value that they are entitled to be awarded as part of contracted work subcontracted to Cerner. Ms. Lee. Does anybody have those requirements here? Mr. Windom. I can get back to you. Ma'am, I don't want to cite inaccurate--but I can give you those percentages, broken out by categories, as you requested. That is no problem. As a matter of fact, I may even be able to get it in time during the closed session. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Lee. Thank you. And, Mr. Secretary, let me just ask you, just overall, generally, what is going on over there? I mean, you know, we are trying to ensure parity and equal opportunity and nondiscrimination, and here you have 1.4 percent this year for minority-owned companies? Secretary Shulkin. Well, first of all, we are committed to this. Those are numbers that are different numbers than I have, so I would like the opportunity to be able to sit down with you and---- Ms. Lee. This was from the Department of Veterans Affairs, your procurement division. Secretary Shulkin. In what time period? Ms. Lee. This is February--we requested it for February 2017. Subcontracting data as of March 14, 2017, for fiscal 2016. Secretary Shulkin. Yes. As I said, those are different numbers than I have seen. As you know, the Kingdomware decision has completely changed the approach that the Department of Veterans Affairs is doing for contracting with small businesses. And we have had a strategic pause and have relaunched to be able to meet these objectives. This is a goal that we share, we take seriously. As you said, our overall goals are always above our targets here. And if we are falling short in some areas, I want to make sure that you and I have the same information, but I can tell you we are going to be committed to improvements. If the data that I have is different than what you have, then I want you to have that information as well too. Ms. Lee. Okay. Thank you. And I look forward to getting the specifics on Cerner. Thank you. Mr. Windom. Absolutely, ma'am. Mr. Dent. Okay. Mr. Taylor is recognized for 5 minutes. Mr. Taylor. Thank you, Mr. Chairman. And, Mr. Secretary, thanks for being here. Let me first say, number one, let me echo some of my colleagues' comments in talking about how long it has taken. And I just appreciate that you are a hard charger, that you are aggressively moving to get the damn thing done. Because it is inexcusable, in my opinion, how it has been before you and I both got here. But I appreciate that you are doing that, but we do have some questions, of course, on some of the cost savings and timeline issues. But I do want to address one thing that I just heard that I think is important. Sure, you know, it is extremely important for the VA to meet statute, to meet goals, in terms of service- disabled veterans and minority- and women-owned businesses and stuff like that. I am curious what Cerner's own goals are. But, at the same time, I don't want forced equality on unequal things, in terms of understanding that those statutes and goals are overall in the VA Department, so if there is a specific contract that there aren't qualified folks that can do the work, if we force that to happen, then you are hurting veterans. So I definitely want to say that for the record. That is not something that I want to see happen. But I do, of course, you know, like my colleagues, want you guys to meet your goals and statute. That being said, a couple quick things. Let's see. IMPACT OF FAILURE TO RECEIVE REPROGRAMING Let's say you aren't able to get this reprogram, these moneys, how will that affect you? What would the timeline be? What would the cost be? Would it be a complete stop for your efforts? Secretary Shulkin. Yes, we think it will add--and, Mr. Windom, please correct me if I am not being as accurate, because we want to be as fully transparent as we can in open session. We think it will add at least 5 percent to the total project cost if we miss that alignment with the Department of Defense. Mr. Taylor. So, on the alignment--so it would seem that they are actually getting the best efficiency, the DOD, as opposed to your guys, because you are much bigger and you are more complex, which is fine. That is great. We want to make sure you guys are there. In terms of if you didn't have the DOD in this, what would that also be in terms of cost and timeline? Secretary Shulkin. Well, it would be a longer timeline and more expensive. Mr. Taylor. No question. No question. Secretary Shulkin. I mean, in closed session, Congressman, we would be glad to share with you what we believe we have been able to negotiate in terms of efficiencies. I do believe we have achieved substantial savings and efficiencies and timelines because of DOD's experience here. And we have also learned from them what they would do if they could do it over again so that we are not making the same mistakes, which are costly, to make mistakes. Mr. Taylor. When you are speaking about your community partners--which, in my area, I know that you guys do have that, you do have some exchange in information there. Secretary Shulkin. Uh-huh. ADDITIONAL FUNDING TO COMMUNITY INTEROPERABILITY Mr. Taylor. Is that going to be another appropriation to make sure--obviously, Cerner has 27,000 facilities that use their information. Is that an easy fix, to be able to talk to community partners and everything? Or is that something that you will come back to us and ask for more money for? Secretary Shulkin. Yes, we can absolutely take advantage of the health information exchanges that already exist within VA. We have 700 of them. And it is built into the contract to take advantage of Cerner's interoperability with community partners. This Digital Veterans Platform, which is to seek outside industry to help us create the true interoperability that, frankly, everybody in healthcare is looking for--this isn't just a VA issue. We think VA and DOD can lead this for the country. That digital veteran platform, right now we are just going out and asking an RFI, request for information, that will turn into an RFP for outside industry help. And so we don't anticipate--we are not asking for an appropriation for that for several reasons: We don't anticipate that happening in these next couple fiscal years, and the work that does happen will be funded internally at VA. But, also, healthcare technology is changing so rapidly and there are so many new advances that we don't exactly know what that is going to look like. Mr. Taylor. Will this system allow for you to be--you know, that we are not building on legacy systems and MS-DOS and all that stuff but---- Secretary Shulkin. It automatically includes the new advances, the new updates---- Mr. Taylor. With software that just changes---- Secretary Shulkin. Absolutely. That is part of this contract negotiation. 100 PERCENT INTEROPERABILITY GUARANTEE Mr. Taylor. Can you guarantee 100 percent after this change, if we, you know, reprogram these funds, that you will speak to DOD--or that the interoperability will be 100 percent, DOD and VA? Secretary Shulkin. I don't think I have ever guaranteed anything 100 percent. But Mr. Windom is willing to. Mr. Windom. I mean---- Secretary Shulkin. Yes. Mr. Taylor. He has been shaking his head over there. Mr. Windom. I am willing to say that, because we will be on the same Cerner Millennium platform. We will be hosting our data in the same hosting facility. We will communicate seamlessly across the respective DOD and VA environments because of those reasons. So I expect it to be 100 percent. And I am a veteran, so I am banking on it. Mr. Taylor. All right. Thank you, Mr. Secretary. Thank you, Mr. Chairman. Mr. Dent. At this time, I would like to recognize the gentleman from Ohio, Mr. Ryan, for 5 minutes. Mr. Ryan. Thank you, Mr. Chairman. I appreciate it. Thank you, Mr. Secretary. Thank you for your service. Gentlemen, we appreciate you and all the work that you do. ALTERNATIVE MEDICINE FOR OPIOID ADDICTION I come from Ohio, and we have, as you know, an opiate epidemic that is of immense proportions for us. In 2016, we lost 4,000 of our fellow citizens in the State of Ohio to overdose, primarily from opiates. As you know, in 2016, we lost over 60,000 people across the country to overdose deaths, more than we lost in the Vietnam War. So this is something that we continue to struggle to deal with. And I know, Mr. Secretary, that we have talked about this before. Last month, I noticed that another substantiated report was released by the VA Office of Inspector General following a confidential complaint that the VA clinic in Baltimore, Maryland, was failing to provide appropriate quality control through the opioid treatment program. A 2014 investigation revealed a disturbing lack of attention on opioid management. Only 6.4 percent of new patients were prescribed opioids in accordance with the clinical practice guidelines. For our highest-risk veterans, those with active substance use diseases prescribed opioids for more than 90 days, less than 19 percent received appropriate testing and therapy, with some clinics providing no testing and therapy at all. The death rate from opiate overdose among the VA is almost double the national average. And issues span many, many facilities. Further complicating the opioid overprescription problem is a lack of appropriate software in our clinics. As we discuss electronic records and electronic health record management, now is the right time to also address including appropriate software to provide opioid oversight. What is the VA doing nationwide and in communities like mine in Ohio to implement technology solutions to assist clinicians in delivering improved and preventative patient care so that opioid prescriptions and other medication are properly prescribed? Secretary Shulkin. Well, we share, Congressman, your absolute concern and believe that, although we have begun to really focus on opioid safety in 2010, that we need to do much more on this. And so I have personally participated in the President's commission for opioid reduction and addiction, and we are going to redouble all of our efforts. So, when we find situations like the IG did in Baltimore in 2014, that was really a call to doing more in terms of oversight and action. In terms of technology, we have something called the Opioid Safety Initiative that has a dashboard. We can track opioid prescribing not only by facility, by clinic, by provider. And that triggers for us the ability to go in and intervene with the provider, using academic detailing, which is education by our pharmacists and by other subject-matter experts; by developing alternatives to prescribing medication. We adhere to the stepped-care management approach, the DOD-VA guidelines that do not go first to opioids but look for alternatives. We are investing heavily in complementary or integrative medicine approaches as alternatives in pain management. But, as you know, 50 percent of the people we care for in the VA system complain of chronic pain. So this is a very tough population to get their pain level correctly, and simply not prescribing is not always the best answer either. So we are working on this. We are using technology. It is going to be built in to the work that we have done, built in to a new electronic health record. And we are going to stick at this and actually, I hope, be one of the leaders in this in the country to try to solve this problem. Mr. Ryan. So are you seeing steps in the right direction? I mean, you are looking at, you know, only 19 percent received the appropriate testing and therapy. These are high-risk populations, as you know. And they are in a lot of pain. So---- Secretary Shulkin. Right. Those are referring to urine tests for concomitant benzodiazepine use--again, something that we think is a risk, when you put a patient on both an opioid and a benzodiazepine. And being able to track those urine tests to make sure that there are not other drugs being used, that is part of the State prescription data monitoring program, as well. So this is really a very multifaceted program. Nineteen percent, of course, is not anywhere near what is acceptable. If you went back to Baltimore today--that was 3 years ago--you would find much higher rates. And we do have the ability to track this now. That is how the IG was able to find those rates. I have recently been to facilities in Cleveland. We actually brought the entire commission, Governor Christie and Congressman Kennedy and others, there to Cleveland because they are one of the leaders in the country in the lowest rates of opioid prescribing. So we are taking those best practices from Ohio and spreading them throughout the country. Mr. Ryan. You talked about the stepped-care management approach. Can you just walk us through for 30 seconds--if you can indulge me, Mr. Chairman--of what those steps are? Because I think that is an important point that we kind of ignore. The default position, give the scripts. There are these other approaches. Can you talk to us a little bit about what those are? Secretary Shulkin. Sure. First of all, all of our stepped-care protocols and our VA- DOD guidelines for pain management are all publicly available. So we share these freely with anybody who wants to, because we think they are very good work. But what it basically says, as a prescribing doctor--and, as you know, I am a practicing physician--you do not start with reaching for your prescription pad or, now, your computer mouse and prescribing opioids, that you take people through what would be a reasonable approach for pain management and starting with the least addictive options and, often, nonpharmacologic options, if that is appropriate. One of the recommendations that has come out nationally-- and you have seen CVS actually take a lead in this--is not prescribing a month's worth of drug but really seven days' worth of drug. Part of the problem of addiction is not even to the person you are prescribing, but it is that they put the remaining drugs in their medicine cabinets and their kids get them or somebody else in the family gets them. So there are so many things that we can do with this stepped-care approach of how you adequately get to a point where you would prescribe opioids. Mr. Ryan. Using acupuncture? What are the---- Secretary Shulkin. Absolutely. Mr. Ryan. Are we going to have another round, Mr. Chairman? Mr. Dent. Yes. We are going to go into closed session. Mr. Ryan. Okay. I will get you next time. Thanks. Mr. Dent. Mr. Womack is recognized for 5 minutes. Mr. Womack. Thank you. LENGTH OF TIME TO DEVELOP EHR Mr. Secretary, gentlemen, thank you for being here. I am from Arkansas, and I know sometimes we are stereotypically slow. We have been doing this--in your testimony, you talked about how we have been in this discussion now for 17 years, how we have been trying to address this issue--not you guys, because you haven't been doing it that long. And I commend you for the decision to go to the platform. It just would seem to me that that was a decision that should have been made a long time ago. And I make this observation not because of the money that we have spent and the difficulty getting this interoperability, as we call it, but because it just makes absolute sense to me that if you are going to want to talk to DOD, if VA and DOD are going to talk together, they should be on the same platform. Am I missing something as to why we have been in this rut now for 17 years? Secretary Shulkin. I think it is important to understand why this has happened, because what it says is it is at risk of happening again. In 2011, on March 5, 2011, Secretary Shinseki and Secretary Gates, I believe it was, committed, probably in a hearing room like this, that they were going to do it. And I believe that they meant that. I believe that they meant that. And then what happened is Secretaries change and Congress changes, and all of a sudden people say, no, we are going to go a different direction. So I think what is important is, if we get your support in moving forward, that we do not allow that to happen, that we stay--because this is the right decision. This is the right thing for veterans. And so we have to stick at this. And it is going to be hard, and there are going to be stumbles. That is why I never say 100 percent. But this is something that we have to get done for the country. And, frankly, the fact that we are following DOD on this gives me greater assurance that we can get this done. TRANSITIONING FROM THE VISTA SYSTEM Mr. Womack. The only experience I have in anything along this line, on a much, obviously, smaller scale, was I was a mayor once upon a time, and our court system had a bad computer system, and they went to a new system, which was fine, but they made one real major error, and that is they scrapped the old when they transitioned. Secretary Shulkin. Right. Mr. Womack. It wasn't much of a transition, but they just scrapped the old. So, in your testimony, you talked about keeping the VistA system alive. What does that mean? And how long can we expect that we have two systems kind of running simultaneously? Secretary Shulkin. Right. So we have 130 VistA systems. Part of what we are planning on doing is we will shut them down one at a time. When we have a successful Cerner implementation and we are confident, we can shut that one down, start to save some money. But by the time we get to the very last medical center at the end of this full 8-year implementation after we start, that will be when we can finally turn off the system. And, by the way, even then, I think there are 37 subsystems that we haven't figured out yet how to transition off of VistA. Now, we are working on that. But we are planning on running a dual system for the foreseeable future because we don't want to have what happened to your court system. I mean, we can't afford to put veterans' health at risk. Mr. Womack. Absolutely. BEST PRIVATE SECTOR MANAGEMENT PRACTICES And then, finally, Mr. Secretary, you have been to my district, and you know how interested I am in seeing that our Federal bureaucracy learn best management practices from the private sector. Secretary Shulkin. Yes. Mr. Womack. You have personally been to my district to witness that, talk with people. In the testimony earlier--and I think it was Mr. Blackburn that talked about, I kind of look at it as third-party validation. You have some kind of a CIO board, people from outside the universe, that are going to be looking at the process that we are implementing, this Cerner platform. Are you at liberty to say who these people are? Do they have a connection to Cerner? Is there any potential, you know, for a conflict of interest in that regard? Mr. Blackburn. From what I have seen, I think the whole American medical community that I have spoken to wants to see us succeed. So, as an example, this afternoon, I will spend 2 hours on the phone with the CIO of the Mayo Clinic, the CIO of Partners HealthCare, the CIO of Johns Hopkins and Kaiser Permanente. And they will be providing feedback, you know, on--they are reviewing the contract, they are taking a look and saying, hey, you know, here are some of the things that we would do differently, providing us feedback and helping coach us. As I have reached out to various academic, medical, and healthcare providers, everybody is rooting for us. This is going to be a game-changer for American healthcare. They are providing input. We are even talking about borrowing talents that have gone and done these implementations. But I would say the support that we have gotten from the healthcare community is fantastic. Mr. Womack. Very good. I yield back. Mr. Dent. Thank you, Mr. Womack. At this time, I would like to recognize the gentleman from California for 5 minutes, Mr. Valadao. Mr. Valadao. Thank you, Mr. Chairman. Thank you, gentlemen, for appearing today. PORTABLE ACCESSIBILITY TO THE EHR I personally would like to applaud your decision to adopt the same electronic healthcare system as the DOD. Obviously, for nearly two decades, the VA has been seeking to achieve this interoperability between VA's VistA and the DOD system. It makes much more sense to me if both DOD and VA utilize the same system. There has been some debate recently about a veteran's lack of ability to access their personal healthcare information. Do you foresee in the transition the establishment of a secure, patient-centered, portable medical records system, that a veteran can access their own comprehensive medical records? This is something that has been available to the private sector for quite some time, so it is only natural we afford the same ability to our veterans as well. Secretary Shulkin. Yes. Well, I may ask one of my colleagues just to chime in with the details. But our system now, My HealtheVet, is used by millions of veterans. It is a portable system where they are able to access and message with their providers. Used probably more extensively than any other system in the country. So we believe in that. We think that is important. The transition of that over to Cerner, maybe I would ask Mr. Windom to talk about that. Mr. Windom. And I will defer to Mr. Blackburn, but I can say simply, yes, mobility, the ability to access your record via your phone, via web-based access, definitely at the forefront of the terms and conditions of our contract and that we are pursuing all of the state-of-the-art technology that the commercial environment can produce. So, Mr. Blackburn, I will pass to you. Mr. Blackburn. I agree. And, you know, as an example, I think I am personally a good example. I am a veteran, an Army veteran. The DOD has a part of my healthcare record. I got out of service, moved back to my hometown of Boston, where Partners HealthCare had part of my healthcare record--I then moved to Cleveland. Cleveland Clinic has part of my healthcare. When I came to the VA 3 years ago, I enrolled in VA healthcare and get my care right now at the Washington VAMC Orange Clinic. I also get care in the community. Every single one--and I think I just named about five different entities that have different pieces of my medical record that, right now, are not shared well. I had to print out my Cleveland Clinic records and give them to my VA doctor so that he had them. My VA doctor does use the Joint Legacy Viewer, but I got out in 2003, so not much is in there. My records were destroyed in a flood. So, with that, the ability for a veteran or a citizen to be able to get those pieces and put them together is something that is coming. And we are very excited that this will begin to facilitate that process by linking DOD and VA, with the Digital Veterans Platform beginning to link in all these other systems as well. It will take a little bit of time to get to where we are going to be in 10 years, where you are going to have this all together on your iPhone, but we are taking the first steps to get there. Mr. Valadao. All right. PROTECTION OF VETERANS' PERSONAL IDENTITY INFORMATION And then I am going to go in the opposite direction, because, obviously, access means there is an issue with security. So, Mr. Secretary, one of the issues I have focused on in my career and my actual first piece of legislation I ever signed into law had to do with securing someone's ID and their personal information. Government agencies have to take steps to protect people's personal information. Can you speak to the cybersecurity enhancements the VA is undertaking in this transition? This system will obviously contain the very sensitive personal information of millions of veterans. What is the Department doing to ensure the safety of that information? Secretary Shulkin. Yes. Mr. Windom, do you want to talk about the cybersecurity requirements in the contract? Mr. Windom. I will touch on--and then I will defer to Mr. Blackburn again. I come from the DOD side of the house. And, you know, the OI&T efforts right now are leveraging fully the security posture of DOD. And I can assure you the level 2, 3, 4, 5 certifications that exist within the framework of DOD's security posture are being adopted fully. We just had a session with DOD to highlight the importance of the reciprocity agreements that would be necessary between VA and DOD in order to leverage their posture fully. Those are being consummated as we speak. So there is not going to be this separate VA security posture, separate DOD. There is going to be a joint security posture that is going to support the transition of a soldier, sailor, airman, marine from the Active Duty environment to the veteran environment. So that is of the utmost importance to us. Mr. Blackburn. Mr. Blackburn. Yes. I share your concerns on cybersecurity. The VA does not have a great track record. I think we have been on the GAO high-risk report as a material weakness for 16 consecutive years, which is a streak that we are not proud of. But I am proud that we have made great strides over the last 2 or 3 years, and we have gotten good feedback from GAO and OIG on that. I think one of the reasons we have been so vulnerable is having these 130 instances on an antiquated system, so this will help that out. But, in the future, we will be looking, you know, at new emerging technologies, whether it is blockchain or whatever it might be, to get that even more secure. Mr. Valadao. I just feel that the transition period is something we need to be very careful with. So my time is up, and thank you very much. Mr. Dent. At this time, I would like to recognize the gentleman from Nebraska for 5 minutes, Mr. Fortenberry. Mr. Fortenberry. Gentlemen, good morning. Mr. Secretary, nice to see you. ALTERNATIVE WAYS TO ACHIEVE INTEROPERABLE EHR You have an extensive background in healthcare management, running facilities, being an entrepreneur. If someone told you this was going to take you 10 years before an implementation of an interoperable system in one of your hospitals, you would find that absolutely unacceptable. Now, this is a big, massive project that a lot of the difficulties, or, put more succinctly, mess, you have inherited, I get that, but this has been going on for a very long time. So let me just try to simplify this so that I can understand and perhaps we can unpack a lot of this technical language. But I have about four things I want to get to, including some issues of late in Nebraska. You have a system now where you are on one screen, you can show DOD records and your records, right? That is interoperability at the moment. This is going to be combined so that one button pulls up everything from a former servicemember's life, right? Secretary Shulkin. Yes. Mr. Fortenberry. Okay. Why 10 years? I very much appreciate what you are saying, that we are getting out of the software business, because why would we build out the expertise in that area when that is not our expertise? You want to deliver care. I get that. Why 10 years? What do you expect the outcome to be? Are there progress measures along the way so that in another year the system is not going to say, ``We have another significant delay, and it is 2 more years.'' Let me throw everything out on the table---- Secretary Shulkin. Sure. Absolutely. Mr. Fortenberry [continuing]. First, and then I would like you to get to it. We have some information that the VA has always worked with the Indian Health Service to help them with their electronic medical records, but there is some indication that you may desire to move away from that. I would like your comment on that. Because that is some slippage that may cause significant difficulty for another part of government that we would not like to see. Secretary Shulkin. Sure. Mr. Fortenberry. Finally, there is a glitch in the outpatient clinic contract in Lincoln. Give me your assessment of that situation. And explain the criteria for site selection, because I think there is some murkiness there that has caused some possible confusion. Then I have, hopefully, an answer to all of your problems, if we have enough time. Secretary Shulkin. Okay. I would like to hear the answer. Are you sure you don't want to start with the answer? Look, I think the implementation is, frankly, 18 months. From the time we sign the contract till we get our first site up is 18 months, which is consistent with a private-sector practice in terms of from contract to full implementation. We will begin to, after that first implementation, start shutting down what will be 130 successive implementations after that. So, by the time we reach all of our facilities across the country, which are around 1,600, but 130 different systems control those 1,600, it will be around 8 years after the first 18-month implementation. Mr. Fortenberry. So, after 18 months, what percent of systems will have successful interoperability? Secretary Shulkin. Well, we will start with one, and then-- -- Mr. Fortenberry. But what percent of veterans does that represent? Secretary Shulkin. Oh. Well, that would be a very small percent of veterans. But what we have is a detailed project implementation timeline, which we would be glad to show you, how we get from one system in 18 months all the way through. Mr. Fortenberry. That is not really necessary. You understand the nature of the question. Obviously, you are going to try something to make sure it works. But the larger number of veterans that is going to actually be served as a priority would seem to me to be a prudent way forward. Secretary Shulkin. Yes. The longer we take to implement this, the more costly it is and the greater we think that the risk is to veterans. So we are trying to do this as aggressively as we possibly can. Mr. Fortenberry. Okay. INDIAN HEALTH SERVICE EHR My time is running short. I am sorry. Can you, in 30 seconds, address the Indian Health Service question? Secretary Shulkin. Yes. The Indian Health Service does use our VistA system. That will remain available. This is an open- source system. We won't withdraw that from them. They may have to look at alternative systems, just as we are, and we would be glad to work with them on that. We have no desire to hold---- Mr. Fortenberry. We don't want to put them in a situation where they are having to go out on their own and redesign an entire system. Secretary Shulkin. Right. Exactly. Mr. Fortenberry. So anything they can leverage from your experience would be most helpful. Mr. Windom. Can I touch on this? Secretary Shulkin. Yes. Mr. Windom. So we have been in communication with Indian Health Services. And we are firmly committed to supporting them---- Mr. Fortenberry. Great. Thank you. I am sorry to interrupt. Time is ticking. LINCOLN, NEBRASKA CLINIC Secretary Shulkin. Okay. And Lincoln, Nebraska, we will get back to you on that. But that was a small-business issue, in terms of the award, where we have had to go now back out for contract. We are committed to that contract. It is off-schedule because of small-business issue, but we can get back---- Mr. Fortenberry. As we have discussed before, a lot of very creative public-private-public partnerships are on the line here that will provide additional housing and additional development opportunities on a beautiful historic site. Secretary Shulkin. Right. Mr. Fortenberry. We just need for this to move, and move quickly, because there is a lot on hold. Secretary Shulkin. Yes. I will follow up with you on that. [The information follows:] In fiscal year 2014, Congress passed the Veterans Access, Choice, and Accountability Act, which authorized VA to procure 27 Major leases, one of which was an Outpatient Clinic (OPC) in Lincoln, Nebraska. This project will support the VA Nebraska- Western Iowa Health Care System's Omaha VA Medical Center (VAMC). Clinical services currently housed on the existing 60- acre Lincoln campus will be moved to this proposed OPC. On October 18, 2017, the Department of Veterans Affairs (VA) announced it will start a new, competitive lease procurement process for the Lincoln, Nebraska Outpatient Clinic, which will be initiated in fall 2017. This decision follows an August 2017 bid protest that an interested party filed with the U.S. Government Accountability Office, regarding VA's prior competitive procurement action. In that action, the U.S. Small Business Administration determined that the proposed awardee no longer qualified as a small business. Accordingly, VA excluded the protestor from the competition, reviewed the remaining offers, and ultimately determined it was best for VA to cancel that procurement. VA now plans to revise its solicitation to update and adjust its actual leasing requirements. This will bring the project more in line with industry standards, reduce costs proportionately, and provide stronger value to the Government and taxpayers. VA anticipates release of the new Lincoln Request for Lease Proposals in Spring 2018, with a potential award in CY 2018. VA is committed to delivering a long-term clinical solution that meets the needs of Veterans and their families in the Lincoln, Nebraska area. VA will continue to provide care at the current Lincoln VA clinic during this process. Mr. Fortenberry. Thank you so much. Mr. Dent. Thank you, Mr. Fortenberry. Before we move into the closed session, which will happen in moments and members can ask additional questions, I did have two questions that I felt needed to be asked in open session to the Secretary. ADMINISTRATION COMMITMENT One is, what is OMB's commitment to this entire project? We noticed that OMB has not submitted a fiscal year 2018 budget amendment as it did for the Department of Defense. I think that is very important we establish in the open session. Secretary Shulkin. Yes. As you know, we have been working very closely with OMB, just like we have come to you and asked for your assistance, and they are both aware and supportive of this initiative. Mr. Dent. And there is one final question. EHR VULNERABILITY TO POLITICAL CHANGES Mr. Secretary, you and I have joked that neither of us will be in the jobs we currently hold in 10 years. But, in a serious vein, I am concerned that, without consistent leadership, this expensive project could be derailed or reconfigured, given the long implementation time. We have seen the electronic health record whipsaw back and forth every time a new Secretary of VA or DOD comes to the scene. Is it a fair concern for the committee that this health record won't be able to withstand changes in political leadership or budgetary shortfalls? Secretary Shulkin. Well, first of all, if you commit to stay, then I will consider that too. But, no, I think that it would be--once we step in this direction--and I think as all of you have really reflected, this is the right thing to do. This is the right thing; it should have been done years ago. I do not believe this is going to be subject to political back-and-forths. And we are going to set this up in a way that, when we start this, there is the full commitment. And, while anything could happen, I don't believe that this is likely to be derailed. Mr. Dent. Thank you. I was going to ask Ms. Lee to ask a question in open session. And then members will have a next round in closed session, so anything you want to ask, you can ask in there. Ms. Lee. Ms. Lee. Okay. Thank you very much. FATE OF EMPLOYEES TRAINED ON VISTA I just want to find out who is going to maintain this system once the new system is rolled out and fully implemented. And what is going to happen to VA employees maintaining VistA once the Cerner system is rolled out, and will they move over to the new Cerner system? Secretary Shulkin. Yes. The basic upkeep and modernization of the new system is going to be done by the Cerner Corporation. That is the whole point of us getting out of the software development system. Our current employees, we need every one of them. It is very rare to find software engineers who know MUMPS, which is our system, which started back in 1977. But they will--we want them to stay, we need them to stay over this implementation period. And any staff, once we shut down the VistA system, will be utilized as part of our current IT software--part of our infrastructure needs. Ms. Lee. So no job loss. Secretary Shulkin. We do not believe this will be a job loss. Ms. Lee. Okay. Thank you, Mr. Chairman, very much. Mr. Dent. Thank you, Ms. Lee. At this time, I think our members have had a good opportunity to ask questions about the electronic health record in the public setting. We will now adjourn and move to closed session so that members may discuss with the Secretary issues that could compromise contract negotiations if discussed publicly. We ask members of the public to leave the room at this time. Associate staff members, committee staff, VA staff, and our court reporter, of course, may stay. So, with that, we will adjourn and go into closed session. I N D E X ---------- Department of Veterans Affairs Budget May 3, 2017 Witness Page Shulkin, Hon. David J.,.......................................... 5 Prepared statement........................................... 9 Chairman, Statement of........................................... 1 Ranking Member, Opening Statement of............................. 2 Full Committee Chairman, Opening Statement of.................... 3 Full Committee Ranking Member, Opening Statement of.............. 4 Access and Quality Web site...................................... 42 Accountability and Whistleblower Protection...................... 42 Agency Reform Plans.............................................. 62 Appeals Modernization............................................ 55 Blue Water Navy Veterans Act..................................... 40 Caregivers Program............................................... 50 Choice and Complementary Medicine................................ 54 Choice Program Future Funding.................................... 49 Choice Provider Payments......................................... 53 Correspondence Policy............................................ 43 Disability Claims and Appeals Backlog............................ 64 Disability Claims Backlog........................................ 61 Facility Realignment............................................. 33 Focus on Core Competencies....................................... 33 Fraud, Waste, and Abuse.......................................... 59 Future Demand on VA.............................................. 65 Health Disparities among Minority Veterans....................... 35 Interoperability with Department of Defense...................... 27 Joint Legacy Viewer (JLV)........................................ 28 Lincoln, Nebraska Clinic......................................... 49 Military Sexual Trauma........................................... 51 MyVA Initiative and VISN Realignment............................. 32 New Therapies for PTSD........................................... 41 Oakland Regional Office.......................................... 35 Office of American Innovation....................................62, 64 Opioid Abuse Prevention.......................................... 61 Other-Than-Honorable Discharges.................................. 49 Patient-Centered Care............................................ 45 Predicting Future Demand......................................... 34 Provider Payments................................................ 42 Public-Private Partnerships......................................47, 48 Recreational Therapy.............................................48, 49 Scheduling System................................................ 51 Senate-Confirmed Position Vacancies.............................. 52 Suicide Prevention Training......................................44, 65 The Future of Community Care..................................... 22 Third-Party Billing.............................................. 29 Transitioning Care Between VA facilities......................... 27 Vacant and Underutilized Buildings...............................65, 67 Veterans Choice Program..........................................24, 45 Veterans Crisis Line............................................. 63 Vista Electronic Health Records.................................. 21 Workforce and Facility Infrastructure Needs...................... 24 ---------- Department of Veterans Affairs--Office of Inspector General March 22, 2017 Witness Missal, Hon. Michael J., Inspector General, Department of Veterans Affairs opening statement............................. 142 Prepared statement........................................... 145 Chairman, Opening Statement of................................... 141 Ranking Member, Opening Statement of............................. 141 Actions against Prescription Drug Theft.......................... 183 Air Quality Environmental Concerns............................... 177 Allocation of Funding Increase................................... 192 Challenges of Veterans Crisis Line Rollover Calls................ 176 Choice Program................................................... 177 Choice Program Meeting Required Spending Targets................. 188 Collecting Data Based on Race and Ethnicity...................... 191 Collecting Race and Ethnicity Data............................... 180 Data Reporting by Race and Ethnicity............................. 197 Disability Claims Backlogs....................................... 186 Discrepancies in Wait Time Data.................................. 187 Efficiency in Processing Claims.................................. 191 Electronic Health Records........................................ 185 For-profit Schools Using the Post 9/11 GI Bill................... 186 GAO High Risk Report............................................. 186 GI Bill Backlog and Processing Delays............................ 194 Hiring Freeze Exemptions......................................... 196 Hiring Freeze Impact............................................. 190 Improvements in Scheduling Delays................................ 174 Nursing Pay Scales............................................... 198 Opioids Treatment Management..................................... 182 Oversight for Opioid Prescriptions............................... 182 Patient Wait Times............................................... 181 Possible Violation of Appropriations Law......................... 174 Proactive OIG Auditing........................................... 189 Problems with Suicide Hotline.................................... 174 Progress in Reducing Time Between Reports........................ 187 Procurement Deficiencies......................................... 180 Retiring Legacy Systems.......................................... 183 Risk of Purchase of Commercial IT Systems........................ 175 Rollout of Online Scheduling..................................... 181 Shift to Commercial IT Software.................................. 175 State Prescription Drug Monitoring Programs...................... 178 Timeline in Responding to Complaints............................. 193 Treatment of Ineligible Veterans................................. 194 Uniform Treatment Protocols for Suicidal Veterans................ 184 Unmet Funding Needs.............................................. 195 VA Animal Research............................................... 199 VA IG Staff Expansion............................................ 185 VA Information Systems Vulnerabilities........................... 179 VA OIG Resources Needs........................................... 188 VA's Antiquated Financial Management System...................... 175 ---------- Public Witnesses Hearing March 29, 2017 Blake, Carl, associate executive director of government relations, Paralyzed Veterans of America....................... 236 Prepared statement........................................... 261 Fuentes, Carlos, director national legislative service, Veterans of Foreign Wars................................................ 281 Prepared statement........................................... 284 Kelly O'Beirne, Heather, director, Veterans and Military Health Policy, American Psychological Association..................... 292 Prepared statement........................................... 296 Sganga, Fred, legislative officer, National Association of State Veterans Homes................................................. 308 Prepared statement........................................... 311 Varela, Paul, assistant national legislative director, Disabled American Veterans.............................................. 271 Prepared statement........................................... 273 Chairman, Opening Statement of................................... 235 Ranking Member, Opening Statement of............................. 235 Adding More VBA Staff or the Use of Technology................... 279 Alternatives to Long Term Facilities............................. 317 Assisted Reproductive Technology................................. 267 Care for Sexual Assault Victims.................................. 304 Consolidating Community Care Programs............................ 269 Construction of Research Facilities.............................. 00 Emergency Care Court Decision.................................... 269 Hiring Freeze and Processing Claims.............................. 279 In Vitro Fertilization........................................... 290 Infrastructure Needs When Non-VA Care is increasing.............. 290 Lack of Uniformity in Suicide Prevention Policies................ 303 Limitations on Appeals While the Record is Submitted............. 280 Mental Health Care Awareness Initiatives......................... 291 Mismatch Between Location of Veterans and State Homes............ 317 Paralyzed Veterans Having Access to Choice Program............... 268 Parking at VA Facilities......................................... 267 Preventing Veteran Suicides...................................... 301 Programs With the Most Urgent need for Increased Funding......... 266 Training for Crisis Hotline...................................... 301 Training that VA Provides Versus Private Sector Training......... 302 Transitioning Soldiers to Obtain Licenses and Credentials........ 279 Use of VA Versus Community Care.................................. 291 Veterans Oral History Project.................................... 318 ---------- Veterans Affairs Electronic Health Record November 15, 2017 Witness Shulkin, Hon. David J............................................ 324 Prepared statement........................................... 327 Chairman, Statement of........................................... 321 Ranking Member, Opening Statement of............................. 322 Full Committee Chairman, Opening Statement of.................... 323 Additional Funding to Community Interoperability................. 361 Administration Commitment........................................ 371 Alternative Medicine for Opioid Addiction........................ 362 Alternative Ways to Achieve Interoperable EHR.................... 368 Best Private Sector Management Practices......................... 366 Catching Up to DOD EHR Deployment................................ 337 Connection to Community Providers................................ 339 Cybersecurity Challenges......................................... 340 Description of Proposed EHR System............................... 335 EHR Program Management Office.................................... 340 EHR Vulnerability to Political Changes........................... 371 Elements Transferable from VistA................................. 339 Fate of Employees Trained on VistA............................... 372 Impact of Failure to Receive Reprogramming....................... 361 Indian Health Service EHR........................................ 370 Is the Timeline Too Aggressive?.................................. 337 Length of Time to Develop EHR.................................... 364 Lincoln, Nebraska Clinic......................................... 370 100 Percent Interoperability Guarantee........................... 362 Opioid Crisis.................................................... 342 Payment Systems Problems......................................... 342 Portable Accessibility to the EHR................................ 366 Problems Finding Minority and Small Business Subcontractors...... 343 Project Governance............................................... 341 Projection of Veterans' Personal Identity Information............ 367 Rolling Out System Geographically................................ 336 Timeframe to Deploy the Cerner System............................ 337 Transitioning From the VistA System.............................. 365