Committee learns details of VA Project HERO

Washington, DC – Veterans, especially those living in rural areas, may benefit from a demonstration project to be conducted by the Department of Veterans Affairs (VA) as heard today by the House Committee on Veterans’ Affairs. The oversight hearing was held for members to learn about Project Healthcare Effectiveness through Resource Optimization (HERO), a series of demonstration projects seeking to improve and enhance health care for veterans.

The initiative is VA’s response to direction from Congress that required the department to examine and implement health care management strategies that have proven valuable in the broader public and private sectors. Currently, VA may use private health care providers outside VA when its own facilities cannot provide suitable care.

Rep. Tom Osborne (R-Neb.), emphasizing the importance of efficient, high-quality contract care, told the committee of difficulties faced by veterans seeking VA care among his constituency.

“At each stop I make in my district, veterans express to me their concern about traveling hours for medical care,” Osborne said. “Many travel one to two hours to receive primary medical care, while some veterans who live in western Nebraska must travel at least four days round-trip to have testing done in Omaha at the VA hospital.”

“This hearing is timely, so that the committee can acquire the most current information on Project HERO and gives us an opportunity to discuss, very publicly, what its realistic goals and objectives are,” Buyer said. “Moreover, it will provide everyone here an opportunity to share with VA what parameters should be set in order to get the best results, enhancing VA health care benefits for America’s veterans.”

In addition to testimony from VA, the committee heard from representatives of The American Legion and the Independent Budget. Also testifying were the CEO of Humana Military Healthcare Services, which provides health care to military retires using the TRICARE system, and Rep. Osborne.

“I am always interested in hearing about new and innovative ways to enhance health care access for our nation’s veterans, while at the same time making prudent use of the taxpayers’ dollars,” said Subcommittee on Health Chairman Henry Brown (R-S.C.), who said that testimony should allay some fears among veterans’ groups that VA seeks through the project to outsource care on a large scale.

In their legislation that prompted Project HERO, Congress stated that health care purchased for veterans from private sector providers must be secured in a cost effective manner, in a way that complements the larger Veterans Health Administration (VHA) system of care, and sustains VA’s strong system of affiliations with medical universities nationwide.

As stated by VA, Project HERO’s objectives are to:

• Increase the efficiency of VHA processes associated with purchasing care from outside sources,

•  Reduce the growth of costs associated with purchased care,

• Implement management systems and processes that foster quality and patient safety, and make contracted providers virtual, high-quality extensions of VHA,

• Control administrative costs and limit administrative growth,

• Increase net collections of medical care revenues where applicable, and

• Increase enrollee satisfaction with VHA services.
  

The department plans to conduct Project HERO demonstrations at four Veterans Integrated Service Networks (VISNs) by the end of this year: VISN 8, VA Sunshine Healthcare Network; VISN 16, South Central VA Health Care Network; VISN 20, Northwest Network; and VISN 23, VA Midwest Health Care Network. Participation at each site would be entirely voluntary for veterans.

“We must be open to the possibilities, but cognizant of the importance of preserving the quality associated with VA health care,” Buyer said. “This initiative is not intended to undermine our affiliations, or lead to expanded outsourcing or the replacement of existing VA facilities. It should instead help us learn how to improve some of the contracted care we now provide, and the way we provide it.”

###