U.S. Sen. John Boozman questioned the U.S. Department of Veterans Affairs secretary Tuesday about two VA-related issues in Arkansas: millions of dollars in reimbursements owed to many of the state's health care facilities and defunct solar panels at the Little Rock VA hospital.
Though VA Secretary Robert McDonald didn't give specifics on how either problem occurred, he told the Arkansas Republican during a Senate Appropriations Committee hearing that changes have been made in the reimbursements and construction divisions of the VA -- steps that he said will prevent such problems in the future.
When asked about the estimated $24 million owed to Arkansas hospitals that have provided health care to veterans but haven't been reimbursed for it, McDonald reiterated what VA officials told hospital representatives during an April 8 meeting hosted by Boozman's office at Pulaski Technical College in North Little Rock.
At that meeting, Paul Cunningham, executive vice president of the Arkansas Hospital Association, said about 4,400 claims to the VA from about 60 Arkansas hospitals and nonprofits have been denied or are in limbo.
Boozman told McDonald on Tuesday that the lack of reimbursements has led to "trust issues."
"The VA owes lots of people in Arkansas money and has not been forthcoming in paying those bills," Boozman said. "That's a real concern. If you don't pay your bills, they're going to quit dealing with you, and that is going to effect quality of care for veterans."
McDonald said the VA was centralizing the division that pays non-VA facilities for providing care to veterans -- a move that he said would "dramatically increase rates with which people get paid."
Carolyn Clancy, the interim undersecretary for health for the Department of Veterans Affairs, said Tuesday that the VA is tracking the claims weekly.
Clancy said the South Central VA Health Care Network, of which Arkansas is a part, has been "struggling for a while" but is "actually improving better than other regions."
Boozman also asked about solar panels in the parking lot of John L. McClellan Memorial Veterans Hospital in Little Rock that have been inoperable since they were installed in 2013.
Boozman and U.S. Rep. French Hill, R-Ark., have been looking into the solar-panels matter since it was reported earlier this month that a section of them was being taken down to make way for a new parking deck.
The 7,300 panels have never been activated because they do not meet the requirements for going online in Entergy's electrical system, Marty Risner, an energy manager with the U.S. Department of Veterans Affairs, said April 9.
On Tuesday, Boozman said the solar-panels project and the $9.125 million project to build the parking deck were approved in 2012, even though they were located in the same area.
"We have an issue in Little Rock," Boozman said. "In February 2012, we got an $8 million grant to build a solar-panel system. In August 2012, the VA approved a parking deck project that was located in same place of the solar panels. In January 2013, the solar-panel project began. VA officials were aware of the conflict at the time.
"What I'd like to know is, what are the safeguards? How are you dealing with this kind of stuff?"
McDonald, who was sworn in as VA secretary in July, noted that the project started before he was involved with the VA.
He also pointed out that the VA has hired a new top construction executive, Greg Giddens.
Giddens replaced Glenn Haggstrom, who left during an internal inquiry into a project to build a new VA hospital in Aurora, Colo. That project experienced delays and was estimated to be $1 billion over-budget.
"We're digging into this in the strongest possible way," McDonald said of the Little Rock projects. "That happened in 2012. I appreciate you bringing it up, but that's not going to happen in the future. It's just not going to happen."
Boozman said Hill was looking into the matter "very vigorously."
Hill first sent a letter to McDonald on April 8 asking him why the parking garage project was approved after the solar panels were already in place.
Boozman and Hill sent a letter Monday to VA's inspector general's office requesting an investigation.
"We have a number of concerns and questions regarding this project, and it is essential that we ensure accountability and transparency when utilizing precious taxpayer dollars to support these extensive and costly government projects," the letter reads.
Metro on 04/22/2015