Estimated savings for two of six department-wide operational improvements the VA is carrying out lack analytic support and savings estimates for another are flawed, GAO has said.
The President’s fiscal 2012 and 2013 budget request for the VA assumes $2.5 billion in savings stemming from six management initiatives but if they aren’t realized the department will need to grapple with difficult trade offs, according to GAO-12-305.
It said savings estimates for efforts to reduce costs for medical and administrative support and to realign VA clinical staff and resources by using less costly health care providers lack analytic support.
Estimates for savings in three of the six initiatives that are part of an effort to reduce costs associated with operating and leasing real estate may be overstated as well, GAO said in calling on the department to develop a better estimate methodology.
GAO said the methodology should include an explanation of how savings from each operational improvement will be achieved, an explanation for the basis of any assumptions included in the estimates, and an implementation plan with a realistic timeline.