The era of downsizing is far from over, at least at the Veterans Health Administration.
Eleven VHA facilities have targeted as many as 926 jobs for elimination. Those same facilities want to give buyouts to 406 employees, Dr. Kenneth W. Kizer, Veterans Affairs undersecretary for health, testified Tuesday before the Senate Veterans Affairs Committee. Staffing plans for another eight VHA facilities are still under review at VA headquarters.
"In all budget years, facilities ... are encouraged to continue efforts to identify potential staffing efficiencies through restructuring," Kizer said. "This is a necessary part of sound health care management that serves to improve the delivery of services to patients."
Kizer said he would prefer to use buyouts rather than layoffs, but Congress must authorize buyout authority for agencies. VHA's previous buyout authority expired in December 1997. On Tuesday, VHA submitted a formal request to Congress for new buyout authority.
VHA has authority to offer employees early retirement packages through the end of this fiscal year.
The reductions to VHA's 185,000-employee workforce are part of an ongoing restructuring effort that involves merging facilities, consolidating services, contracting out certain functions, eliminating supervisory positions, and shifting the focus from in-patient hospital care to out-patient services at clinics.
Sen. Tim Hutchinson, R-Ark., noted that the Senate voted last month to raise the Clinton administration's proposed $18 billion fiscal 2000 VA health care budget by $3 billion. The House voted to increase the proposed budget by $1.1 billion.
Kizer said a bigger budget would reduce the pressure for staff reductions, but he would not rule out cuts even if the increases are enacted.
The proposed cuts are at the following VHA facilities: Northport, N.Y.; Albany, N.Y.; Bath, N.Y; the Western New York Health Care System; Canandaigua, N.Y.; the New Jersey Health Care System; the South Texas Health Care System; Hines, Ill.; the Chicago Health Care System; Sheridan, Wyo.; and the Hudson Valley Health Care System.