Article 66. 'Bonus Culture' at VA Scrutinized by House Committee

Now we have further proof that the VA needs sweeping reform. Since Sweeping Reform is unlikely to be implemented by the VA itself I recommend that VA reforms be implemented by a Congressionally Chartered Veterans Affairs Reform Committee.  This Committee should have the power to bring in outside Consultants to implement the needed reforms. The result could be that the VA becomes the best managed organization in the Federal Government or the alternative "business as usual".

Lawrence Rosier Principal Consultant

From: 'Outlandish bonus culture' at VA scrutinized by House committee

 By Joshua Rhett Miller Published June 20, 2014  FoxNews.com 

 

An internal investigation released in June 2014 that looked at wait times for all sorts of care across the VA system showed that new mental health patients were routinely forced to wait a month or more to start treatment. Not one of the 141 medical systems examined was able to meet the department's goal of getting all new mental health patients an appointment within 14 days. (AP/David Goldman, File)

Throwing millions of dollars in "outlandish" bonuses around helped create a dangerous culture within the Department of Veterans Affairs - particularly at the Arizona office - where financial incentives trumped patient care, lawmakers said Friday.
House Committee on Veterans’ Affairs Chairman Jeff Miller, R-Fla., led the grilling of Gina Farrisee, the VA’s assistant secretary for human resources and administration, zeroing in on a bonus system that saw about $10 million awarded to executives at the Phoenix VA Health Care System alone over a three-year period. In total, the VA gives out an estimated $400 million per year in performance bonuses.

“Knowing what we know now, about the fraudulent actions being taken at facilities all across this country that have harmed our veterans, do you think that the department’s assessment that 100 percent of senior managers at VA have been fully successful in the past four years is in line with reality?” Miller asked.

Despite revelations that veterans died languishing on waiting lists and some of the lists were even hidden, at least 65 percent of its senior executive workforce received the bonuses, said Miller.
“As the committee’s investigation into the department continues, and new allegations and cover-ups are exposed, it is important that we examine how the department has arrived at the point where it is today,” Miller said in prepared remarks. “Sadly, it’s a point which has eroded veterans’ trust and America’s confidence in VA’s execution of its mission. Part of the mistrust centers on a belief that VA employees are motivated by financial incentives alone, and I can see why.”

"Part of the mistrust centers on a belief that VA employees are motivated by financial incentives alone, and I can see why."- Rep. Jeff Miller, chairman, House Committee on Veterans’ Affairs

Farrisee acknowledged the need to hold VA employees and supervisors accountable, particularly regarding performance, but defended the pay bonuses.

“We must recruit and retain the best talent, many of whom require special skills in health care, information technology, management and benefits delivery,” Farrisee testified. “In particular, VA requires talented senior executives to manage the complex set of facilities and programs that VA is responsible to administer.

“Performance plans are the foundation of accountability not only for senior executives but for the entire workforce,” Farrisee’s prepared remarks continued. “Senior leadership engagement in managing executive performance plans, including counseling and mid-year assessments, also serves as the model for the general schedule workforce.”

Farrisee, who joined the agency in September, admitted to Miller that not a single member of its senior executive service – a pool of 470 individuals – received less than a fully satisfactory or successful rating. She acknowledged that the VA's recently exposed problems don't jibe with an agency rewarding employees for stellar work.

Comment by Lawrence Rosier
I disagree with Farrisee's statement: 
“We must recruit and retain the best talent, many of whom require special skills in health care, information technology, management and benefits delivery,” Farrisee testified.
The primary talent which these managers have is in calculating their bonuses.  The critical skills they lack is the management tools for determining exactly where staffing is needed to meet the 14 day appointment guide line.  They also lack the capability to determine the maximum through put of patients necessary for balancing the healthcare work loads.  These tools make a Health Care facility effective and efficient thus saving the tax payers real money.  This is what bonuses are given for in private industry.