VA Health Care

Selection of a Planned Medical Center in East Central Florida Gao ID: HRD-93-77 March 1, 1993

The Department of Veterans Affairs' (VA) decision to build its east central Florida medical center at the Crowntree Lakes site rather than as a joint venture is, in GAO's view, unjustified and will likely boost the government's overall construction and operating costs. The March 1992 VA study that recommended the Crowntree Lakes sites was significantly flawed and does not support VA's decision. Moreover, the estimated cost to build the medical center has mushroomed by about $80 million, and projected completion has been delayed by three years. GAO supports VA's 1991 conclusion that the North Viera site, which remains available for a joint venture, would better meet the needs of east central Florida veterans at a lower cost to the government. In addition, construction of a new VA outpatient clinic and nursing home at a site near Orlando to be donated by North Viera's developer would create a potential for sharing arrangements with the Navy. Such arrangements could include treatment of Orlando-area veterans on a space available basis in unused acute care capacity at Orlando Naval Hospital.

GAO found that: (1) VA did not adequately support its site selection process; (2) the Orange County site would increase the government's overall construction and operating costs; (3) the selection process was inconsistent with the selection criteria VA announced in 1988; (4) the March 1992 VA study recommending the preferred site was defective; (5) the site in North Viera, Florida, would lower the cost to the government, since it would be a joint venture with the Air Force to replace or renovate an existing hospital; (6) VA consideration of additional sites caused a 3-year delay in the VA medical center's construction schedule and added almost $80 million to its costs; and (7) joint ventures with the Air Force in North Viera and the Navy in Orlando would reduce medical care costs and improve services for all concerned participants.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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