Colo. representative demands explanation for $1B cost overruns for VA hospital

U.S. Rep. Mike Coffman (R-Aurora) has demanded the Department of Veterans Affairs release an investigative report on cost overruns at a VA hospital currently under construction in Aurora, Colo., reports the Aurora Sentinel.

Advertisement

The full report, which was completed last September, was finally released to the chairman of the House Veterans Affairs Committee last week.

“I insist you make this document available to other members of Congress and the American people,” Rep. Coffman said in a letter to VA Secretary Robert McDonald. “American taxpayers and veterans are entitled to VA’s detailed explanation as to how the costs of this project spiraled out of control seemingly overnight.”

An investigation by the Corps of Engineers blamed the overruns on multiple design changes and a decision by VA officials to use a complicated contracting agreement that wasn’t fully understood.

The $1.7 billion total price tag for the Aurora VA hospital means the medical center will cost nearly triple the original estimate.

The hospital is slated to open in January 2018.

More articles on finance issues: 

S&P revises Nash Health Care Systems’ outlook to negative
S&P downgrades Presence Health’s rating to ‘BBB-‘
Fitch affirms Orange Regional Medical Center’s ‘BB+’ rating

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Download Whitepaper

The cost-saving opportunity most health systems overlook

Many hospitals and health systems scrutinize staffing, service lines, and payer contracts for savings. Fewer look at one of their largest assets: real estate.…

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.