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<classification authority="sudocs">GA 1.13:HEHS-98-64</classification>
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 <subject>Health services administration</subject>
 <subject>Veterans hospitals</subject>
 <subject>Veterans benefits</subject>
 <subject>Defense contingency planning</subject>
 <subject>Health resources utilization</subject>
 <subject>Health care costs</subject>
 <subject>Hospital bed count</subject>
 <subject>Patient care services</subject>
 <subject>Health care cost control</subject>
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<titleInfo>
 <title>VA Health Care: Closing a Chicago Hospital Would Save Millions and Enhance Access to Services</title>
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<abstract>Pursuant to a congressional request, GAO reviewed whether the Veterans
Health Administration (VHA) could serve Chicago veterans with three
hospitals, focusing on: (1) the extent of the resources that could be
redirected to improve patient care; and (2) the potential impact of one
hospital closure on VHA&apos;s other missions.&lt;p/&gt;GAO noted that: (1) VHA can meet the health care needs of Chicago-area
veterans by operating three hospitals instead of four; (2) VHA began
fiscal year (FY) 1997 operating 1,665 inpatient medicine, surgery, and
psychiatry beds at the four Chicago hospitals, and veterans used 850
beds a day, on average; (3) the large supply of unused beds provides
sufficient capacity to meet the needs of veterans now using Lakeside or
West Side; (4) for example, during FY 1997, veterans used an average of
145 and 198 beds a day at Lakeside and West Side, respectively, while
during the same period Hines Hospital closed 262 beds and North Chicago
closed 244 beds; (5) moreover, veterans&apos; demand for VHA hospital care is
expected to continue declining as: (a) treatments shift from inpatient
to outpatient settings; and (b) the Chicago-area veteran population
continues to decrease; (6) in addition, other Chicago public and private
hospitals have about 5,700 excess beds, which VHA could use on a
contract basis to meet veterans&apos; inpatient needs closer to their homes,
as VHA does elsewhere; (7) regardless, veterans would continue to have
good access to health care if either Lakeside or West Side hospital is
closed because most of the veterans using these facilities live in
essentially the same residential areas; (8) GAO&apos;s analysis showed that
consolidating services into three locations could reduce VHA
expenditures an estimated $200 million over the next 10 years by
lowering facility operating and maintenance costs as well as avoiding $6
million to $27 million in renovation costs; (9) in addition, VHA could
potentially generate millions of dollars in revenues through the lease
or sale of property from the closed location; (10) VHA would, however,
incur one-time costs for relocating some clinical services, but the
savings could be used to enhance services to veterans, including adding
needed new community-based outpatient clinics and buying new equipment;
(11) VHA would also be able to meet its education, research, and DOD
contingency missions by operating three hospitals; (12) this is because
the three remaining locations would likely carry the same workload that
four locations would have, thereby providing a sufficient number of
patients for VHA to maintain a comparable level of education and
research opportunities; and (13) VHA will also be able to provide a
flexible portion of its operating beds for military casualties, if
needed, which was set at about 40 percent in 1997.</abstract>
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<identifier type="preferred citation">GAO/HEHS-98-64</identifier>
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<note>Letter Report</note>
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<subject>
 <topic>Health services administration</topic>
 <topic>Veterans hospitals</topic>
 <topic>Veterans benefits</topic>
 <topic>Defense contingency planning</topic>
 <topic>Health resources utilization</topic>
 <topic>Health care costs</topic>
 <topic>Hospital bed count</topic>
 <topic>Patient care services</topic>
 <topic>Health care cost control</topic>
 <topic>Chicago (IL)</topic>
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  <title>United States Public Law 262 (104th Congress)</title>
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 <identifier type="public law citation">Public Law 104-262</identifier>
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