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>From Wash (DC) Post

VA Planning Major Layoffs
1,100-Plus Jobs May Be Lost at Medical Facilities
By Bill McAllister
Washington Post Staff Writer
Friday, April 16, 1999; Page A27

More than 1,106 workers at veterans hospitals face loss of their jobs under
reductions in force approved this week by Veterans Affairs Secretary Togo D.
West Jr.

VA officials said yesterday that requests for additional RIFs at nine VA
medical facilities are awaiting West's approval. Overall, it could be one of
the biggest layoffs any federal department has approved in recent years.

The VA was moving ahead with the reductions even as lawmakers were
squabbling over how much to add to the Clinton administration's $44 billion
VA budget for fiscal 2000. A senior VA official, speaking on condition of
anonymity, could not offer assurance that some layoffs would be averted even
with additional funds.

Some of the staff cuts stem from budgetary problems faced by the
department's network of nearly 170 hospitals, the official said. Others are
because of changes in how the VA delivers health care to the nation's 25
million veterans, he said. The department is moving away from hospital-based
care toward community-based outpatient clinics that offer preventive care.
The result is that many hospital workers are no longer needed, the official
said.

Most of the announced 1,106 layoffs would be at VA hospitals in the North,
mainly in New York, New Jersey and Illinois. They result, in part, from
recent legislation that directed the department to shift funds to hospitals
in the Sun Belt. The migration of elderly veterans to those states has
crowded VA hospitals there, creating longer waits for doctor appointments
and other services.

There was no mention of RIFs at any Washington area facilities in the
downsizings approved by West, officials said. The VA's Washington health
care headquarters lost about 253 positions, or 20 percent of its staff, in
1996. The VA has conducted a number of small RIFs at hospitals in other
areas in the past two years.

The department asked Congress this week for renewed authority for
buyouts--payments of up to $25,000 to encourage employees to leave the
payroll.

Under federal personnel law, federal workers must be given 60 days' notice
of a layoff. The RIF procedures triggered by the law then allow senior
workers to "bump" others in lower-level positions and to transfer to other
federal installations if comparable jobs are vacant.

As early as 1996, VA officials were warning that the department, without
sharp budget increases, faced layoffs of up to 10,000 workers, including
physicians and nurses.

Last year they issued similar warnings, saying the VA urgently needed new
sources of revenue, especially Medicare reimbursements, if it was to avoid
large-scale layoffs this year. Congress did not approve the Medicare plan
and the administration did not budge from its plans not to increase veterans
health care spending.

The flat VA budget has prompted an intense lobbying effort by veterans
groups and a firestorm between Democrats and Republicans over how much to
add to the VA budget. On Wednesday, several leaders of the Senate and House
Veterans Affairs committees hailed an agreement by budget conferees to add
$1.7 billion to the VA's 2000 health care budget.

Rep. Lane Evans (Ill.), ranking Democrat on the House panel, objected to the
spending agreement, however, calling it "a wolf in sheep's clothing." He
said it will cut the VA's discretionary spending, which goes largely to the
hospitals, by $1.4 billion in 2001.


© Copyright 1999 The Washington Post Company



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