Defense Secretary Robert Gates on Wednesday said that Walter Reed Army Medical Center should be closed in 2011 as scheduled, a conclusion that "runs counter" to the recommendation of some congressional lawmakers who believe the Pentagon should reverse its 2005 decision to close the facility, the AP/Houston Chronicle reports. Gates also announced that a committee is being formed to ensure that recommendations on military and veterans' health care made by the Independent Review Group and other task forces are being enacted (Burns, AP/Houston Chronicle, 5/2). Gates appointed the review group in February after the Washington Post featured a series detailing poor conditions for people receiving outpatient care at Walter Reed. The nine-member panel is co-chaired by Togo West, secretary of the Army under former President Bill Clinton, and John Marsh, secretary of the Army under former President Ronald Reagan.

The panel in April recommended that the Department of Defense accelerate plans to enact a 2005 decision to close Walter Reed and have its facilities merged with the National Naval Medical Center in Bethesda by 2011. The panel said that funding for the project should be released promptly so construction on the new $2 billion facility could begin right away. The panel also recommended that hundreds of millions of dollars be invested in Walter Reed until its closing in order to address problems with infrastructure and a shortage in nursing and medical staffs.

The panel in its report found that a White House initiative to privatize parts of the federal work force had had a "destabilizing effect" on Walter Reed's ability to hire and retain quality staff. The group recommended that Walter Reed and other military treatment facilities be exempt from the privatization policy. Panel members also called for the creation of a "center of excellence" that would train and educate medical staff and troops about traumatic brain injury and post-traumatic stress disorder (Kaiser Daily Health Policy Report, 4/12).

Closure Promoted
Panel members during a Wednesday news conference reiterated their recommendation that Walter Reed be closed. Gates said, "Far better to make an investment in brand-new, 21st-century facilities" than put more money into Walter Reed indefinitely, adding, "[H]ow can we accelerate getting those facilities in place? And how can you keep high-quality staff at Walter Reed right up until the day that people transfer to one of the other hospitals?" (AP/Houston Chronicle, 5/2).

Gates on Wednesday also announced that his Deputy Defense Secretary, Gordon England, will lead a strategy and oversight group designed to carry out the recommendations of the Independent Review Group and other panels. The group will meet on a weekly basis, Gates said (Barnes, Baltimore Sun, 5/3).

VA Bonuses
In related news, the AP/San Francisco Chronicle on Thursday examined how Veterans Affairs officials received bonuses in 2006 up to $33,000, despite "a politically embarrassing $1 billion shortfall that put veterans' health care in peril." The VA in 2006 allocated a bonus package of more than $3.8 million, with annual bonuses to senior VA officials averaging more than $16,000 -- "the most lucrative in government," the AP/Chronicle reports. The bonuses are determined by heads of VA divisions based on performance evaluations. VA Secretary Jim Nicholson approves all final bonus packages.

Sen. Daniel Akaka (D-Hawaii), chair of the Senate Veterans' Affairs Committee, requested an explanation for the bonuses from Nicholson, also asking the department to outline steps to address the bonus disparities between the senior VA officials in Washington, D.C., and those in other parts of the nation. He said, "Awards should be determined according to performance. I am concerned by this generous pat on the back for those who failed to ensure that their budget requests accurately reflected VA's needs." VA spokesperson Matt Burns said that the bonuses are necessary in order to retain top, valuable staff. He said, "Rewarding knowledgeable and professional career public servants is entirely appropriate," adding, "The importance of retaining committed career leaders in the government organization cannot be overstated." Burns said that the department is reviewing Akaka's request (Yen, AP/San Francisco Chronicle, 5/3).

Broadcast Coverage
PBS' "The NewsHour with Jim Lehrer" on Wednesday reported on the findings of the Independent Review Group. The segment includes comments from Marsh (Holman, "The NewsHour with Jim Lehrer," PBS, 5/2). The program on Wednesday also included a discussion about the findings with West (Lehrer, "The NewsHour with Jim Lehrer," PBS, 5/2). Audio and a transcript of both segments are available online.

"Reprinted with permission from kaisernetwork. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at kaisernetwork/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork, a free service of The Henry J. Kaiser Family Foundation . © 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

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