VA Releases Financial Analysis on Future Proposals - VA Black Hills Health Care System
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VA Black Hills Health Care System


VA Releases Financial Analysis on Future Proposals

Hospital and clinic building at Hot Springs VAMC
Wednesday, June 13, 2012

U.S. Department of Veterans Affairs (VA) Veterans Integrated Service Network (VISN) 23 and VA Black Hills Health Care System released the financial analysis on the proposed reconfiguration of health care services in western South Dakota and parts of Nebraska and Wyoming.

The financial analysis was requested by the South Dakota and Nebraska Congressional delegations, Veterans Service Organizations and other stakeholders.

The first part, the independent capital cost analysis, was completed by Jones Lang LaSalle, a leading real estate financial services provider to public sector agencies and organizations around the world, using industry standard 30-year life cycle.  The capital costs are associated with the construction, renovation, leasing and maintenance of the buildings and their utilities.  

The second part, the operating cost analysis, was completed by the Network’s Chief Financial Officer and the Office of Finance within the Veterans Health Administration.    

The analyses indicate the most effective capital cost option for improving Veterans’ access to high quality health care services in this region is to build new facilities, rather than renovate, and maintain them for a period of 30 years at an estimated total cost of $148 million.  Additionally, the operating cost analysis shows an estimated $26 million net savings per year in salaries, medical supplies, and contracts while including an additional $5 million for purchased care in the communities. 

"We have always stated our main focus is on providing access to safe, high quality care, closer to Veterans' homes.  This financial analysis complements that by demonstrating good stewardship of taxpayers' dollars," said Steve DiStasio, Director - VA Black Hills Health Care System.

Similar analyses on alternate proposals received on or before June 30, 2012 will be conducted.  

A link to the analyses is located on our VA Black Hills Future page 



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