VA Health Care: Methodology for Estimating and Process for Tracking Savings Need Improvement

A letter report issued by the Government Accountability Office with an abstract that begins "GAO found that VA’s estimated savings from two of its six operational improvements lacked analytic support and estimated savings from another were flawed. Without a sound methodology for estimating these savings, VA runs the risk of not achieving them. Furthermore, due in part to flaws GAO identified with another operational improvement—reducing acquisition costs—VA decided to revise it. Because this effort was still in progress, GAO could not evaluate VA’s estimated savings and process for tracking actual savings from this operational improvement. In addition, GAO found that VA lacks a process for tracking actual savings for one operational improvement and its processes may overstate results for two others. Without an accurate process for tracking these savings, VA will be unable to determine whether it has realized the estimated savings reflected in the President’s budget request for fiscal years 2012 and 2013.