VA privatization update – What does privatization really mean?

When confirmation hearings for the next Veterans Affairs secretary begin in a few weeks, privatization of the department will be the main focus of most lawmakers’ questions. Nearly everyone in the veterans community and on Capitol Hill is against privatizing VA — and nearly everyone has a different definition of what privatization is. Last week, VA officials released a statement titled “Debunking the VA Privatization Myth,” which insists “there is no effort underway to privatize VA,” and “to suggest otherwise is completely false and a red herring designed to distract and avoid honest debate on the real issues surrounding veterans’ health care.” The move came in response to comments from former VA Secretary David Shulkin, fired by President Donald Trump. In an op-ed just hours after his dismissal, Shulkin warned of individuals within the White House who “seek to privatize veteran health care as an alternative to government-run VA care.” But the definition of what privatizing the nearly $200 billion department would mean depends largely on who is making the argument. The VA “debunking” statement notes that the department budget has gone up five times in the last 20 years, and the VA workforce has increased about 60 percent since then (to around 385,000 workers). The argument is that adding more resources to the bureaucracy can’t be considered privatizing VA. But veterans groups have noted that increase is a function of inflation and increased demands on the department, and has little to do with future plans to shift more resources into community care programs.

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