An Analysis of the Veterans Equitable Resource Allocation (VERA) System

Abstract : The Veterans Equitable Resource Allocation (VERA) system was instituted by the Veterans Health Administration (VHA)-the organization in the Department of Veterans Affairs (DVA) that is responsible for providing health care to veterans-in 1997. The system was designed to improve the allocation of the congressionally appropriated medical care budget to the 22 regional service networks that comprise the VA health system. In recent legislation (H.R. 4635), the U.S. Congress asked the DVA to conduct a study on whether VERA adequately meets the special needs of some veterans. In response to this legislation, the VHA asked RAND's National Defense Research Institute to undertake this study. Specifically, this study examines the degree to which VERA accounts for differences in the age and geographic location of facilities, their patient case mixes, and other factors. The study also examines cost issues associated with affiliations between VA facilities and academic medical centers. The findings and recommendations from the study are documented in this report. Study findings should be of interest to VA personnel, Congress, and other policymakers-particularly those interested in health care for veterans. Health economists and policy planners may also have an interest in the findings. This research was sponsored by the DVA and was carried out jointly by RAND Health's Center for Military Health Policy Research and the Forces and Resources Policy Center of the National Defense Research Institute. The latter is a federally funded research and development center sponsored by the Office of the Secretary of Defense, the Joint Staff, the unified commands, and the defense agencies.