The Veterans Health Administration (VHA), part of the Veteran Affairs (VA), is one of the largest purchasers of medical devices. With 152 hospitals across the country, the VHA spent $562M on implants alone in 2012, a 28% increase from 2008.
However, the VHA recently came under fire from the Government Accountability Office (GAO) for how they purchase, track and use medical devices.
According to the GAO report, the VHA is being investigated on three fronts:
1) Failed to seek most competitive market prices for implants
The VHA is paying a higher than normal price for medical devices. Surgeons at VHA usually determine needs for surgical implants, request the implant of their choice for purchase, and perform the clinical procedures to implant the items. While VA has negotiated compet …