WASHINGTON (May 7, 2004) - Secretary of Veterans Affairs Anthony J. Principi will announce today details of a comprehensive plan to modernize the Department of Veterans Affairs (VA) health care system. The plan includes new hospitals in Orlando and Las Vegas, 156 new community clinics, four new spinal cord injury centers, two blind rehabilitation centers and expanded mental health outpatient services nationwide.

The investment of nearly $1 billion annually for several years is the result of a major three-year review of the medical system serving America's 25 million veterans.

"Thanks to the contributions of more than 200,000 people who shared their thoughts with us, plus the hard work of VA staff and a special independent commission, VA now stands ready to bring greater access to quality care closer to where most veterans live," Principi said.

The three-year review called CARES stands for "Capital Asset Realignment for Enhanced Service." It was a landmark study of the nation's largest health care system, which is operated by VA. CARES assessed veterans' current health care needs and developed recommendations for meeting those needs in the future.

By opening health care access to more veterans, VA expects to increase the percentage of enrolled veterans from 28 percent of the veterans' population today, to 30 percent in 2012 and 33 percent in 2022.

The decisions announced today by Secretary Principi include:

Construction of new medical centers in Orlando, Fla., and Las Vegas, Nev.;

Creation of more than 150 new community-based outpatient clinics;

Rehabilitation and modernization of medical centers;

Potential creation of four new - and expansion of five existing - spinal cord injury centers; and

Opening up two new blind rehabilitation centers.

In some cases, the plan also calls for transferring care from antiquated facilities to more modern or better located VA facilities or contracting for care in local communities.

"No veteran will lose health care as a result of CARES, nor will there be any gaps in health care services," Secretary Principi added. "In fact, we will be able to expand outpatient services and provide more of the care veterans want and use."

Full details about the secretary's decision will be available on the Internet at www.va.gov .

"CARES allowed us to identify the infrastructure that VA needs to care for veterans in the 21st century," said Dr. Jonathan Perlin, VA's acting under secretary for health. "We'll be able to spend more of our resources on doctors, nurses and medical care, instead of building maintenance."

Perlin noted the realignment will also enable VA to avoid imbalances in its services in the future, by making sure the size and location of its health care facilities match the needs of veterans.

In July 1999, the General Accounting Office estimated that VA diverted a million dollars a day from health care to maintenance of unneeded or unused facilities. Most VA facilities are more than 50 years old, although the industry standard for health care in the private sector is less than 10 years.

On Aug. 4, 2003, VA unveiled a 100-page draft national plan that was developed by VA's staff. That plan was reviewed by an independent, 16-member CARES commission which presented its own recommendations to Principi on Feb. 13 after conducting 38 public hearings, 10 public meetings, hearing from 770 witnesses and receiving written comments from more than 212,000 people.