Letter to Secretary Shinseki - Explanation of Large Bonuses In Light Of Legionella Outbreak

Letter

U.S. Senator Pat Toomey (R-Pa.) is asking the Secretary of Veterans' Affairs (VA) Eric Shinseki to explain why large performance bonuses were given to two of the department's senior health care managers for Southwest Pennsylvania.

Michael Moreland, Director of Veterans Integrated Service Network 4, received at least two bonuses totaling more than $70,000. Terry Wolf, Director of the VA Pittsburgh Healthcare System, received a $12,924 bonus.

Over the last two years, legionella spread through Pittsburgh's VA hospitals. The VA Office of the Inspector General attributed the outbreak to lax management oversight, some of which of which was observed before and during the period for which the bonuses were awarded.

The text of Senator Toomey's letter to Secretary Shinseki is below:

The Honorable Eric Shinseki
Secretary
Department of Veterans Affairs
810 Vermont Avenue
Washington, D.C. 20420

Dear Secretary Shinseki:

I write to express my concern regarding bonuses paid to senior executives of your department in Southwest Pennsylvania (SWPA).

Mr. Michael Moreland, Director of Veterans Integrated Service Network 4, and Ms. Terry Wolf, Director of the VA Pittsburgh Healthcare System (VAPHS), each received five-figure performance bonuses for FY 2011 while legionella was spreading through VA hospitals in SWPA. The VA Office of the Inspector General attributed the outbreak to widespread management problems. Ms. Wolf received a $12,924 bonus. Mr. Moreland received a $15,619 bonus.

The VA has not yet announced its FY 2012 performance awards. Therefore Congress does not know if Mr. Moreland or Ms. Wolf were slated to receive performance bonuses for that year. However the department has deferred FY 2012 performance awards for some VA Senior Executives, including some in the Veterans Health Administration's Southeast and Pennsylvania medical networks, pending further review.

Based on your nomination, Mr. Moreland received the Presidential Distinguished Rank Award. The award ceremony took place three days after the VA OIG issued its report on Apr. 23 that found systemic failures at the Pittsburgh VA. The White House approved the award in Nov. 2012, i.e. the same month as VA's legionella notification.

In order to better understand how performance bonuses could be issued to senior executives responsible for such management lapses I would appreciate responses to the following questions:

1. What was the rationale for FY 2011 performance bonuses for Mr. Moreland and Ms. Wolf?

2. When did the VA become aware of the Legionella outbreak and what bearing did this knowledge have on their performance bonuses for FY 2011?

3. Will the VA provide performance bonuses to either Mr. Moreland or Ms. Wolf for FY 2012? If yes, what is the rationale? If no, was this a reversal of any previous decision to award FY 2012 bonuses to them?

4. To what extent was your continued support of Mr. Moreland's Presidential Distinguished Rank Award informed by your knowledge of the legionella outbreak?

Thank you for your service and attention to my request.

Sincerely,

Pat Toomey
U.S. Senator

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