The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1997, Landmark Communications, Inc.

DATE: Wednesday, January 15, 1997           TAG: 9701150473
SECTION: FRONT                   PAGE: A4   EDITION: FINAL 
DATELINE: WASHINGTON                        LENGTH:   25 lines

VA SHIFTS MORE FUNDING TO SOUTHERN STATES

The Veterans Affairs Department announced Tuesday it was revising the way it allocates more than $14 billion in medical care funding, with shifts from northeastern to southern and southwestern states.

The new formula, which the VA says will correct historic geographic imbalances, will result in greater funding for 15 of the 22 VA medical care networks and, as phased in over three years, decreases for seven.

The model allocates funds based on a national price for two types of patients - those with routine health-care needs and those with special, long-term problems such as spinal cord injury, chronic mental illness, nursing home care or end-stage AIDS.

It also takes into account that many veterans temporarily move to warmer climates during the winter.

The VA network based in the Bronx borough of New York City will see the biggest decrease in its budget, 15 percent phased in over three years. Others facing smaller budgets are Chicago; Albany, N.Y.; Boston; Ann Arbor, Mich.; Pittsburgh; and Omaha.


by CNB