This study calculated the potential change in costs from regionalizing open
heart surgery units in a geographic network of the Department of Veterans
Affairs (VA). It used data from the VA's cost accounting system and the aut
hors conducted a sensitivity analysis. Under consolidation, savings from cl
osing an open heart surgery unit would be partially offset by the costs of
treating nonemergency cases at other VAs, treating emergency cases at non-V
A hospitals, and transporting patients to regionalized facilities. Neverthe
less, the potential savings from consolidation would exceed $3 million, or
18% of the network's costs of treating open heart surgery patients.