" POSSIBLE FRAUDULENT ACTIONS BY VA EMPLOYEES INVOLVED IN DRUG HEARING BEFORE THE SUBCOMMITTEE ON FEB 2 0 1986 EXCHA COPY OUT BIVICIUN HOSPITALS AND HEALTH CARE OF THE COMMITTEE ON VETERANS' AFFAIRS HOUSE OF REPRESENTATIVES NINETY-NINTH CONGRESS FIRST SESSION 56-909 O OCTOBER 17, 1985 Printed for the use of the Committee on Veterans' Affairs Serial No. 99-36 U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1986 El 37 19 Mar. 86 Possible Fraudulent Actions by VA Employees Involved in Drug Procure- OPENING STATEMENTS Butler, William T., M.D., president, Baylor College of Medicine, and chair- man, special medical advisory group, Veterans' Administration Prepared statement of Dr. Butler Custis, Donald L., M.D., former Chief Medical Director, Veterans' Administra- Gronvall, John A., M.D., Deputy Chief Medical Director, Department of Medi- cine and Surgery, Veterans' Administration; accompanied by Robert Lind- sey, Director of Operations, DM&S; Audley Hendricks, Assistant General Counsel, VA; Robert A. Hincken, Assistant Inspector General for Investiga- tions, VA; and Ronald Cowles, Associate Director for Personnel Operation, Sherman, Richard, Esq., associate general counsel, Smith Kline Beckman Prepared statement of Dr. Sprague... MATERIAL SUBMITTED FOR THE RECORD Written committee questions and their response: POSSIBLE FRAUDULENT ACTIONS BY VA EMPLOYEES INVOLVED IN DRUG PROCUREMENTS OR RESEARCH THURSDAY, OCTOBER 17, 1985 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON HOSPITALS AND HEALTH CARE, COMMITTEE ON VETERANS' AFFAIRS, Washington, DC. The subcommittee met, pursuant to notice, at 9 a.m., in room 334, Cannon House Office Building, Hon. Bob Edgar (chairman of the subcommittee) presiding. Present: Representatives Edgar, Mollohan, Penny, Rowland of Georgia, Daschle, Hammerschmidt, Johnson, Ridge, Hendon, and Rowland of Connecticut. OPENING STATEMENT OF CHAIRMAN EDGAR Mr. EDGAR. The subcommittee will come to order. I want to welcome everyone here this morning and indicate to everyone that the subject matter we are going to deal with today is very important and somewhat controversial. But I think it is important for this subcommittee to clearly identify the facts and to understand what policy changes ought to take place, if any, within the VA. Let me be clear about the purpose of this hearing from the outset. We are not here today to be judge or jury. This is not a court of law. We are here as the subcommittee with oversight responsibilities for the activities of the Veterans' Administration's Department of Medicine and Surgery. We want to learn about certain serious allegations of misconduct against employees of the Veterans' Administration. We do not intend nor desire to hamper whatever legal processes may be ongoing or undertaken in this matter, but we cannot ignore the issues that accompany the allegations. The purpose of the hearing, then, is to receive testimony about the investigations which were initiated by the Veterans' Administration's own inspector general. We also wish to learn about the current practices and relationships established by the medical professionals and pharmaceutical firms to further the advances of the medical sciences. We will hear from the Veterans' Administration about the investigation of the alleged fraud and the laws and regulations governing the conduct of employees of the agency. We will hear from a representative of SmithKline Corp. about the IG's investigation and |