ROI IN ACTION
NMEDA’s VA Past Due Invoice Program Starts to Show Results By Amy Schoppman NMEDA DIRECTOR OF GOVERNMENT RELATIONS
S
everal years ago, NMEDA
Version 1.0 of NMEDA’s PDI Program
days (nearly 6.5 years) past due—that
began working with the
led to sporadic successes, but we
Members of Congress were visibly
Department of Veterans Affairs
weren’t satisfied with the scope
shaking their heads from the dais.
(VA) on an informal Past Due Invoice
or magnitude of the results. The
Program (“PDI Program”). I won’t
issue was elevated when NMEDA’s
bury the lede—the PDI Program has
then-President Sam Cook testified
produced results: over $450,000 PDIs
before the U.S. House Committee
were resolved in 2019 Q4 and over
on Veterans’ Affairs (HVAC) during
$1,000,000 PDIs were paid in 2020
a hearing entitled, “Assessing VA’s
Q1. That said, history helps us connect with the past and understand the present (plus I doubt I can get away with a one-paragraph article…), so please take your seat for “PDIs 101.” Class is now in session. NMEDA’s PDI Program was developed following a meeting between VA Central Office staff and NMEDA representatives. We had identified the prompt payment of VA invoices as one of several challenges that our members were experiencing with the administration of the Auto Grant and the Automobile Adaptive Equipment (AAE) Program. The Veterans Health Administration (VHA) and Veterans Benefit Administration (VBA) had an undeniable history of delayed and sometimes nonexistent vendor reimbursement, and both parties agreed to establish an informal PDI Program to improve the situation. Simple, right? Wrong—nothing is ever simple when it comes to the federal government [tap of my ruler on your knuckles].
I don’t put much faith in federal agency efficiency, so I was unsurprised but nonetheless exasperated when, years later, little had changed: NMEDA and
“
other witnesses had (correctly)
Vendors.” In news sure to shock
while certain VA Medical Centers
absolutely nobody reading this,
(VAMCs) and clinics notorious for
Sam testified that VA’s abilities in
late payment scrambled under the
this arena were (paraphrasing) “not
pressure to resolve outstanding
good.” In fact, VA not was so “not
invoices and avoid further scrutiny
good” at prompt payment—which
of their payment practices, the
is defined as payment of a vendor’s
“fix” was temporary. VA had done
valid and proper invoice within 30
little to meaningfully reform its
days of receipt by the responsible
payment practices, and NMEDA
federal agency—that, over a five-year
members across the country were
period, NMEDA dealers reported
still struggling to resolve PDIs.
nearly 4,000 PDIs totaling over
Meanwhile, the quality, safety, and
$30,000,000 and averaging 271 days
timeliness of disabled veterans’
past due (with 63% of invoices 180+
automotive mobility solutions were
days late and 16% of invoices 365+
being jeopardized as QAP-accredited
days late). Procedural HVAC Health
dealers began to reconsider working
Subcommittee hearings don’t usually
with VA, or reluctantly realized that
elicit gasps, but one invoice managed
they could simply no longer trust
to do so: it was so humiliating—2,368
or afford to work with VA at all. At
Ability to Promptly Pay Third-Party
roasted VA at a public hearing and,
Procedural HVAC Health Subcommittee hearings don’t usually elicit gasps, but one invoice managed to do so: it was so humiliating—2,368 days (nearly 6.5 years) past due...”
