Posted on Tue, May. 01, 2007

The VA paid bonuses of more than $335,000 to some of its top N.C. hospital managers during years when they received reports of poor patient care and suspicious deaths.

Executives at the Salisbury veterans hospital were rewarded with bonuses in 2004 and 2005, as VA officials investigated unexpected deaths.

Regional VA managers in Durham also received bonuses during that time. And they received bonuses as the Asheville veterans hospital struggled with staffing shortages that investigators found caused poor care. The Asheville nursing home unit also had been ordered in 2004 to suspend admissions after a patient died.

"It's stunning," said Sen. Patty Murray, a Washington Democrat who serves on the Senate Committee on Veterans' Affairs. Murray told the Observer on Monday that she will ask the VA to explain why the bonuses were awarded.

Department of Veterans Affairs officials have said both hospitals made changes and improved care.

The Observer requested bonus information for regional and Salisbury VA hospital officials for 2000 through 2006. That April 17 request came two days before a congressional hearing about the hospital's problems. The hearing followed Observer stories about multiple accounts of poor care at the Salisbury hospital, the main facility for Charlotte-area veterans.

The hospitals in Asheville and Salisbury are among the eight overseen by the VA regional office. The region serves veterans statewide and in Virginia and parts of West Virginia.

VA officials acknowledged but didn't respond to questions Monday about how bonuses are calculated, why they were paid during times the agency's investigators found problems and who authorized payments. Private companies often pay bonuses to attract, retain and reward key employees.

Daniel Hoffmann, the regional director, has said senior management bonuses are based on a "three-part evaluation process." Performance measures include quality of care.

Hoffmann received the largest bonus payments, including more than $29,000 in 2004, the year VA officials began investigating reports of deaths at the hospitals.

In 2005, bonuses tallied nearly $80,000, the largest total paid in years reviewed. That year, VA investigators concluded both hospitals provided poor care.

Dr. Sidney Steinberg is Salisbury's chief of staff, one of the hospital's top three posts. Steinberg, a surgeon, joined the hospital in 2001 and has held the chief's title since 2003.

He received a $5,000 bonus in 2004, less than two weeks before leading an executive meeting on an "unanticipated post operative death." In 2005, Steinberg's bonus was $12,500. Last year, he didn't receive a bonus, according to the VA, which gave no explanation for payment changes.

In January, he and the associate director, James Robinson, each received $5,000.

"We have made significant progress in the past few years ... " Steinberg said in an e-mail Monday, responding to a request for comment. "I intend to see that progress continue."

-- Staff writer Peter Smolowitz contributed.

-- Stella Hopkins: 704-358-5173