VA chooses contractor for Butler VA health center
The Department of Veterans Affairs could pay more to rent a new health care facility in Butler County than under an old deal that collapsed when the VA inspector general raised questions about the developer.
The VA announced Friday that it agreed to a 20-year lease with Cambridge Healthcare Solutions PA LP of Vienna, Va. The firm will oversee construction of a 168,000-square-foot center off North Duffy Road in Center, about 1½ miles from the main VA campus along New Castle Road in Butler Township.
The VA said it will pay Cambridge Healthcare Solutions $8.4 million a year in rent after a “rent abatement period” of unspecified length. Cambridge officials declined comment. The VA did not return requests for comment.
The VA's old agreement with Westar Development Co. of Aurora, Ohio, to build a $75 million center adjacent to the Butler campus would have cost taxpayers an average $7.6 million a year in rent.
U.S. Rep. Mike Kelly of Butler has been critical of how the VA handled the project and how the original contract went to Westar in 2012. The Republican said Friday that he was disappointed he had to learn from a reporter, and not the VA, that Cambridge landed the latest contract.
“Because of the history of the project, I think it brings up certain questions,” Kelly said. “There are genuine concerns about the taxpayer investment and the ability to handle veterans' health issues.”
The company is among subsidiaries of Cambridge, a real estate firm based in Vienna. One subsidiary, Childress Klein-Cambridge Healthcare Solutions of Naples, Fla., is building a $150 million VA health care facility in Charlotte, scheduled to open in 2016, according to the company's website.
The VA on Aug. 9, 2013, canceled its lease with Westar. The VA Inspector General's Office became concerned that Westar misrepresented itself, claiming that it was veteran-owned when it's not, and that it may have had ties to a businessman sentenced on federal charges of racketeering, bribery and fraud unrelated to the Butler project.
Westar officials denied any wrongdoing.
Cambridge proposed the North Duffy Road site when the VA sought bids in 2012 for the contract that eventually went to Westar, according to Center supervisors.
The site constitutes about 45 acres and is part of a farm owned by the Dale Herold family, said Andrew Erie, a Center commissioner. The Herold family did not return messages seeking comment.
“It will bring a lot of jobs for Center Township. We have been hoping to get this project for a while. We have done a lot of work,” Erie said.
The township agreed to pay for and build turning lanes on North Duffy, Erie said. He did not give a cost.
The VA did not provide a start date for the project, though it said in a statement that construction could take 31 months.
The facility will include primary care, specialty care, dental, lab, pathology, radiology, mental health, ancillary and diagnostic services, the VA said.
“This is a milestone that renews VA's commitment to providing high-quality medical services to our veterans and preserves our presence in the Butler community,” said John Gennaro, VA Butler Healthcare's director.
While the new facility is being built, health care services will continue uninterrupted at the main campus and at five outpatient clinics in Butler, Armstrong and surrounding counties, the VA said.
Staff writer Rick Wills contributed to this report. Bill Vidonic is a staff writer for Trib Total Media. He can be reached at 412-380-5621 or bvidonic@tribweb.com.
