What's interesting to me is that these budget cuts are coming at a time when the VA is also trying to implement a new Electronic Health Record (EHR) system (Oracle CERNER) which is having substantial issues with rollouts (see the Google News page for Oracle CERNER or read the transcripts from the congressional hearings about it).

This could become a two pronged problem where you have fewer people to provide care while they are trying to implement a new EHR which results in a decrease in productivity because of the need of learning a new system.