Is Fixing the VA Too Big a Task for Ex-P&G CEO?

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June 30 (Bloomberg) -- Bloomberg’s Peter Cook reports that President Barack Obama has selected former Proctor & Gamble Chief Executive Officer Bob McDonald to head the troubled Department of Veterans Affairs. He speaks on “Bloomberg Surveillance.”

Long patient waiting times.

Joining us now is peter cook.

Peter, bob mcdonald comes to the front of the line because he is the ceo-type.

The government was weighing between folks in the military, folks in the hospital industry, and the ceo types.

Why did they go with the former ceo?

First of all, his name is a surprise to many because he had not been mentioned previously.

The reason the president is turning to bob mcdonald is because this is someone with significant management experience.

33 years at procter & gamble, started entry-level him arose all the way to ceo and effectively the white house is saying the problems that the v.a., the corrosive environment they talked about in terms of management problems not only in phoenix but across the country, they need to be solved by someone with management experience and that is why bob mcdonald is the right guy for the job.

They highlight he does have ties to the u.s. military.

He served five years in the u.s. army, a west point graduate.

He had an uncle who has been treated at the v.a., vietnam veteran.

He has ties to it.

But he is there because he is management experience.

Peter, i'm going to go with the run rate of 278,000 employees.

Something in the vicinity at the v.a. can anyone manage this bureaucracy?

It certainly is going to be a challenge.

It is a giant organization.

Roughly 278,000 employees, more than twice as many when he was at procter & gamble.

$600 billion budget and a long growing list of patients thanks to not only the retiring baby boomer generation, those in their 70's who served in vietnam or earlier, but now you have all these iraq and afghanistan veterans who have very serious medical issues, mental health care issues just to name a few.

This is a management challenge and that is why he is going to someone who is had to run a very large organization.

Peter, what is the timeline for mr.

Mcdonnell to effectively lay out his plan for the v.a. administration?

Next wednesday.

I would not expect to hear a specific land until he gets confirmed.

This is washington and midterm election year.

He will be nominated formally today by the president and then he has to go through the confirmation process.

I assume we will hear few words from mr.

Mcdonald when he is dominated by the president, but he has to get confirmed.

It doesn't seem like it will be huge challenge, but this is washington.

He has interviewed more to republicans in the past than democrats, so that might help them in the confirmation process.

His biggest challenge may be liberal democrats who aren't convinced he's the right guy for the job.

Thank you, peter cook.

Incredibly busy week for economics.

Economics may determine janet yellen's summer.

Pushing against the gloom crew.

Repeat or stage.

Report will indicate ash job report will indicate better times to come.

You resiliently have an optimistic.

What did the bloom crew get wrong?

I think you are too fixated on bad weather between january and march and not fixated enough on what the rapid expansion of credit that we're seeing is going to mean for the economy and also this affective quantitative easing which is still in place in which janet yellen will tell you will continue with the growth going forward.

The risk is she is right and when the fed actually goes to exit, they're sitting on a four

This text has been automatically generated. It may not be 100% accurate.


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