VA denies trying to cut costs by reducing PTSD diagnoses.

Norma Perez, a VA psychologist who wrote an e-mail discouraging diagnosing veterans with post-trauamtic stress disorder, says she did not make the suggestion out of financial concerns. “My intent was unequivocally to improve the quality of care our veterans received,” she writes, in prepared testimony for tomorrow’s Senate Veterans’ Affairs Committee hearing. Her May 1, 2008 e-mail warned against “compensation seeking veterans,” and advised diagnoses of “adjustment disorder.” The less severe diagnosis “could save the VA millions of dollars in disability payouts,” the AP reports.