---
kind: "section"
citation: "38 U.S.C. § 1704A"
title: "38"
title_heading: "Veterans’ Benefits"
number: "1704A"
heading: "Independent assessments of health care delivery systems and management processes"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/38/1704A"
units:
  - "Part II — General Benefits"
  - "Chapter 17 — Hospital, Nursing Home, Domiciliary, and Medical Care"
  - "Subchapter I — General"
---

# §1704A. Independent assessments of health care delivery systems and management processes

- (a) **Independent Assessments.—**
  - (1) Not less frequently than once every 10 years, the [Secretary](/usc/38/101.md?p=1) shall enter into one or more contracts with a private sector entity or entities described in [subsection (d)](#d) to conduct an independent assessment of the [hospital care](/usc/38/1701.md?p=5), [medical services](/usc/38/1701.md?p=6), and other health care furnished by the [Department](/usc/38/101.md?p=1).
  - (2) Each assessment required under [paragraph (1)](#a-1) shall address each of the following:
    - (A) Current and projected demographics and unique health care needs of the patient population served by the [Department](/usc/38/101.md?p=1).
    - (B) The accuracy of models and forecasting methods used by the [Department](/usc/38/101.md?p=1) to project health care demand, including with respect to [veteran](/usc/38/1101.md?p=1) demographics, rates of use of health care furnished by the [Department](/usc/38/101.md?p=1), the inflation of health care costs, and such other factors as may be determined relevant by the [Secretary](/usc/38/101.md?p=1).
    - (C) The reliability and accuracy of models and forecasting methods used by the [Department](/usc/38/101.md?p=1) to project the budgetary needs of the [Veterans](/usc/38/1101.md?p=1) Health Administration and how such models and forecasting methods inform budgetary trends.
    - (D) The authorities and mechanisms under which the [Secretary](/usc/38/101.md?p=1) may furnish [hospital care](/usc/38/1701.md?p=5), [medical services](/usc/38/1701.md?p=6), and other health care at [facilities of the Department](/usc/38/1701.md?p=3) and [non-Department facilities](/usc/38/1701.md?p=4), including through Federal and private sector partners and at joint medical facilities, and the effect of such authorities and mechanisms on eligibility and access to care.
    - (E) The organization, workflow processes, and tools used by the [Department](/usc/38/101.md?p=1) to support clinical staffing, access to care, effective length-of-stay management and care transitions, positive patient experience, accurate documentation, and subsequent coding of inpatient services.
    - (F) The efforts of the [Department](/usc/38/101.md?p=1) to recruit and retain staff at levels necessary to carry out the functions of the [Veterans](/usc/38/1101.md?p=1) Health Administration and the process used by the [Department](/usc/38/101.md?p=1) to determine staffing levels necessary for such functions.
    - (G) The staffing level at each medical facility of the [Department](/usc/38/101.md?p=1) and the productivity of each health care provider at the medical facility, compared with health care industry performance metrics, which may include the following:
      - (i) An assessment of the case load of, and number of patients treated by, each health care provider at such medical facility during an average week.
      - (ii) An assessment of the time spent by each such health care provider on matters other than the case load of the health care provider, including time spent by the health care provider as follows:
        - (I) At a medical facility that is affiliated with the [Department](/usc/38/101.md?p=1).
        - (II) Conducting research.
        - (III) Training or supervising other health care professionals of the [Department](/usc/38/101.md?p=1).
      - (iii) An assessment of the complexity of health care conditions per patient treated by each health care provider at such medical facility during an average week.
    - (H) The information technology strategies of the [Department](/usc/38/101.md?p=1) with respect to furnishing and managing health care, including an identification of any weaknesses or opportunities with respect to the technology used by the [Department](/usc/38/101.md?p=1), especially those strategies with respect to clinical documentation of [hospital care](/usc/38/1701.md?p=5), [medical services](/usc/38/1701.md?p=6), and other health care, including any clinical images and associated textual reports, furnished by the [Department](/usc/38/101.md?p=1) in [facilities of the Department](/usc/38/1701.md?p=3) or [non-Department facilities](/usc/38/1701.md?p=4).
    - (I) Business processes of the [Veterans](/usc/38/1101.md?p=1) Health Administration, including processes relating to furnishing non-[Department](/usc/38/101.md?p=1) health care, insurance identification, third-party revenue collection, and vendor reimbursement, including an identification of mechanisms as follows:
      - (i) To avoid the payment of penalties to vendors.
      - (ii) To increase the collection of amounts owed to the [Department](/usc/38/101.md?p=1) for [hospital care](/usc/38/1701.md?p=5), [medical services](/usc/38/1701.md?p=6), or other health care provided by the [Department](/usc/38/101.md?p=1) for which reimbursement from a third party is authorized and to ensure that such amounts collected are accurate.
      - (iii) To increase the collection of any other amounts owed to the [Department](/usc/38/101.md?p=1) with respect to [hospital care](/usc/38/1701.md?p=5), [medical services](/usc/38/1701.md?p=6), or other health care and to ensure that such amounts collected are accurate.
      - (iv) To increase the accuracy and timeliness of payments by the [Department](/usc/38/101.md?p=1) to vendors and providers.
      - (v) To reduce expenditures while improving the quality of care furnished.
    - (J) The purchase, distribution, and use of pharmaceuticals, medical and surgical supplies, medical devices, and health care-related services by the [Department](/usc/38/101.md?p=1), including the following:
      - (i) The prices paid for, standardization of, and use by, the [Department](/usc/38/101.md?p=1) with respect to the following:
        - (I) Pharmaceuticals.
        - (II) Medical and surgical supplies.
        - (III) Medical devices.
      - (ii) The use by the [Department](/usc/38/101.md?p=1) of group purchasing arrangements to purchase pharmaceuticals, medical and surgical supplies, medical devices, and health care-related services.
      - (iii) The strategy and systems used by the [Department](/usc/38/101.md?p=1) to distribute pharmaceuticals, medical and surgical supplies, medical devices, and health care-related services to [Veterans](/usc/38/1101.md?p=1) Integrated Service Networks and medical [facilities of the Department](/usc/38/1701.md?p=3).
    - (K) The competency of [Department](/usc/38/101.md?p=1) leadership with respect to culture, accountability, reform readiness, leadership development, physician alignment, employee engagement, succession planning, and performance management.
    - (L) The effectiveness of the authorities and programs of the [Department](/usc/38/101.md?p=1) to educate and train health personnel pursuant to [section 7302 of this title](/usc/38/7302.md).
    - (M) The conduct of medical and prosthetic research of the [Department](/usc/38/101.md?p=1).
    - (N) The provision of assistance by the [Department](/usc/38/101.md?p=1) to Federal agencies and personnel involved in responding to a disaster or emergency.
    - (O) Such additional matters as may be determined relevant by the [Secretary](/usc/38/101.md?p=1).
- (b) **Timing.—** The private sector entity or entities carrying out an assessment pursuant to [subsection (a)](#a) shall complete such assessment not later than 18 months after entering into the contract described in such paragraph.
- (c) **Leveraging of Existing Data and Contracts.—** To the extent practicable, the private sector entity or entities carrying out an assessment pursuant to [subsection (a)](#a) shall—
  - (1) make maximum use of existing data that has been compiled by the [Department](/usc/38/101.md?p=1), compiled for the [Department](/usc/38/101.md?p=1), or purchased by the [Department](/usc/38/101.md?p=1), including data that has been collected for—
    - (A) the performance of quadrennial market assessments under [section 7330C of this title](/usc/38/7330C.md);
    - (B) the quarterly publication of information on staffing and vacancies with respect to the [Veterans](/usc/38/1101.md?p=1) Health Administration pursuant to section 505 of the VA MISSION Act of 2018 (Public Law 115–182; [38 U.S.C. 301](/usc/38/301.md) note); and
    - (C) the conduct of annual audits pursuant to [section 3102](/usc/38/3102.md) of the Johnny Isakson and David P. Roe, M.D. [Veterans](/usc/38/1101.md?p=1) Health Care and Benefits Improvement Act of 2020 (Public Law 116–315; [38 U.S.C. 1701](/usc/38/1701.md) note).
  - (2) maximize the use of existing contracts and other agreements of the [Department](/usc/38/101.md?p=1) for studies, analysis, data collection, or research in order to efficiently fulfill the requirements of this section.
- (d) **Private Sector Entities Described.—** A private sector entity described in this subsection is a private entity that—
  - (1) has experience and proven outcomes in optimizing the performance of national health care delivery systems, including the [Veterans](/usc/38/1101.md?p=1) Health Administration, other federal health care systems, and systems in the private, non-profit, or public health care sector;
  - (2) specializes in implementing large-scale organizational and cultural transformations, especially with respect to health care delivery systems; and
  - (3) is not currently under contract with the [Department](/usc/38/101.md?p=1) to provide direct or indirect patient care or related clinical care services or supplies under the laws administered by the [Secretary](/usc/38/101.md?p=1).
- (e) **Program Integrator.—**
  - (1) If the [Secretary](/usc/38/101.md?p=1) enters into contracts with more than one private sector entity under [subsection (a)](#a) with respect to a single assessment under such subsection, the [Secretary](/usc/38/101.md?p=1) shall designate one such entity as the program integrator.
  - (2) The program integrator designated pursuant to [paragraph (1)](#e-1) shall be responsible for coordinating the outcomes of the assessments conducted by the private sector entities pursuant to such contracts.
- (f) **Reports.—**
  - (1)
    - (A) Not later than 60 days after completing an assessment pursuant to [subsection (a)](#a), the private sector entity or entities carrying out such assessment shall submit to the [Secretary](/usc/38/101.md?p=1) and the Committee on [Veterans](/usc/38/1101.md?p=1)’ Affairs of the Senate and the Committee on [Veterans](/usc/38/1101.md?p=1)’ Affairs of the House of Representatives a report on the findings and recommendations of the private sector entity or entities with respect to such assessment.
    - (B) Each report under [subparagraph (A)](#f-1-A) with respect to an assessment shall include an identification of the following:
      - (i) Any changes with respect to the matters included in such assessment since the date that is the later of the following:
        - (I) The date on which the independent assessment under section 201 of the [Veterans](/usc/38/1101.md?p=1) Access, Choice, and Accountability Act of 2014 (Public Law 113–146; [38 U.S.C. 1701](/usc/38/1701.md) note) was completed.
        - (II) The date on which the last assessment under [subsection (a)](#a) was completed.
      - (ii) Any recommendations regarding matters to be covered by subsequent assessments under [subsection (a)](#a), including any additional matters to include for assessment or previously assessed matters to exclude.
  - (2) Not later than 30 days after receiving a report under [paragraph (1)](#f-1), the [Secretary](/usc/38/101.md?p=1) shall publish such report in the Federal Register and on a publicly accessible internet website of the [Department](/usc/38/101.md?p=1).
  - (3) Not later than 90 days after receiving a report under [paragraph (1)](#f-1), the [Secretary](/usc/38/101.md?p=1) shall submit to the Committee on [Veterans](/usc/38/1101.md?p=1)’ Affairs of the Senate and the Committee on [Veterans](/usc/38/1101.md?p=1)’ Affairs of the House of Representatives a report outlining the feasibility and advisability of implementing the recommendations made by the private sector entity or entities in such report received, including an identification of the timeline, cost, and any legislative authorities necessary for such implementation.
- (g) **Sunset.—** The requirement to enter into contracts under [subsection (a)](#a) shall terminate on December 31, 2055.

## Source credit

(Added Pub. L. 117–328, div. U, title I, § 194(a), Dec. 29, 2022, 136 Stat. 5440.)

## Notes

### Statutory Notes and Related Subsidiaries

### Deadline for Initial Assessment

Pub. L. 117–328, div. U, title I, § 194(c), Dec. 29, 2022, 136 Stat. 5444, provided that: “The initial assessment under section 1704A of title 38, United States Code, as added by subsection (a), shall be completed by not later than December 31, 2025.”