Introduction VA hospitals across the United States have a long-standing history of providing care and services to the country’s veterans and their families. Currently, the US Department for Veterans Affairs, which is the umbrella body that undertakes strategic planning for all VA facilities, maintains an integrated healthcare system that aims to provide the highest quality of services to clients through its 153 hospitals and 773 community-based out-patient clinics (CBOC) across the U.S (U.S. Department for Veterans Affairs, 2011, p. 4). However, the current issues in the healthcare sector and operating environment including the increasing veteran population and the challenging external environment call for significant changes to address the current challenges and seek opportunities for continuous improvement. In this essay, the strategic planning for VA hospitals as outlined by the US Department for Veterans Affairs is assessed besides reviewing the major challenges and opportunities for improvement as highlighted by the Department’s Office of Inspector General (OIG). Planning for VA hospitals To achieve different strategic goals and objectives through its facilities, the Department draws a long-term plan that covers about five years. Currently, the Department works within the FY 2011-2015 strategic plan, which includes three guiding principles, four strategic goals, three integrated objectives, 14 integrated strategies, and 16 major initiatives. Here, the FY 2011-2015 strategic plan notes that the Department’s guiding principles include people-centric, results-driven, and forward-looking. Taken together, the principles provide the means through which VA medical facilities direct available resources to Veterans and their families while taking note that the services offered will be measured relative to positive accomplishments rather than empty promises. Besides, the principles guide the VA facilities to plan for available resources effectively while seeking alternative sources to satisfy the ever-increasing Veteran populations (U.S. Department for Veteran Affairs, 2011, pp. 19-21). Subsequently, the Department’s strategic goals and priorities for 2011-2015 include improving quality and accessibility of services, increasing client satisfaction, raising readiness to serve and protect clients at any time, and improving the management and service systems to achieve customer satisfaction and improved performance. Conversely, to achieve the goals, the Department focuses on harnessing talent and investing in human capital relative to needs, experience, and expectations of the clients as outlined in the Department’s integrated objectives. Finally, the strategic goals and objectives culminate into various strategic initiatives including eliminating veteran homelessness, improving veteran mental health, transforming human capital management, and ensuring healthcare efficiency among others (U.S. Department for Veterans Affairs, 2011, pp. 21-25). Overall, the FY 2011-2015 strategic plan is a clear indication that the Department seeks to maintain its status as one of the best integrated healthcare provider in the U.S. Major challenges facing VA hospitals According to the OIG report 2010,