I 

109TH CONGRESS 

1ST SESSION H. R. 2988 

To direct the Secretary of Veterans Affairs to conduct a demonstration 

project for the improvement of business practices of the Veterans Health 

Administration. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 20, 2005 

Mr. BILIRAKIS (for himself, Mr. BUYER, and Mr. EVERETT) introduced the 

following bill; which was referred to the Committee on Veterans’ Affairs 

A BILL 

To direct the Secretary of Veterans Affairs to conduct a 

demonstration project for the improvement of business 

practices of the Veterans Health Administration. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Veterans Medical Care 

5 Revenue Enhancement Act of 2005’’. 

6 SEC. 2. DEMONSTRATION PROJECT TO IMPROVE BUSINESS 

7 PRACTICES OF VETERANS HEALTH ADMINIS8 TRATION. 

9 (a) DEMONSTRATION PROJECT REQUIRED.— 
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1 (1) IN GENERAL.—The Secretary of Veterans 

2 Affairs shall conduct a demonstration project under 

3 this section for the improvement of business prac4 tices of the Veterans Health Administration. 

5 (2) PERFORMANCE-BASED CONTRACT.— To 

6 carry out the demonstration project, the Secretary 

7 shall enter into a performance-based contract for a 

8 contractor to carry out the functions specified in 

9 subsection (e). 

10 (3) COST LIMITATION.—The total amount paid 

11 to the contractor under the contract may not exceed 

12 $10,000,000. 

13 (b) COMMENCEMENT AND DURATION OF PROJECT.— 

14 The demonstration project shall be conducted during the 

15 two-year period beginning on the first day of the first 

16 month beginning more than 120 days after the date of 

17 the enactment of this Act. 

18 (c) SITES FOR CONDUCT OF PROJECT.—The Sec19 retary shall conduct the demonstration project at two 

20 medical centers of the Veterans Health Administration 

21 within the same service area (referred to as a Veterans 

22 Integrated Service Network) of the Veterans Health Ad23 ministration. The two medical centers at which the project 

24 is conducted shall be selected by the Secretary from among 

25 medical centers that are located in those services areas 
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1 of the Veterans Health Administration that the Secretary 

2 determines have relatively low rates of recovery or collec3 tion of indebtedness from third-party payors under section 

4 1729 of title 38, United States Code. 

5 (d) SELECTION OF CONTRACTOR.—The Secretary 

6 shall carry out the process for selection of the contractor 

7 for the demonstration project so that the contractor to 

8 perform the contract is selected, and the contract is 

9 awarded, not later than three months after the date of 

10 the enactment of this Act. The contractor shall be an enti11 ty or organization that has significant experience in the 

12 administrative processing of health care charges and 

13 claims. 

14 (e) FUNCTIONS OF CONTRACTOR.—The Secretary 

15 shall provide in the contract for the following functions 

16 of the contractor with respect to each facility at which the 

17 demonstration project is conducted: 

18 (1) Establishment of a plan to standardize and 

19 coordinate all activities related to billing for health20 care items and services furnished to veterans for 

21 non-service-connected disabilities. 

22 (2) Reengineering of the business processes for 

23 billing and accounts receivable activities. 
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1 (3) Application of commercial-industry stand2 ards for measures of access, timeliness, and per3 formance. 

4 (4) Establishment of a database containing 

5 third-party payor information for veterans receiving 

6 health care and services. 

7 (5) Such other requirements with respect to 

8 business practices as the Secretary may specify. 

9 (f) VHA PROJECT MANAGER.—As part of the dem10 onstration project, the Secretary shall ensure that a Vet11 erans Health Administration employee is designated to be 

12 the full-time project manager for the project and that such 

13 employee’s duty station is at one of the medical centers 

14 at which the project is conducted, with provision for visits 

15 as needed to the other medical center at which the project 

16 is conducted. 

17 (g) EMPLOYEE PROTECTION.—The Secretary shall 

18 administer the demonstration project so that during the 

19 period of the conduct of the demonstration project there 

20 is no reduction in full-time equivalent employees of the 

21 Department of Veterans Affairs at the medical centers at 

22 which the project is conducted that is attributable to the 

23 conduct of the demonstration project. 

24 (h) REPORTS TO CONGRESS.— 
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1 (1) PERIODIC PROGRESS REPORTS ON PROJECT

2 IMPLEMENTATION.— 

3 (A) REPORTS REQUIRED.—The Secretary 

4 shall submit to Congress progress reports on 

5 the implementation of the demonstration 

6 project. 

7 (B) TIME FOR PROGRESS REPORTS.— 

8 Such reports shall be submitted as expeditiously 

9 as feasible after the end of— 

10 (i) the 60-day period, the 90-day pe11 riod, and the 180-day period beginning on 

12 the date of the enactment of this Act; and 

13 (ii) the 60-day period, the 90-day pe14 riod, and the 180-day period beginning on 

15 the date of the award of the contract 

16 under subsection (d). 

17 (C) MATTER TO BE INCLUDED.—Each re18 port under this paragraph shall set out the 

19 progress to date on the implementation of the 

20 demonstration project, including— 

21 (i) before the contractor has been se22 lected, progress toward selection of the 

23 contractor (identified by the steps in the 

24 acquisition process that have been accom-
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1 plished and that remain to be accom2 plished); and 

3 (ii) after the contractor has been se4 lected, the contractor’s progress in initi5 ating and carrying out the demonstration 

6 project in accordance with the require7 ments of this section. 

8 (2) INTERIM REPORTS ON PROJECT OPER9 ATION.—After the completion of the first 12 months, 

10 and after the completion of the first 18 months, of 

11 the demonstration project, the Secretary shall sub12 mit to Congress an interim report on the operation 

13 of the demonstration project to that date. Each such 

14 report shall include the following: 

15 (A) The assessment of the Secretary as to 

16 whether the rate of recovery or collection of in17 debtedness owed the United States from third18 party payors has improved by reason of the 

19 project. 

20 (B) The assessment of the Secretary as to 

21 the performance of the contractor. 

22 (C) Estimated cost savings to the Depart23 ment as a result of the project. 

24 (3) FINAL REPORT.—After the conclusion of 

25 the demonstration project, the Secretary shall sub-
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1 mit to Congress a final report on the project. The 

2 Secretary shall include in that report the matters 

3 specified in paragraph (2) and the Secretary’s rec4 ommendation for implementing on a permanent 

5 basis the recovery or collection system tested in the 

6 demonstration project and expanding the demonstra7 tion project to other facilities of the Veterans Health 

8 Administration. The final report shall be submitted 

9 not later than 90 days after the conclusion of the 

10 demonstration project. 

11 (i) COMPTROLLER GENERAL REVIEW AND RE12 PORTS.— 

13 (1) REVIEW.—The Comptroller General shall 

14 review the demonstration project on an ongoing 

15 basis. 

16 (2) REPORTS.—The Comptroller General shall 

17 submit to Congress a report on the Comptroller 

18 General’s findings and recommendations concerning 

19 the demonstration project— 

20 (A) after the operation of the demonstra21 tion project for a period of one year; and 

22 (B) after the operation of the demonstra23 tion project for a period of two years. 

24 (j) AUTHORIZATION OF APPROPRIATIONS.—There is 

25 authorized to be appropriated to the Secretary of Veterans 
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1 Affairs for the conduct of the demonstration project under 

2 this section the sum of $10,000,000. 

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