VA Provider Pay Modernization Act of 2016

To amend title 38, United States Code, to authorize the Secretary of Veterans Affairs to increase the maximum market pay of physicians and dentists in the Veterans Health Administration who work in health professional shortage areas, and for other purposes. 1. Short title This Act may be cited as the VA Provider Pay Modernization Act of 2016 2. Market pay for physicians and dentists in the Veterans Health Administration in health professional shortage areas Section 7431(c) of title 38, United States Code, is amended— (1) in paragraph (3)— (A) by striking The Subject to paragraph (5), the (B) by striking determined by the Secretary on a case-by-case basis the same for each physician or dentist with the same specialty or assignment in the same Veterans Integrated Service Network (2) in paragraph (5)— (A) by striking The Subject to subparagraph (C), the (B) by striking shall take may exceed the market pay generally available under paragraph (3) to a physician or dentist with the same specialty or assignment in the same Veterans Integrated Service Network by an amount not to exceed five percent of the total pay of such physician or dentist, taking (C) in subparagraph (C)— (i) by inserting (i) the health care labor market (ii) by striking all that follows dentist in the relevant health service area, as designated by the Secretary of Health and Human Services under section 5.2 of title 42, Code of Federal Regulations (42 C.F.R. 5.2); and (iii) by adding at the end the following new clause: (ii) whether the Secretary of Health and Human Services has designated under section 332 of the Public Health Service Act ( 42 U.S.C. 254e ; and (3) in paragraph (6), by striking 24 12 3. Basic pay parity Section 7403(h)(6) of title 38, United States Code, is amended— (1) by striking and (2) by striking the period at the end of subparagraph (B) and inserting ; and (3) by adding at the end the following new subparagraph: (C) create parity to the greatest extent practicable between the grades and annual rates of basic pay for employees of the Administration who perform similar duties in the same facility, regardless of time of service. .

Summary: VA Provider Pay Modernization Act of 2016 This bill provides that market pay (one of the three salary components of Veterans Health Administration [VHA] physicians and dentists) shall be the same for each physician or dentist with the same specialty or assignment in the same Integrated Service Network (VISN). The market pay of a physician or dentist may exceed the market pay generally available to a physician or dentist with the same specialty or assignment in the same VISN by up to 5%. Such amount shall take into account the pay in the relevant health service area, as designated by the Department of Health and Human Services. Market pay in a health professional shortage area for a physician's or dentist's specialty may exceed by up to 25% the market pay for a physician or dentist in a health service area with a specialty or assignment not relevant to the health professional shortage area. The VA shall: (1) evaluate the market pay of a physician or dentist every 12 months; and (2) in implementing a promotion system, create parity between the grades and annual rates of basic pay for VHA employees performing similar duties in the same facility, regardless of service time.