I 
114TH CONGRESS 
1ST SESSION 
H. R. 502 
To establish a pilot program to improve the management and accountability 
within the Veterans Health Administration of the Department of Vet-
erans Affairs, to provide oversight of the Veterans Health Administration, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 22, 2015 
Mr. KILMER (for himself, Mr. CARNEY, and Mr. CUELLAR) introduced the fol-
lowing bill; which was referred to the Committee on Veterans’ Affairs, 
and in addition to the Committee on the Budget, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To establish a pilot program to improve the management 
and accountability within the Veterans Health Adminis-
tration of the Department of Veterans Affairs, to provide 
oversight of the Veterans Health Administration, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Veterans Health Ad-
ministration Management Improvement Act’’. 
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SEC. 2. COMPTROLLER GENERAL MANAGEMENT REVIEW 
OF VETERANS HEALTH ADMINISTRATION. 
(a) MANAGEMENT REVIEW.— 
(1) IN GENERAL.—During the five-year period 
beginning on the date of the enactment of this Act, 
the Comptroller General of the United States shall 
conduct a management review of the Veterans 
Health Administration of the Department of Vet-
erans Affairs. 
(2) MATTERS
INCLUDED.—The management 
review under paragraph (1) shall include a review, 
with respect to the Veterans Health Administration, 
of the following: 
(A) The management structure, including 
the roles and responsibilities among the various 
organizational components (local facilities, re-
gional networks, and the central office). 
(B) The oversight of core functions, includ-
ing the extent to which lines of accountability 
are clearly delineated. 
(C) The evaluation plan, operations, and 
capacity to implement results-based strategic 
planning. 
(D) The extent to which contractors are 
used and monitored to support core manage-
ment functions. 
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(E) Internal communication mechanisms, 
including expectations for communications, that 
support the mission. 
(F) The setting of priorities and the moni-
toring of such priorities. 
(G) Budgeting and resource allocation 
processes. 
(H) Workforce planning. 
(I) Human capital processes, including 
training activities, to ensure timely hiring and 
effective retention of a qualified workforce. 
(J) Information technology to support core 
functions and activities. 
(K) How each of the matters described in 
subparagraphs (A) through (J) may differ for 
rural medical facilities of the Department of 
Veterans Affairs. 
(L) Incentives, including any perverse in-
centives, affecting employee actions, quality of 
care, and the provision of services. 
(M) Insights from employees and employee 
representatives about the work environment and 
the level of engagement of such employees as 
can be derived from the results of the annual 
Federal employee survey and other internal sur-
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veys administered by the Secretary of Veterans 
Affairs. 
(N) Insights on the findings of the Comp-
troller General from veteran service organiza-
tions, organizations representing employees of 
the Veterans Health Administration, other 
stakeholders, and the Management and Ac-
countability Ombudsman described in section 
312B of title 38, United States Code, as added 
by section 4. 
(b) REPORTS.—Not later than one year after the date 
of the enactment of this Act, and annually thereafter for 
a four-year period, the Comptroller General shall submit 
to Congress one or more reports that include— 
(1) the matters reviewed under subsection 
(a)(1); and 
(2) recommendations of the Comptroller Gen-
eral based on such matters. 
SEC. 3. PILOT PROGRAM TO IMPROVE MANAGEMENT AND 
ACCOUNTABILITY OF VETERANS HEALTH AD-
MINISTRATION. 
(a) ESTABLISHMENT.—The Secretary of Veterans 
Affairs shall establish a pilot program to improve the man-
agement and accountability within the Veterans Health 
Administration. 
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(b) GOALS OF PILOT PROGRAM.—The Secretary shall 
carry out the pilot program under subsection (a) in a man-
ner that ensures that— 
(1) the employees of the Veterans Health Ad-
ministration have an opportunity to learn, imple-
ment, and identify successful means of advancing 
the management of the Veterans Health Administra-
tion and the delivery of care and services; and 
(2) the management and delivery of care and 
services at medical facilities of the Department is 
improved by implementing the recommendations of 
the Comptroller General of the United States based 
on the management review conducted under section 
2, and any other appropriate recommendations, with 
respect to the planning and evaluation capabilities of 
the Veterans Health Administration. 
(c) APPLICATION OF CERTAIN LAWS DURING PILOT 
PROGRAM.— 
(1) APPLICATION OF PERFORMANCE PLAN RE-
QUIREMENTS.—During the period in which the Sec-
retary carries out the pilot program under sub-
section (a), the Secretary shall carry out section 
1115(b) of title 31, United States Code, as follows: 
(A) In paragraph (2), by substituting ‘‘, 
unless authorized to be in an alternative form 
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under subsection (c), and situate each goal in 
the context of its own logic modeling of how the 
operations and activities of the agency, in co-
ordination with any significant operations and 
activities from external entities, will contribute 
toward achieving the goals and responsibilities 
of the agency;’’ for ‘‘unless authorized to be in 
an alternative form under subsection (c);’’. 
(B) By including in the agency perform-
ance plan described in such section 1115(b), for 
each performance goal covered by the plan, an 
identification and assessment of the risks of 
creating new, or perpetuating existing, perverse 
incentives, and strategies for risk assessment, 
monitoring, and mitigation, using a suitable 
risk management approach. 
(2) APPLICATION OF PERFORMANCE REPORT-
ING REQUIREMENTS.—During the period in which 
the Secretary carries out the pilot program under 
subsection (a), the Secretary shall carry out sub-
section (c) of section 1116 of title 31, United States 
Code, by including in the update required by such 
subsection statistical information regarding the Vet-
erans Health Administration that— 
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(A) is useful to multiple stakeholders for 
internal management and external oversight; 
and 
(B) provides insight into how programs are 
planned, financed, and managed, regarding— 
(i) the population of veterans, impor-
tant subgroups thereof, and the status of 
such veterans; 
(ii) the capacity of the operations of 
the Veterans Health Administration under 
enacted resource levels, listed by important 
subcategories as appropriate; and 
(iii) the workload of the Veterans 
Health Administration, listed by important 
subcategories as appropriate. 
(3) APPLICATION OF FUNCTIONS OF CHIEF OP-
ERATING OFFICER.—During the period in which the 
Secretary carries out the pilot program under sub-
section (a), the Secretary shall carry out section 
1123(b)(1) of title 31, United States Code, by sub-
stituting ‘‘strategic and performance planning, 
measurement, evaluation, analysis, regular assess-
ment of progress, risk management (including the 
risks of perverse incentives), and use of performance 
information to improve the results achieved’’ for 
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