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. 
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 Medical Care 
Revenue Enhancement Act of 2005’’. 
SEC. 2. DEMONSTRATION PROJECT TO IMPROVE BUSINESS 
PRACTICES OF VETERANS HEALTH ADMINIS-
TRATION. 
(a) DEMONSTRATION PROJECT REQUIRED.—
(1) IN GENERAL.—The Secretary of Veterans 
Affairs shall conduct a demonstration project under 
this section for the improvement of business prac-
tices of the Veterans Health Administration. 
(2) PERFORMANCE-BASED
CONTRACT.— To 
carry out the demonstration project, the Secretary 
shall enter into a performance-based contract for a 
contractor to carry out the functions specified in 
subsection (e). 
(3) COST LIMITATION.—The total amount paid 
to the contractor under the contract may not exceed 
$10,000,000. 
(b) COMMENCEMENT AND DURATION OF PROJECT.— 
The demonstration project shall be conducted during the 
two-year period beginning on the first day of the first 
month beginning more than 120 days after the date of 
the enactment of this Act. 
(c) SITES FOR CONDUCT OF PROJECT.—The Sec-
retary shall conduct the demonstration project at two 
medical centers of the Veterans Health Administration 
within the same service area (referred to as a Veterans 
Integrated Service Network) of the Veterans Health Ad-
ministration. The two medical centers at which the project 
is conducted shall be selected by the Secretary from among 
medical centers that are located in those services areas
of the Veterans Health Administration that the Secretary 
determines have relatively low rates of recovery or collec-
tion of indebtedness from third-party payors under section 
1729 of title 38, United States Code. 
(d) SELECTION
OF CONTRACTOR.—The Secretary 
shall carry out the process for selection of the contractor 
for the demonstration project so that the contractor to 
perform the contract is selected, and the contract is 
awarded, not later than three months after the date of 
the enactment of this Act. The contractor shall be an enti-
ty or organization that has significant experience in the 
administrative processing of health care charges and 
claims. 
(e) FUNCTIONS
OF CONTRACTOR.—The Secretary 
shall provide in the contract for the following functions 
of the contractor with respect to each facility at which the 
demonstration project is conducted: 
(1) Establishment of a plan to standardize and 
coordinate all activities related to billing for health- 
care items and services furnished to veterans for 
non-service-connected disabilities. 
(2) Reengineering of the business processes for 
billing and accounts receivable activities.
(3) Application of commercial-industry stand-
ards for measures of access, timeliness, and per-
formance. 
(4) Establishment of a database containing 
third-party payor information for veterans receiving 
health care and services. 
(5) Such other requirements with respect to 
business practices as the Secretary may specify. 
(f) VHA PROJECT MANAGER.—As part of the dem-
onstration project, the Secretary shall ensure that a Vet-
erans Health Administration employee is designated to be 
the full-time project manager for the project and that such 
employee’s duty station is at one of the medical centers 
at which the project is conducted, with provision for visits 
as needed to the other medical center at which the project 
is conducted. 
(g) EMPLOYEE PROTECTION.—The Secretary shall 
administer the demonstration project so that during the 
period of the conduct of the demonstration project there 
is no reduction in full-time equivalent employees of the 
Department of Veterans Affairs at the medical centers at 
which the project is conducted that is attributable to the 
conduct of the demonstration project. 
(h) REPORTS TO CONGRESS.—
(1) PERIODIC PROGRESS REPORTS ON PROJECT 
IMPLEMENTATION.— 
(A) REPORTS REQUIRED.—The Secretary 
shall submit to Congress progress reports on 
the 
implementation 
of 
the 
demonstration 
project. 
(B) TIME
FOR
PROGRESS
REPORTS.— 
Such reports shall be submitted as expeditiously 
as feasible after the end of— 
(i) the 60-day period, the 90-day pe-
riod, and the 180-day period beginning on 
the date of the enactment of this Act; and 
(ii) the 60-day period, the 90-day pe-
riod, and the 180-day period beginning on 
the date of the award of the contract 
under subsection (d). 
(C) MATTER TO BE INCLUDED.—Each re-
port under this paragraph shall set out the 
progress to date on the implementation of the 
demonstration project, including— 
(i) before the contractor has been se-
lected, progress toward selection of the 
contractor (identified by the steps in the 
acquisition process that have been accom-