
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 38USC1703]

 
                      TITLE 38--VETERANS' BENEFITS
 
                        PART II--GENERAL BENEFITS
 
    CHAPTER 17--HOSPITAL, NURSING HOME, DOMICILIARY, AND MEDICAL CARE
 
                          SUBCHAPTER I--GENERAL
 
Sec. 1703. Contracts for hospital care and medical services in 
        non-Department facilities
        
    (a) When Department facilities are not capable of furnishing 
economical hospital care or medical services because of geographical 
inaccessibility or are not capable of furnishing the care or services 
required, the Secretary, as authorized in section 1710 of this title, 
may contract with non-Department facilities in order to furnish any of 
the following:
        (1) Hospital care or medical services to a veteran for the 
    treatment of--
            (A) a service-connected disability;
            (B) a disability for which a veteran was discharged or 
        released from the active military, naval, or air service; or
            (C) a disability of a veteran who has a total disability 
        permanent in nature from a service-connected disability.

        (2) Medical services for the treatment of any disability of--
            (A) a veteran described in section 1710(a)(1)(B) of this 
        title;
            (B) a veteran who (i) has been furnished hospital care, 
        nursing home care, domiciliary care, or medical services, and 
        (ii) requires medical services to complete treatment incident to 
        such care or services; or
            (C) a veteran described in section 1710(a)(2)(E) of this 
        title, or a veteran who is in receipt of increased pension, or 
        additional compensation or allowances based on the need of 
        regular aid and attendance or by reason of being permanently 
        housebound (or who, but for the receipt of retired pay, would be 
        in receipt of such pension, compensation, or allowance), if the 
        Secretary has determined, based on an examination by a physician 
        employed by the Department (or, in areas where no such physician 
        is available, by a physician carrying out such function under a 
        contract or fee arrangement), that the medical condition of such 
        veteran precludes appropriate treatment in Department 
        facilities.

        (3) Hospital care or medical services for the treatment of 
    medical emergencies which pose a serious threat to the life or 
    health of a veteran receiving medical services in a Department 
    facility or nursing home care under section 1720 of this title until 
    such time following the furnishing of care in the non-Department 
    facility as the veteran can be safely transferred to a Department 
    facility.
        (4) Hospital care for women veterans.
        (5) Hospital care, or medical services that will obviate the 
    need for hospital admission, for veterans in a State (other than the 
    Commonwealth of Puerto Rico) not contiguous to the contiguous 
    States, except that the annually determined hospital patient load 
    and incidence of the furnishing of medical services to veterans 
    hospitalized or treated at the expense of the Department in 
    Government and non-Department facilities in each such noncontiguous 
    State shall be consistent with the patient load or incidence of the 
    furnishing of medical services for veterans hospitalized or treated 
    by the Department within the 48 contiguous States and the 
    Commonwealth of Puerto Rico.
        (6) Diagnostic services necessary for determination of 
    eligibility for, or of the appropriate course of treatment in 
    connection with, furnishing medical services at independent 
    Department out-patient clinics to obviate the need for hospital 
    admission.
        (7) Outpatient dental services and treatment, and related dental 
    appliances, for a veteran described in section 1712(a)(1)(F) of this 
    title.
        (8) Diagnostic services (on an inpatient or outpatient basis) 
    for observation or examination of a person to determine eligibility 
    for a benefit or service under laws administered by the Secretary.

    (b) In the case of any veteran for whom the Secretary contracts to 
furnish care or services in a non-Department facility pursuant to a 
provision of subsection (a) of this section, the Secretary shall 
periodically review the necessity for continuing such contractual 
arrangement pursuant to such provision.
    (c) The Secretary shall include in the budget documents which the 
Secretary submits to Congress for any fiscal year a detailed report on 
the furnishing of contract care and services during the most recently 
completed fiscal year under this section, sections 1712A, 1720, 1720A, 
1724, and 1732 of this title, and section 115 of the Veterans' Benefits 
and Services Act of 1988 (Public Law 100-322; 102 Stat. 501).

(Added Pub. L. 99-272, title XIX, Sec. 19012(b)(1), Apr. 7, 1986, 100 
Stat. 380, Sec. 603; amended Pub. L. 99-166, title I, Sec. 102(b)(1), 
Dec. 3, 1985, 99 Stat. 943; Pub. L. 99-272, title XIX, 
Sec. 19012(c)(5)(A), Apr. 7, 1986, 100 Stat. 382; Pub. L. 100-322, title 
I, Secs. 101(e)(3), 104, 112(a), May 20, 1988, 102 Stat. 492, 493, 499; 
Pub. L. 100-687, div. B, title XV, Sec. 1503(a)(1), Nov. 18, 1988, 102 
Stat. 4133; Pub. L. 102-54, Sec. 14(b)(9), June 13, 1991, 105 Stat. 283; 
renumbered Sec. 1703 and amended Pub. L. 102-83, Secs. 4(a)(1), (3)-(5), 
(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 403-406; Pub. L. 
102-585, title V, Sec. 501, Nov. 4, 1992, 106 Stat. 4955; Pub. L. 104-
262, title I, Sec. 104(b), Oct. 9, 1996, 110 Stat. 3184.)

                       References in Text

    Section 115 of the Veterans' Benefits and Services Act of 1988, 
referred to in subsec. (c), is set out as a note under section 1712 of 
this title.


                               Amendments

    1996--Subsec. (a). Pub. L. 104-262, Sec. 104(b)(1), struck out ``or 
1712'' after ``, as authorized in section 1710'' in introductory 
provisions.
    Subsec. (a)(2)(A). Pub. L. 104-262, Sec. 104(b)(2)(A), substituted 
``1710(a)(1)(B)'' for ``1712(a)(1)(B)''.
    Subsec. (a)(2)(B). Pub. L. 104-262, Sec. 104(b)(2)(B), added subpar. 
(B) and struck out former subpar. (B) which read as follows: ``a veteran 
described in paragraph (2), (3), or (4) of section 1712(a) of this 
title, for a purpose described in section 1712(a)(5)(B) of this 
title;''.
    Subsec. (a)(2)(C). Pub. L. 104-262, Sec. 104(b)(2)(C), substituted 
``section 1710(a)(2)(E) of this title, or a veteran who is in receipt of 
increased pension, or additional compensation or allowances based on the 
need of regular aid and attendance or by reason of being permanently 
housebound (or who, but for the receipt of retired pay, would be in 
receipt of such pension, compensation, or allowance),'' for ``section 
1712(a)(3) (other than a veteran who is a former prisoner of war) of 
this title''.
    Subsec. (a)(7). Pub. L. 104-262, Sec. 104(b)(3), substituted 
``1712(a)(1)(F)'' for ``1712(b)(1)(F)''.
    1992--Subsec. (a)(1)(C). Pub. L. 102-585 added subpar. (C).
    1991--Pub. L. 102-83, Sec. 5(a), renumbered section 603 of this 
title as this section.
    Pub. L. 102-83, Sec. 4(a)(5), substituted ``non-Department'' for 
``non-Veterans' Administration'' in section catchline.
    Subsec. (a). Pub. L. 102-83, Sec. 5(c)(1), substituted ``1710 or 
1712'' for ``610 or 612'' in introductory provisions, ``1712(a)(1)(B)'' 
for ``612(a)(1)(B)'' in par. (2)(A), ``1712(a)'' for ``612(a)'' and 
``1712(a)(5)(B)'' for ``612(a)(5)(B)'' in par. (2)(B), ``1712(a)(3)'' 
for ``612(a)(3)'' in par. (2)(C), ``1720'' for ``620'' in par. (3), and 
``1712(b)(1)(F)'' for ``612(b)(1)(F)'' in par. (7).
    Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted ``Secretary'' for 
``Administrator'' in introductory provisions and in par. (2)(C).
    Pub. L. 102-83, Sec. 4(a)(5), substituted ``non-Department'' for 
``non-Veterans' Administration'' in introductory provisions and in pars. 
(3) and (5).
    Pub. L. 102-83, Sec. 4(a)(3), (4), substituted ``Department'' for 
``Veterans' Administration'' wherever appearing in introductory 
provisions and pars. (2), (3), (5), and (6).
    Subsec. (a)(2)(B). Pub. L. 102-54, Sec. 14(b)(9)(A), struck out 
``section'' before ``paragraph''.
    Subsec. (a)(7). Pub. L. 102-54, Sec. 14(b)(9)(B), substituted 
``section 612(b)(1)(F)'' for ``section 612(b)(1)(G)''.
    Subsec. (a)(8). Pub. L. 102-83, Sec. 4(a)(1), substituted 
``administered by the Secretary'' for ``administered by the Veterans' 
Administration''.
    Subsec. (b). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted 
``Secretary'' for ``Administrator'' in two places.
    Pub. L. 102-83, Sec. 4(a)(5), substituted ``non-Department'' for 
``non-Veterans' Administration''.
    Subsec. (c). Pub. L. 102-83, Sec. 5(c)(1), substituted ``1712A, 
1720, 1720A, 1724, and 1732'' for ``612A, 620, 620A, 624, and 632''.
    Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted ``Secretary'' for 
``Administrator'' in two places.
    Pub. L. 102-54, Sec. 14(b)(9)(C), inserted before period at end 
``(Public Law 100-322; 102 Stat. 501)''.
    1988--Subsec. (a). Pub. L. 100-322, Sec. 104(b)(1), substituted 
``furnish any of the following:'' for ``furnish--''.
    Subsec. (a)(1). Pub. L. 100-322, Sec. 104(b)(2), (3), substituted 
``Hospital'' for ``hospital'' and the period for semicolon at end.
    Subsec. (a)(2). Pub. L. 100-322, Sec. 104(b)(2), (3), substituted 
``Medical'' for ``medical'' and the period for semicolon at end.
    Subsec. (a)(2)(B). Pub. L. 100-687 substituted ``paragraph (2), (3), 
or (4) of section 612(a)'' for ``612(a)(4)'', and ``612(a)(5)(B)'' for 
``612(a)(5)''.
    Pub. L. 100-322, Sec. 101(e)(3)(A), substituted ``section 612(a)(4) 
of this title, for a purpose described in section 612(a)(5) of this 
title'' for ``section 612(f)(1)(A)(ii) of this title''.
    Subsec. (a)(2)(C). Pub. L. 100-322, Sec. 101(e)(3)(B), substituted 
``section 612(a)(3) (other than a veteran who is a former prisoner of 
war)'' for ``section 612(g)''.
    Subsec. (a)(3). Pub. L. 100-322, Sec. 104(a)(1), (b)(2), (3), 
substituted ``Hospital'' for ``hospital'', inserted ``or nursing home 
care under section 620 of this title'', and substituted the period for 
semicolon at end.
    Subsec. (a)(4), (5). Pub. L. 100-322, Sec. 104(b)(2), (3), 
substituted ``Hospital'' for ``hospital'' and the period for semicolon 
at end.
    Subsec. (a)(6). Pub. L. 100-322, Sec. 104(b)(2), (4), substituted 
``Diagnostic'' for ``diagnostic'' and the period for ``; or''.
    Subsec. (a)(7). Pub. L. 100-322, Sec. 104(b)(2), substituted 
``Outpatient'' for ``outpatient''.
    Subsec. (a)(8). Pub. L. 100-322, Sec. 104(a)(2), added par. (8).
    Subsec. (c). Pub. L. 100-322, Sec. 112(a), added subsec. (c).
    1986--Subsec. (a)(5). Pub. L. 99-272, Sec. 19012(c)(5)(A), made 
conforming amendment to Pub. L. 99-166, Sec. 102(b)(1). See 1985 
Amendment note below.
    1985--Subsec. (a)(5). Pub. L. 99-166, Sec. 102(b)(1), as amended by 
Pub. L. 99-272, Sec. 19012(c)(5)(A), inserted ``(other than the 
Commonwealth of Puerto Rico)'' after ``in a State'' and substituted 
``contiguous States and the Commonwealth of Puerto Rico'' for 
``contiguous States, but the authority of the Administrator under this 
paragraph with respect to the Commonwealth of Puerto Rico shall expire 
on September 30, 1988, and until such date the Administrator may, if 
necessary to prevent hardship, waive the applicability to the 
Commonwealth of Puerto Rico of the restrictions in this paragraph with 
respect to hospital patient loads and the incidence of the furnishing of 
medical services''.


                    Effective Date of 1988 Amendments

    Section 1503(b) of Pub. L. 100-687 provided that: ``The amendments 
made by subsection (a)(1) [amending this section] shall apply with 
respect to the furnishing of medical services by contract to veterans 
who apply to the Veterans' Administration for medical services after 
June 30, 1988.''
    Section 101(i) of Pub. L. 100-322 provided that: ``The amendments 
made by this section [amending this section and sections 612 and 617 
[now 1712 and 1717] of this title] shall apply with respect to the 
furnishing of medical services to veterans who apply for such services 
after June 30, 1988.''


                    Effective Date of 1985 Amendment

    Section 102(b)(1) of Pub. L. 99-166, as amended by Pub. L. 99-272, 
title XIX, Sec. 19012(c)(5)(A), Apr. 7, 1986, 100 Stat. 382, provided 
that the amendment made by that section is effective Oct. 1, 1988.


               Ratification of Medical Services Contracts

    Section 1503(c) of Pub. L. 100-687 ratified actions of the 
Administrator in contracting with facilities other than Veterans' 
Administration facilities for furnishing medical services incident to 
treatment of certain veterans receiving hospital, nursing home, or 
domiciliary care, who applied for such services during the period 
beginning July 1, 1988, and ending Nov. 18, 1988.


    Puerto Rico Contract Care; Limitation on Incurring of Obligations

    Section 102(b)(2)-(5) of Pub. L. 99-166, as amended by Pub. L. 99-
272, title XIX, Sec. 19012(c)(5)(B), Apr. 7, 1986, 100 Stat. 382, 
limited Administrator's authority to incur obligations for medical 
services for veterans residing in Puerto Rico during fiscal years 1986 
to 1988.

                  Section Referred to in Other Sections

    This section is referred to in sections 1712, 1712A, 2303 of this 
title; title 42 section 1395cc.
