The VA is consolidating its Community Care Network from five contract regions into two — CCN Next Generation Network–East and CCN Next Generation Network–West — to streamline oversight, reduce costs and expand provider competition. The East award would cover 29 states, D.C., the U.S. Virgin Islands and Puerto Rico; the West would include 21 states plus Guam, American Samoa and the Northern Mariana Islands. The VA issued an RFP with proposals due March 16 and also plans to eliminate about 25,000 vacant VHA positions. Veterans groups warn community care should not supplant direct VA services.
VA Consolidates Community Care Contracts: Five Regions Reduced To Two To Boost Competition And Cut Costs
The seal is seen at the Department of Veterans Affairs building in Washington in 2013. (Charles Dharapak/AP)
The Department of Veterans Affairs (VA) plans to realign its Community Care Network, reducing contract regions from five to two as current agreements near expiration. VA officials say the reorganization aims to simplify oversight, reduce administrative costs and expand veterans' access to providers through increased competition and standardized care requirements.
What Changes
Under the existing structure, the VA's community care network is split into five regions: TriWest Healthcare Alliance manages two regions (14 states and three territories) and Optum Serve manages three regions (36 states, two territories and Washington, D.C.).
The planned contracts would create two awardees: Community Care Network (CCN) Next Generation Network–East and CCN Next Generation Network–West. The East network would cover 29 states, Washington, D.C., the U.S. Virgin Islands and Puerto Rico. The West network would cover 21 states plus Guam, American Samoa and the Northern Mariana Islands.
Why the VA Is Making the Change
VA leaders say consolidating to two regions will streamline management, lower administrative overhead and allow more health plans to compete to provide community care. Contracts are also expected to include industry standards and vendor tools to help the VA coordinate and monitor care delivered outside VA facilities.
"VA has learned a lot about community care over the years, and we are putting that knowledge to use to help veterans with the next generation of community care contracts," VA Secretary Doug Collins said in the department's announcement.
"This RFP will result in contracts that dramatically improve our ability to provide quality health care while ensuring veterans can choose the care that's best for them," Collins added.
Timeline and Procurement
The VA issued a request for proposals (RFP) on Monday inviting health plans and vendors to bid for the two large CCN contracts. According to the RFP, proposals are due to the VA by March 16.
Reactions, Concerns And Oversight
Veterans advocates and some lawmakers caution that expanded community care should complement — not replace — VA hospitals and clinics. Kyleanne Hunter, CEO of Iraq and Afghanistan Veterans of America, told Congress that veterans often receive faster appointments and specialized care at VA facilities, particularly for exposure-related illnesses and mental health conditions.
"Community care is a vital part of overall veterans' health care, but especially as we consider rising costs, we need to be clear that the evidence does not bear out that community care is a meaningful replacement for all direct VA care," Hunter testified in July.
House Veterans' Affairs Committee Chairman Rep. Mike Bost (R-Ill.) said the approach appears promising and that Congress will work with Secretary Collins and the administration to keep veterans' needs central. Rep. Mark Takano (D-Calif.), the committee's ranking Democrat, declined to comment on the RFP; a committee source said Democratic leaders had not yet been briefed but expected an update.
Related Staffing Changes
The VA also announced plans to eliminate roughly 25,000 vacant positions in the Veterans Health Administration. The department said many of those are "COVID-era roles" that have remained open for more than a year; the workforce previously shrank by about 30,000 employees this year through buyouts, early retirements and layoffs of probationary hires. VA press secretary Peter Kasperowicz said the move will not remove current employees and "will have zero impact on veteran care," adding that facilities will continue to fill positions as needed.
What To Watch
- Which vendors win the CCN Next Generation East and West awards.
- How the new contracts define care standards and data-sharing requirements with the VA.
- Congressional oversight and veterans' groups' responses as the RFP process proceeds.
The reorganization represents a significant shift in how the VA contracts for outside care and will be closely watched by veterans, providers and lawmakers.
