Improving Outcomes for Disabled Veterans: Oversight of VA’s Medical Disability Examination Office

VA Budget and ModernizationHouse Veterans' Affairs Subcommittee on Disability Assistance and Memorial Affairs · 2025-11-20 · 119th Congress
The House Veterans' Affairs Subcommittee on Disability Assistance and Memorial Affairs held this oversight hearing to examine the Medical Disability Examination Office (MDEO), which manages contractors performing over 90% of veterans' disability exams nationwide. Begins at 0:24:56
Transcript
Highlights

Title

Oversight of VA's Contracted Disability Exam Office (MDEO)

Purpose

The House Veterans' Affairs Subcommittee on Disability Assistance and Memorial Affairs held this oversight hearing to examine the Medical Disability Examination Office (MDEO), which manages contractors performing over 90% of veterans' disability exams nationwide. The hearing followed GAO reports finding that MDEO miscalculated and overpaid contractor incentives by millions of dollars and fell behind on required quality reviews, and members raised additional concerns about exam scheduling, accessibility, and location problems reported by veterans. Begins at0:24:56

Who spoke

Chairman Latrell0:24:48: Opened by outlining that over 90% of exams are done through four major contractors under $13 billion in multi-year contracts0:26:20, and detailed GAO findings that MDEO overpaid vendors and missed special focus reviews for TBI, MST, and Gulf War illness cases0:27:130:28:34; later pressed Ms. Glenn on how the $2.3 million overpayment occurred and whether internal checks now prevent recurrence0:45:040:48:06.

Ranking Member McGarvey (D-KY)0:30:40: Said constituent stories include exams scheduled without veterans' knowledge, mismatched specialties, and rushed mental health exams0:31:59; noted only $500,000 in penalties were imposed versus $2.3 million overpaid0:32:57, and pressed on canceled DOGE-related contracts for financial audits and veteran feedback surveys0:55:05.

Ms. Elizabeth Curda, GAO0:34:52: Testified GAO made five recommendations after finding breakdowns in corrective-action follow-up, incorrect incentive payments, and no direct examiner feedback channel0:37:53; said none of the five recommendations were fully implemented as of the hearing0:38:14, and that five of six examiners interviewed wanted a direct feedback channel0:39:42.

Ms. Mary Glenn, MDEO Deputy Executive Director0:40:30: Reported VBA completed 3.3 million exam requests and 9 million DBQs in FY2025, with average completion time improved to 26.4 days from 35.70:41:42; claimed MDEO has recouped overpayments and implemented all GAO recommendations, requesting closure of the findings0:44:20; later acknowledged the overpayment process was manual with no standardized checks and that staff involved are no longer employed at VA0:50:121:21:57.

Ms. Tara Flores, VA Acquisition Service0:34:21: Introduced as joining Ms. Glenn to address contracting questions; present throughout for acquisition-related matters but did not testify at length in the transcript.

Rep. (General) [Subcommittee member]0:56:53: Asked whether missing medical evidence reaches examiners in organized form, citing veteran/VSO reports of disorganized case files0:57:45; pressed on whether file transfers to vendors are 100% verified or randomly checked1:00:04.

Rep. Abser1:01:56: Asked how MDEO is soliciting examiner feedback1:02:21 and raised a New Hampshire veteran's case of a canceled exam due to VA failing to send medical records, questioning rescheduling difficulty and geographic coverage1:04:211:05:00.

Rep. Morrison1:07:08: Asked about technology tools to reduce in-person exams1:07:37; raised VFW's proposal for multi-year contracting versus the current model1:08:36 and an IG finding that 29 of 100 VHA medical opinions were issued before examiners completed PACT Act training1:09:54.

Chairman Latrell (second round)1:11:05: Pressed on total penalties collected in FY24 and whether penalties matched overpayment amounts1:11:05; questioned whether examiner portal responses risk retribution from vendors1:12:56.

Rep. [member questioning on PVA accessibility]1:14:08: Cited Paralyzed Veterans of America findings that over half of 135 exam facilities visited had accessibility barriers1:15:02; asked about site visits, of which MDEO conducted 159 in FY251:15:37, and pressed on reports of exams held in hotel rooms1:16:11.

Rep. Sil1:20:30: Calculated that a 3% incentive cap on $2.3 million in overpayments implies roughly $76 million in underlying invoices1:21:21; asked how many staff were reprimanded and whether vendors were changed1:21:57.

Committee member with neuroscience background1:23:10: Challenged extending special focus reviews for traumatic brain injury from two to three years, arguing medical advances mean delayed reviews could miss debilitating findings1:24:38; got Ms. Curda and Ms. Glenn to agree the change is "worse" for veterans1:28:001:28:37.

Rep. [member following up on examiner trends]1:28:39: Noted GAO found examiners no longer elevate concerns to vendors because vendors don't listen, questioning how MDEO establishes trends without that feedback1:29:06; noted the new examiner portal has only about two months of data1:30:11.

Rep. [closing member, small-business comparison]1:30:18: Compared the ~20% incentive-payment error rate to a restaurant sending out wrong orders, calling it unsustainable1:30:41; proposed a roundtable with contracted vendor executives to hear directly about their controls1:31:06, citing a hypothetical military sexual trauma exam conducted in a hotel room1:32:13.

Key moments

GAO found MDEO overpaid contractors nearly $2.3 million in financial incentives in the first quarter of FY2024 due to a manual process with no standardized accuracy checks0:39:120:39:29.

Ranking Member McGarvey noted only about $500,000 in penalties were imposed on contractors who failed quality standards, versus the $2.3 million overpaid0:32:57.

Ms. Glenn confirmed the staff involved in the overpayment error are no longer employed at VA, but MDEO has not changed vendors as a result1:21:571:22:16.

Rep. Sil's back-of-envelope math, based on a 3% incentive cap, put the total invoice value of the two erroneous contracts at approximately $76 million1:21:211:21:34.

GAO's Ms. Curda testified that VBA is shifting special focus reviews for TBI, MST, and Gulf War illness cases from a two-year to a three-year schedule due to staffing reductions, and stated under direct questioning that this change is "worse" for veterans1:18:411:28:37.

Paralyzed Veterans of America found more than half of 135 exam facilities visited had accessibility barriers; MDEO said it conducted 159 surprise site visits in FY251:15:021:15:37.

GAO reported five of six interviewed examiners wanted a direct feedback channel to VBA, and all six said unaddressed quality concerns made it harder to perform accurate exams0:39:42.

Ms. Glenn testified MDEO's new examiner feedback portal went live at the end of September 2025 and has already received compliments and suggestions, though only about two months of data exist1:02:571:30:11.

A member cited an IG report finding 29 of 100 VHA medical opinions were provided before examiners completed PACT Act training, though Ms. Glenn said only three VBA contract examiners were found non-compliant1:09:541:10:18.

Ms. Glenn stated VBA's contract permits exam travel of up to 50 miles for general exams and 100 miles for specialty exams, using mobile medical units to reach rural veterans1:06:081:06:33.

Metadata

CommitteeHouse Veterans' Affairs Subcommittee on Disability Assistance and Memorial Affairs
Chamber / CongressHouse · 119th Congress
Date2025-11-20
TypeHearing
Witnesses
Ms. Elizabeth Curda — Director of Education, Workforce, and Income Security, Government Accountability Office
Ms. Mary Glenn — Deputy Executive Director, Medical Disability Examination Office
Ms. Tara Flores — Director, Acquisition Service, Office of Acquisition, Logistics and Construction, U.S. Department of Veterans Affairs
Videoyoutube
Transcript294 caption blocks · 11,420 words · 1:35:46 runtime
EventCongress.gov 118660