Hearings to examine building a 21st century VA health care system, focusing on assessing the next generation of VA's community care network

VA Budget and ModernizationSenate Veterans' Affairs · 2026-02-11 · 119th Congress
The Senate Committee on Veterans' Affairs held this hearing to examine the Department of Veterans Affairs' "NexGen" procurement for its next-generation community care network contracts, released in December 2025, along with a related national dental care contract proposal. Begins at 0:17:13
Transcript
Highlights

Title

VA's next-generation community care contracts and oversight

Purpose

The Senate Committee on Veterans' Affairs held this hearing to examine the Department of Veterans Affairs' "NexGen" procurement for its next-generation community care network contracts, released in December 2025, along with a related national dental care contract proposal. Members and witnesses from the VA and the VA Office of Inspector General discussed cost growth in community care, quality-measurement gaps, oversight and payment-integrity concerns, and rural and continuity-of-care access issues under the 2018 MISSION Act. Begins at0:17:13

Who spoke

Chairman Jerry Moran (R-KS)0:17:13: Opened by describing the MISSION Act's promise of local, timely veteran choice0:17:42 and welcoming VA's December RFPs for NexGen and a national dental contract0:18:31; later pressed on an Omaha VA report of staff manipulating clinically-indicated dates to limit community care access and a similar new allegation0:37:36, and described a constituent denied continued cancer treatment because his commute was 59 rather than 60 minutes1:08:32.

Ranking Member Richard Blumenthal (D-CT)0:19:52: Said NexGen contracts will total roughly $1 trillion through 20270:19:52 and warned against a "blank check" for community care without guardrails, noting VA has not responded to a bipartisan information request letter0:22:46; later cited community care funding rising 530% (from $9B to $48B) since 2019 versus about 200% growth in direct care funding0:44:560:45:270:45:48.

Mr. Topping, VA witness0:26:05: Described NexGen as a 10-year multiple-award IDIQ contract built on five pillars — quality, value, alternative payments, utilization management, and program integrity0:29:21; said 41% of FY2025 VA appointments were in the community0:27:20 and cited projected NexGen savings over the contract's life0:31:16; repeatedly acknowledged VA cannot currently measure community care quality0:47:401:11:06.

Ms. Searight, VA Office of Inspector General0:31:48: Testified OIG has flagged four persistent challenges — timely/coordinated care, visibility into quality concerns, workforce/management-control gaps, and outdated financial systems0:33:29; said VA has reported about $4 billion in community care overpayments since 2021, roughly 4% of total payments0:52:37.

Ms. Skolrood, VA Executive Director0:37:00: Briefly began to respond regarding VA's review of OIG recommendations in the NexGen contract language before Searight completed the answer0:37:00.

Sen. Dan Sullivan (R-AK)0:53:09: Raised concern that a multivendor framework could leave rural, high-cost regions like Alaska without bidders0:55:31, and secured confirmation VA can adjust reimbursement and continue partnering with Alaska Native tribal health organizations under NexGen0:55:590:58:47.

Sen. Maggie Hassan (D-NH)0:59:20: Pressed on continuity of care so veterans can keep seeing satisfied community providers through the transition to new contracts0:59:49, and on access for rural New Hampshire veterans, noting Medicaid-cut-related closures of two rural clinics1:03:091:05:34.

Sen. Tammy Duckworth (D-IL)1:10:50: Asked whether VA had data showing outpatient care quality comparisons between direct and community care1:10:50; questioned whether contract-oversight staffing had kept pace with community care spending nearly doubling from $32B (2018) to $62B (2023)1:16:03.

Sen. Mazie Hirono (D-HI)1:18:29: Questioned whether NexGen represents a move toward a more "privatized" model1:19:07 and how VA can adequately oversee expanded contracts while facing hiring freezes and staff vacancies1:23:20; also pressed on seamless transfer of separating service members' health records to VA1:24:43.

Key moments

Blumenthal cited $1 trillion in projected NexGen contract spending through 2027 and warned against approving it without stronger guardrails, noting VA has not answered a bipartisan oversight letter0:19:520:22:46.

Moran raised an OIG finding that Omaha VA staff manipulated clinically-indicated dates to limit veterans' access to community care, and said his office is now reviewing a similar allegation at another facility0:37:36.

Community care funding rose 530% (from $9 billion to over $48 billion) since 2019, compared with about 200% growth in direct-care funding over the same period, per figures Blumenthal presented and Topping did not dispute0:44:560:45:270:45:48.

Topping repeatedly acknowledged VA currently has no quality measures for community care, meaning it cannot compare outcomes between direct and community care — a gap he said NexGen is designed to close0:47:401:11:061:12:11.

Searight said VA has reported about $4 billion in community care overpayments since 2021, roughly 4% of total amounts paid0:52:37.

Moran described a constituent denied his final two of seventeen scheduled cancer treatments at his community provider because his home was found to be a 59- rather than 60-minute drive from a VA facility, calling it an "unacceptable anomaly" that Topping said NexGen's utilization management is meant to prevent1:08:321:09:28.

Duckworth noted community care spending nearly doubled from $32 billion (2018) to $62 billion (2023) while contract-oversight staffing did not grow proportionally, and Topping could not say what percentage of authorized oversight positions were filled1:16:031:16:32.

Hirono asked whether NexGen signals a shift toward privatized care; Topping said it does not, framing it instead as introducing standard managed-care tools VA currently lacks1:19:07.

Sullivan warned that a multivendor bidding framework could leave high-cost, low-population states like Alaska without any bidders, risking veterans' access; Topping said the ID/IQ structure allows regionally tailored reimbursement to address this0:55:310:57:54.

Moran's closing exchange with Topping confirmed the goal is that standards of care be uncompromising and identical whether delivered directly by VA or through community care, even as contract implementation varies regionally1:41:081:42:06.

Metadata

CommitteeSenate Veterans' Affairs
Chamber / CongressSenate · 119th Congress
Date2026-02-11
TypeMeeting
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript204 caption blocks · 10,968 words · 1:43:07 runtime
EventCongress.gov 337969