Overview

National Defense AuthorizationAct (NDAA) for Fiscal Year 2010authorized the Departments ofVeterans Affairs (VA) and Defense(DOD) to establish a 5-yeardemonstration project to integrate VAand DOD medical care into a first-ofits-kind Federal Health Care Center(FHCC) in North Chicago, Illinois.Expectations for the FHCC are outlinedin an Executive Agreement signed byVA and DOD in April 2010.The NDAA for Fiscal Year 2010 alsodirected GAO to annually evaluatevarious aspects of the FHCCintegration. This report examines(1) what progress VA and DOD havemade implementing the ExecutiveAgreement to establish and operatethe FHCC and (2) what plan, if any, VAand DOD have to assess FHCCprovision of care and operations. GAOreviewed FHCC documents andconducted visits to the site; interviewedVA, DOD, and FHCC officials; andreviewed related GAO work. GAO recommends that DOD seek alegislative change to designate theFHCC as a military treatment facility(MTF)-a DOD facility providingmedical or dental care to eligibleindividuals, and that VA and DODdirect FHCC leadership to furtherevaluate its integration performancereporting tool. DOD did not agree withthe recommendation regarding theMTF designation, but GAO continuesto believe such designation isimportant. VA and DOD agreed with

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