VA and DOD Collaborations - A Baseline

Bottom Line:

The VA and DoD collaborate strategically on pharmaceutical management, leveraging their buying power, pooling resources in search of new treatments, and engaging in shared initiatives to enhance healthcare quality for their respective beneficiaries.

In the complex landscape of federal healthcare, the Department of Veterans Affairs (VA) and the Department of Defense (DoD) have formed a multifaceted partnership within pharmaceutical management. This collaboration is more than an operational alignment and it is actually a strategic imperative designed to realize substantial cost efficiencies across both expansive healthcare systems while driving healthcare innovation.

At the foundation of this partnership is the VA’s management of the Federal Supply Schedule (FSS) for pharmaceuticals. Operating under its distinct delegation from the General Services Administration (GSA), the VA plays the pivotal role in both enforcing the terms of the Veterans Healthcare Act of 1992 as well as engaging in direct negotiations with pharmaceutical manufacturers to ensure all covered drugs are available for purchase across the entire federal health system. In addition, the VA conducts a formal price review process and renegotiates price as appropriate. The FSS serves as the primary and most critical purchasing vehicle for both the VA and the DoD, creating a centralized and highly efficient procurement framework for Ordering Activities.

Expanding upon this foundational element, the collaboration to achieve better pricing intensifies when the DoD elects to participate in VA-issued National Contracts. This joint procurement approach significantly amplifies their combined market leverage by consolidating the demand for a specific drug type under a single, unified competitive solicitation process. A key tenet of these National Contracts is the built-in penalty structure in which the awardee is obligated to prioritize orders placed under these agreements.

Beyond procurement, the VA-DOD partnership expands through joint research initiatives. By pooling expertise and resources, particularly in cutting-edge fields such as clinical trials and pharmacogenomics, the VA and DoD expedite the delivery of novel treatments. These efforts are particularly focused on prevalent health conditions that disproportionately affect both military personnel and veteran populations. Moreover, the provision allowing veterans to participate in DoD-sponsored clinical trials expands access to innovative therapies, accelerating the translation of scientific discoveries into actionable patient benefits.

VA and DOD engage in joint training and education programs designed to improve the skills of healthcare professionals across both agencies. The collaborative development of best practices for medication adherence to improve patient outcomes, including pain management. The agencies also work together on broader pharmaceutical policy initiatives, directly influencing and ensuring equitable access to care for all beneficiaries. While both departments manage distinct and often demanding responsibilities, they maintain a shared vision of avenues of collaboration. The combined power of these two agencies forms an undeniably powerful force, yielding substantial benefits for both entities and, most importantly, for the continued well-being of our nation's veterans and active-duty service members.