(a) In general

Subchapter I of chapter 51 of title 38, United States Code, is amended by inserting after section 5103A the following new section:

5103B. Use of contract physicians for disability examinations

(a) Authority

(1) In general

Examinations with respect to medical disability of applicants for benefits under laws administered by the Secretary that are carried out through the Under Secretary for Benefits may be made by persons other than employees of the Department.

(2) Contracts

Any examination by a person under paragraph (1) shall be performed pursuant to a contract entered into by the Under Secretary for Benefits with that person.

(b) Licensure of contract health care professionals

(1) In general

Notwithstanding any provision of law regarding the licensure of health care professionals, a health care professional described in paragraph (2) may conduct an examination pursuant to a contract entered into under subsection (a) at any location in any State so long as the examination is within the scope of the authorized duties under such contract.

(2) Health care professional described

A health care professional described in this paragraph is a person who is eligible for appointment to a position in the Veterans Health Administration covered by section 7402(b) of this title, who—

(A)

has a current unrestricted license to practice the health care profession of the health care professional;

(B)

is not barred from practicing such health care profession in any State; and

(C)

is performing authorized duties for the Department pursuant to a contract entered into under subsection (a).

(c) Source of funds

Expenses of carrying out this section, including payments for examination travel and incidental expenses under the terms and conditions set forth by section 111 of this title, shall be reimbursed to the accounts available for the general operating expenses of the Veterans Benefits Administration and information technology systems from amounts available to the Secretary for payment of compensation and pensions.

(d) Mechanism for transmittal of new and material medical evidence introduced by applications during examinations

The Secretary shall establish a mechanism whereby a health care professional providing an examination under subsection (a) for an applicant for a benefit described in such subsection can transmit to the Secretary medical evidence introduced by the applicant during such examination that the health care professional considers new and material to the application.

(b) Clerical amendment

The table of sections after the beginning of chapter 51 of such title is amended by inserting after the item relating to section 5103A the following new item:

(c) Termination of pilot program

The pilot program under section 504(a) of the Veterans' Benefits Improvements Act of 1996 (Public Law 104–275; 38 U.S.C. 5101 note) is hereby terminated.

(d) Report to Congress

Not later than 3 years after the date of the enactment of this Act, the Secretary of Veterans Affairs shall submit to Congress a report on the effect of the use of the authority provided by section 5103B of such title, as added by subsection (a), on the cost, timeliness, and thoroughness of medical disability examinations.