VA, Defense Department to partner on supply-ordering to cut waste, fraud

The U.S. Department of Veterans Affairs and the Department of Defence will collaborate to create a centralized healthcare supply chain management system.

The agreement between the agencies will give the VA access to the Defense Logistics Agency's procurement system to facilitate buying medical items, equipment and other supplies. The Defense Department's system will replace the VA's existing logistics and supply chain infrastructure.

The agencies said in a news release that the partnership combines resources to create a centralized ordering system to reduce waste and lower the risk of fraud in purchasing medical supplies. 

"The adoption of a single healthcare logistics system by VA and DOD highlights the commitment of both organizations to improve military and Veteran health care by increasing the access and quality of care they receive," said VA Secretary Robert Wilkie in a news release. "This is a huge step forward in our efforts to transform VA into a modern, high-performing organization by simplifying operations and leveraging DOD's supply chain system to support our Veterans."

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