Contract spending for veterans’ medical services increased eight-fold over a decade to $34.6 billion in fiscal 2025.
That amount makes up more than 40% of the Veterans Affairs Department’s total procurement, according to Bloomberg Government analysis. And VA’s steady growth in medical services purchases means the agency accounted for more than two-thirds of the overall federal market last year.
The agency first surpassed Defense Department medical services spending in fiscal 2020 and more than doubled DOD’s purchases in the market last year.
Controlling a significant segment of the federal government’s medical services market gives the VA influence over system requirements, pricing, ...