The Veterans Health Administration (VHA) pays for care provided to VA beneficiaries in non-VA hospitals through its contract hospitalization program as mandated by Congress in the late 1980s. The Non-VA Hospital System (NVH) software captures the patient's Demographics, Provider, Hospital Name and Location, Medicare Provider Number, Diagnoses and Procedures for which the patient received care during his/her inpatient stay. The data is received from either the patient or the medical center providing the care (normally on a UB-92 form). The billing office employee enters the information into Veterans Health Information Systems and Technology Architecture and sends information to the Austin Information Technology Center (AITC). The non-VA hospitals are reimbursed at Medicare rates based on the Prospective System (PPS). PPS uses the appropriate Diagnostic Related Groups (DRGs). Each DRG has a different rate-adjusted reimbursement based on the regional and urban/rural designation of the provider non-VA Hospitals. NVH is housed at the AITC and uses software developed by the AITC in conjunction with 3M and the Center for Medicare and Medicaid Services (CMS). It is a batch system written in Common Business Oriented Language, ALC, and Statistical Analysis Software. Processing occurs daily.

The Non-VA Care Medical and Pharmacy System (FEE) automates the Veterans Health Administration (VHA) Fee for Service program. It authorizes and pays private physicians, hospitals, and pharmacists for products and services provided to Veterans approved for the program. Veterans are reimbursed through VistA Fee for medically-related expenses including travel. Information is entered into the VistA Fee system through Veterans Health Information Systems and Technology Architecture (VistA) online menus. VistA Fee is run at the Austin Information Technology Center and interfaces with the Financial Management System (FMS), the Beneficiary Identification and Records Locator System (BIRLS), and the VHA Work Measurement database (VWM), to produce payments, accounting updates, and reports. VistA Fee facilitates money management, master record updating, and input error resolution. Daily reports indicating all payments processed and erroneous input transactions are transmitted to approximately 170 Veterans Affairs Medical Centers (VAMCs). Letters are sent to Veterans on a monthly basis detailing payments made on their behalf to Non-VA Care Service providers. Monthly, quarterly, semi-annual and annual reports are sent to the Veterans Affairs Central Office (VACO) and VAMCs. The Non-VA Care Fee Basis Medical System is commonly referred to as Central FEE.