Title VIII, SEC. 8102. ORGANIZATION OF DEPARTMENT OF VETERANS AFFAIRS FACILITIES AS HEALTH PLANS. (a) In General. Chapter 73 of title 38, United States Code, is amended (1) by redesignating subchapter IV as subchapter V; and (2) by inserting after subchapter III the following new subchapter: ``SUBCHAPTER IV PARTICIPATION AS PART OF NATIONAL HEALTH CARE REFORM `` 7341. Organization of health care facilities as health plans ``(a) The Secretary shall organize health plans and operate Department facilities as or within health plans under the Health Security Act. The Secretary shall prescribe regulations establishing standards for the operation of Department health care facilities as or within health plans under that Act. In prescribing those standards, the Secretary shall assure that they conform, to the maximum extent practicable, to the requirements for health plans generally set forth in part 1 of subtitle E of title I of the Health Security Act. ``(b) Within a geographic area or region, health care facilities of the Department located within that area or region may be organized to operate as a single health plan encompassing all Department facilities within that area or region or may be organized to operate as several health plans. ``(c) In carrying out responsibilities under the Health Security Act, a State (or a State-established entity) ``(1) may not impose any standard or requirement on a VA health plan that is inconsistent with this section or any regulation prescribed under this section or other Federal laws regarding the operation of this section; and ``(2) may not deny certification of a VA health plan under the Health Security Act on the basis of a conflict between a rule of a State or health alliance and this section or regulations prescribed under this section or other Federal laws regarding the operation of this section. `` 7342. Contract authority for facilities operating as or within health plans ``The Secretary may enter into a contract (without regard to provisions of law requiring the use of competitive procedures) for the provision of services by a VA health plan in any case in which the Secretary determines that such contracting is more cost-effective than providing such services directly through Department facilities or when such contracting is necessary because of geographic inaccessibility. `` 7343. Resource sharing authority: facilities operating as or within health plans ``The Secretary may enter into agreements under section 8153 of this title with other health care plans, with health care providers, and with other health industry organizations, and with individuals, for the sharing of resources of the Department through facilities of the Department operating as or within health plans. `` 7344. Administrative and personnel flexibility ``(a) In order to carry out this subchapter, the Secretary may ``(1) carry out administrative reorganizations of the Department without regard to those provisions of section 510 of this title following subsection (a) of that section; and ``(2) enter into contracts for the performance of services previously performed by employees of the Department without regard to section 8110(c) of this title. ``(b) The Secretary may establish alternative personnel systems or procedures for personnel at facilities operating as or with health plans under the Health Security Act whenever the Secretary considers such action necessary in order to carry out the terms of that Act. ``(c) Subject to the provisions of section 1404 of the Health Security Act, the Secretary may carry out appropriate promotional, advertising, and marketing activities to inform individuals of the availability of facilities of the Department operating as or within health plans. Such activities may only be carried out using nonappropriated funds. `` 7345. Funding provisions: grants and other sources of assistance ``The Secretary may apply for and accept, if awarded, any grant or other source of funding that is intended to meet the needs of special populations and that but for this section is unavailable to facilities of the Department or to health plans operated by the Government if funds obtained through the grant or other source of funding will be used through a facility of the Department operating as or within a health plan.''. (b) Clerical Amendment. The table of sections at the beginning of chapter 73 is amended by striking out the item relating to the heading for subchapter IV and inserting in lieu thereof the following: ``Subchapter IV Participation as Part of National Health Care Reform ``7341. Organization of health care facilities as health plans. ``7342. Contract authority for facilities operating as or within health plans. ``7343. Resource sharing authority: facilities operating as or within health plans. ``7344. Administrative and personnel flexibility. ``7345. Funding provisions: grants and other sources of assistance. ``Subchapter V Research Corporations''.