Why not get the VA completely out of the medical biz - fire everyone involved in that sector of the agency, sell the facilities to private investors, and give all vets the same health plan that members of congress have, free for life. Bet it would pay for itself handily with a pile left over.
With the makeup of today's military, I would think the costs of high quality, free-for-life medical care would spiral out of control relatively quickly.
These are not the men of yesteryear's ‘greatest generation’ anymore.