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57 F.4th 1374
Fed. Cir.
2023
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Background

  • Peter Van Dermark, a veteran rated totally and permanently service-disabled by VA, received emergency cardiac treatment in Thailand in 2016 and 2018 (non–service‑connected conditions).
  • He submitted claims under 38 U.S.C. §§ 1728 and 1725 seeking reimbursement or direct payment to providers for those foreign emergency treatments.
  • VA’s Office of Community Care and the Board denied the claims, invoking 38 U.S.C. § 1724(a), which prohibits VA from "furnish[ing] hospital . . . care or medical services" outside any State except in enumerated circumstances.
  • The Veterans Court assumed the treatments were emergency care but held § 1724(a)’s "furnish" bars VA payment abroad and that §§ 1728/1725 do not override that prohibition.
  • On appeal to the Federal Circuit, the parties stipulated the factual record; the sole contested legal questions were statutory interpretation of "furnish" and whether §§ 1728/1725 displace § 1724(a).
  • The Federal Circuit affirmed: "furnish" in § 1724(a) encompasses reimbursement/direct payment for care abroad, and §§ 1728/1725 do not override § 1724(a).

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Does "furnish hospital...care or medical services" in § 1724(a) include VA payments/reimbursement for care provided by non‑VA providers abroad? Van Dermark: "Furnish" should not be read to include payment/reimbursement (particularly absent a VA contract with providers). Government: "Furnish" includes "provide for," i.e., funding or reimbursing treatment provided by others; historical context and VA practice support the broad meaning. Held: "Furnish" covers payment/reimbursement for care provided by others; § 1724(a) therefore bars VA payment for non‑service‑connected treatment abroad.
Do §§ 1728 and 1725 authorize VA reimbursement/payment for emergency non‑VA treatment abroad, overriding § 1724(a)? Van Dermark: Later statutes authorizing reimbursement/direct payment for emergency treatment govern and permit payment even if treatment occurred abroad. Government: §§ 1728/1725 contain no geographic grant and can be harmonized with § 1724(a); no clear congressional intent to override § 1724. Held: No conflict; harmonization yields that §§ 1728/1725 do not apply to treatment abroad outside § 1724(b)’s exceptions; they do not override § 1724(a).

Key Cases Cited

  • New Prime Inc. v. Oliveira, 139 S. Ct. 532 (2019) (courts look to a term's ordinary meaning at time of enactment).
  • Return Mail, Inc. v. U.S. Postal Serv., 139 S. Ct. 1853 (2019) (a statutory term can have different meanings in different provisions based on context).
  • Morton v. Mancari, 417 U.S. 535 (1974) (courts must attempt to harmonize statutes and give effect to both when possible).
  • Van Dermark v. McDonough, 34 Vet. App. 204 (2021) (Veterans Court opinion affirming VA's denial and interpreting "furnish" to include payments).
Read the full case

Case Details

Case Name: Van Dermark v. McDonough
Court Name: Court of Appeals for the Federal Circuit
Date Published: Jan 23, 2023
Citations: 57 F.4th 1374; 21-2225
Docket Number: 21-2225
Court Abbreviation: Fed. Cir.
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    Van Dermark v. McDonough, 57 F.4th 1374