Veterans' Health Care Improvement Act of 1987

Veterans' Health Care Improvement Act of 1987 - Amends Federal veterans' benefits provisions to include as a veterans' medical benefit services necessary to overcome a service-connected disability which impairs the veteran's procreative ability.

Authorizes the Administrator of Veterans Affairs to furnish domiciliary care to any veteran who is found to: (1) have a service-connected disability; or (2) be incapacitated from earning a living and having no means of adequate support.

Extends the eligibility for the furnishing of readjustment counseling and related mental health services to veterans or persons currently on active duty who also served on active duty in Vietnam or after May 7, 1975, in an area where hostilities occurred.

Extends certain transition period and reporting requirement dates under the Veterans Administration (VA) Vet Center program.

Authorizes the Administrator, between January 1, 1988, and December 31, 1991, to conduct a pilot program under which certain veterans will be furnished medical, rehabilitative, and health-related care in noninstitutional settings at not less than five nor more than ten demonstration project sites. Gives priority for the selection of veterans to such program. Provides for case management services by the VA for each veteran participating in such program. Authorizes the Administrator to furnish in-kind assistance to facilities furnishing services to veterans under these provisions. Prohibits the total cost of conducting the pilot program from exceeding 60 percent of the cost incurred by the VA if the VA had instead furnished such services. Requires the Administrator to conduct a study concerning such program, and report the study's findings, concerning the operation of the program during its first 36 months, to the Senate and House Veterans' Affairs Committees no later than April 1, 1991.

Increases the per diem rates paid to States for providing care to veterans in State homes.

Revises provisions relating to the VA's Department of Medicine and Surgery to establish the position of a second Associate Deputy Chief Medical Director to act as a second assistant to the Chief Medical Director of such Department.

Prohibits the Administrator from declaring as excess to the needs of the VA or otherwise disposing of the land and improvements at the VA Medical Centers in West Los Angeles and Sepulveda, California. Repeals current Federal law conflicting with such prohibition.

Directs the Administrator, no later than March 1, 1987, to report to the Senate and House Veterans' Affairs Committees regarding the VA's activities designed to promote increased efforts by medical and other health-professional training schools in: (1) training health-care professionals to care for older patients; and (2) research into the aging process and diseases and disabilities associated with aging. Outlines the information to be included in such report.