To amend title 38, United States Code, to specify the entities eligible to purchase pharmaceutical products from the Federal Supply Schedule.

Amends Federal provisions concerning the procurement of health-care items by the Department of Veterans Affairs to allow only the following entities to purchase a drug, pharmaceutical product, or hematology-related product from the Federal Supply Schedule: (1) an agency or instrumentality of the Federal Government; or (2) an entity specified in Federal law or regulation before July 1, 1997, as eligible to procure such drugs or products from such Schedule.