A bill to amend title 38, United States Code, to authorize modification of the structure of the Office of the Chief Medical Director, to clarify procedure for removal for cause of certain employees, to authorize the use of the Director Pay Grade within VA Central Office and for related purposes.

Revises Federal law relating to the organization of the Office of the Chief Medical Director of the Department of Medicine and Surgery of the Veterans Administration (the Department) to provide that such Office shall consist of the following: (1) not to exceed two Associate Deputy Chief Medical Directors; (2) not to exceed seven Assistant Chief Medical Directors; (3) such Medical Directors as may be appointed by the Administrator of Veterans Affairs; (4) such directors of hospitals and other medical facilities as may be appointed by the Administrator; and (5) such other persons as may be appointed by the Chief Medical Director.

Authorizes the Chief Medical Director to establish, modify, or abolish such positions and offices as are deemed necessary to carry out the needs of the Department.

Outlines provisions concerning length of appointment to such offices and positions, and possible extensions or terminations of such appointment terms by the Administrator.

Reduces the minimum and maximum annual salary rate for the position of Medical Director of the Department.