This bill permanently authorizes the Department of Veterans Affairs (VA) to utilize contract physicians for medical disability examinations required by applicants for VA benefits. It codifies this authority into Title 38, United States Code, ensuring that examinations can be performed by non-Department employees under specific contractual agreements. This measure aims to streamline the disability examination process for veterans. A key provision addresses the **licensure of contract health care professionals**, allowing them to conduct examinations in any state, regardless of state-specific licensure laws, provided they hold a current unrestricted license and are not barred from practice. The bill also mandates the Secretary of Veterans Affairs to establish a mechanism for these contract professionals to transmit any **new and material medical evidence** introduced by applicants during their examinations. Expenses for these examinations will be reimbursed from funds allocated for compensation and pensions. Upon enactment, the existing pilot program for contract physicians, established under the Veterans' Benefits Improvements Act of 1996, will be terminated. Furthermore, the Secretary is required to submit a report to Congress within three years, detailing the impact of this permanent authority on the **cost, timeliness, and thoroughness** of medical disability examinations.