To direct the Secretary of Veterans Affairs to conduct a pilot program to provide hospice care for terminally ill veterans.

Directs the Secretary of Veterans Affairs to conduct a pilot program at not less than 30 Department of Veterans Affairs facilities to provide hospice care for terminally ill veterans who are currently being provided hospital, nursing home, or domiciliary care by the Department. Directs the Secretary to contract with non-Department facilities that are considered hospice programs for purposes of title XVIII (Medicare) of the Social Security Act. Outlines provisions concerning the duration of such hospice care for each individual, allowing such individual to terminate such care or, in some cases, to have such care extended. Provides for payments to hospice programs for the provision of such care. Requires the Secretary to notify terminally ill veterans of the availability of such pilot program.

Requires the Secretary to report to the Congress on the quality of care furnished under the program as well as its cost-effectiveness.