To provide for greater equity in the allocation by the Secretary of Veterans Affairs of amounts appropriated for medical care programs of the Department of Veterans Affairs for the next two fiscal years and for other purposes related to the needs of veterans medical care.

Directs the Secretary of Veterans Affairs to allocate amounts appropriated to the Secretary for FY 1998 and 1999 for medical care so that the amount allocated to each element of the Department of Veterans Affairs designated as a Veterans Integrated Service Network is not less than the amount allocated to that element from amounts appropriated for FY 1996. (Such elements are currently designated for an allocation reduction from FY 1996 amounts under the Veterans Equitable Resource Allocation System developed by the Secretary and submitted to the Congress in March 1997.) Provides an exception on a pro rata basis with respect to any general appropriations reductions.

Directs the Secretary, effective with FY 2000, to ensure that each such Network is allocated an amount for medical care that is not less than 90 percent of the product of: (1) the number of veterans residing in the geographic area of that Network; and (2) the national medical services and administrative cost per veteran.