---
kind: "section"
citation: "38 U.S.C. § 7406"
title: "38"
title_heading: "Veterans’ Benefits"
number: "7406"
heading: "Residencies and internships"
release: "119-102"
url: "https://uscodex.org/usc/38/7406"
units:
  - "Part V — Boards, Administrations, and Services"
  - "Chapter 74 — Veterans Health Administration—personnel"
  - "Subchapter I — Appointments"
---

# §7406. Residencies and internships

- (a)
  - (1) The [Secretary](/usc/38/101.md?p=1) may establish residencies and [internships](#a-2-A). The [Secretary](/usc/38/101.md?p=1) may appoint qualified persons to such positions without regard to civil service or classification laws, rules, or regulations.
  - (2) For the purposes of this section:
    - (A) The term “internship” includes the equivalency of an internship as determined in accordance with regulations which the [Secretary](/usc/38/101.md?p=1) shall prescribe.
    - (B) The term “intern” means a person serving an [internship](#a-2-A).
- (b) The [Secretary](/usc/38/101.md?p=1) may prescribe the conditions of employment of persons appointed under this section, including necessary training, and the customary amount and terms of [pay](/usc/38/7297.md?p=a-3) for such positions during the period of such employment and training. The amount and terms of such [pay](/usc/38/7297.md?p=a-3) may be established retroactively based on changes in such customary amount and terms.
- (c)
  - (1) In order to carry out more efficiently the provisions of [subsection (a)(1)](#a-1), the [Secretary](/usc/38/101.md?p=1) may contract with one or more hospitals, medical schools, or medical installations having hospital facilities and participating with the [Department](/usc/38/101.md?p=1) in the training of [interns](#a-2-B) or residents to provide, by the designation of one such institution to serve as a central administrative [agency](/usc/38/4214.md?p=a-2-A), for the central administration—
    - (A) of stipend payments;
    - (B) provision of fringe benefits; and
    - (C) maintenance of records for such [interns](#a-2-B) and residents.
  - (2) The [Secretary](/usc/38/101.md?p=1) may [pay](/usc/38/7297.md?p=a-3) to such designated [agency](/usc/38/4214.md?p=a-2-A), without regard to any other law or regulation governing the expenditure of Government moneys either in advance or in arrears, an amount to cover the cost for the period such [intern](#a-2-B) or resident serves in a [Department](/usc/38/101.md?p=1) facility furnishing hospital care or medical services of—
    - (A) stipends fixed by the [Secretary](/usc/38/101.md?p=1) pursuant to [paragraph (1)](#c-1);
    - (B) hospitalization, medical care, and life insurance and any other [employee](/usc/38/4303.md?p=3) benefits as are agreed upon by the participating institutions for the period that such [intern](#a-2-B) or resident serves in a [Department](/usc/38/101.md?p=1) facility furnishing hospital care or medical services;
    - (C) tax on employers pursuant to [chapter 21](/usc/38/chptII-ch21.md) of the Internal Revenue Code of 1986, where applicable; and
    - (D) an amount to cover a pro rata share of the cost of expense of such central administrative [agency](/usc/38/4214.md?p=a-2-A).
  - (3)
    - (A) Any amounts paid by the [Secretary](/usc/38/101.md?p=1) to such central administrative [agency](/usc/38/4214.md?p=a-2-A) to cover the cost of hospitalization, medical care, or life insurance or other [employee](/usc/38/4303.md?p=3) benefits shall be in lieu of any benefits of like nature to which such [intern](#a-2-B) or resident may be entitled under the provisions of [title 5](/usc/5.md), and the acceptance of stipends and [employee](/usc/38/4303.md?p=3) benefits from the designated central administrative [agency](/usc/38/4214.md?p=a-2-A) shall constitute a waiver by the recipient of any claim such recipient might have to any payment of stipends or [employee](/usc/38/4303.md?p=3) benefits to which such recipient may be entitled under this title or [title 5](/usc/5.md).
    - (B) Notwithstanding [subparagraph (A)](#c-3-A), any period of service of any such [intern](#a-2-B) or resident in a [Department](/usc/38/101.md?p=1) facility furnishing hospital care or medical services shall be deemed creditable service for the purposes of [section 8332 of title 5](/usc/5/8332.md).
  - (4) The agreement with such central administrative [agency](/usc/38/4214.md?p=a-2-A) may further provide that the designated central administrative [agency](/usc/38/4214.md?p=a-2-A) shall—
    - (A) make all appropriate deductions from the stipend of each [intern](#a-2-B) and resident for local, [State](/usc/38/101.md?p=20), and Federal taxes;
    - (B) maintain all records pertinent to such deductions and make proper deposits of such deductions; and
    - (C) maintain all records pertinent to the leave accrued by such [intern](#a-2-B) and resident for the period during which such recipient serves in a participating facility, including a [Department](/usc/38/101.md?p=1) facility furnishing hospital care or medical services.
  - (5) Leave described in [paragraph (4)(C)](#c-4-C) may be pooled, and the [intern](#a-2-B) or resident may be afforded leave by the facility in which such person is serving at the time the leave is to be used to the extent of such person’s total accumulated leave, whether or not earned at the facility in which such person is serving at the time the leave is to be afforded.

## Source credit

(Added Pub. L. 102–40, title IV, § 401(b)(2), May 7, 1991, 105 Stat. 227; amended Pub. L. 104–262, title III, § 345, Oct. 9, 1996, 110 Stat. 3208.)

## Notes

### Editorial Notes

### References in Text

Chapter 21 of the Internal Revenue Code of 1986, referred to in subsec. (c)(2)(C), is classified to chapter 21 (§ 3101 et seq.) of Title 26, Internal Revenue Code.

### Prior Provisions

Provisions similar to those in this section were contained in section 4114(b) of this title prior to the repeal of that section as part of the complete revision of chapter 73 of this title by Pub. L. 102–40.

### Amendments

1996—Subsec. (c)(2), (3)(B). Pub. L. 104–262, § 345(1), substituted “Department facility furnishing hospital care or medical services” for “Department hospital” wherever appearing.

Subsec. (c)(4)(C). Pub. L. 104–262, § 345(2), substituted “participating facility” for “participating hospital”.

Pub. L. 104–262, § 345(1), substituted “Department facility furnishing hospital care or medical services” for “Department hospital”.

Subsec. (c)(5). Pub. L. 104–262, § 345(3), substituted “facility” for “hospital” in two places.

### Statutory Notes and Related Subsidiaries

### Training in Telemedicine

Pub. L. 112–154, title I, § 108(b), Aug. 6, 2012, 126 Stat. 1174, provided that: In general.—The Secretary of Veterans Affairs shall, to the extent feasible, offer medical residents opportunities in training in telemedicine for medical residency programs. The Secretary shall consult with the Accreditation Council for Graduate Medical Education and with universities with which facilities of the Department have a major affiliation to determine the feasibility and advisability of making telehealth a mandatory component of medical residency programs. Telemedicine defined.—In this subsection, the term ‘telemedicine’ means the use by a health care provider of telecommunications to assist in the diagnosis or treatment of a patient’s medical condition.”