VA Provider Pay Modernization Act of 2016

This bill provides that market pay (one of the three salary components of Veterans Health Administration [VHA] physicians and dentists) shall be the same for each physician or dentist with the same specialty or assignment in the same Integrated Service Network (VISN).

The market pay of a physician or dentist may exceed the market pay generally available to a physician or dentist with the same specialty or assignment in the same VISN by up to 5%.

Such amount shall take into account the pay in the relevant health service area, as designated by the Department of Health and Human Services.

Market pay in a health professional shortage area for a physician's or dentist's specialty may exceed by up to 25% the market pay for a physician or dentist in a health service area with a specialty or assignment not relevant to the health professional shortage area.

The VA shall: (1) evaluate the market pay of a physician or dentist every 12 months; and (2) in implementing a promotion system, create parity between the grades and annual rates of basic pay for VHA employees performing similar duties in the same facility, regardless of service time.