Recently, a news report stated that the Department of Veterans Affairs doctors had been reminded that if they don't report medical malpractice, they could face losing their licenses. Supposedly, many doctors have been under the impression that they don't have to report medical malpractice, since the VA covers them in most situations.
That's not really true anymore. In fact, the VA may cover things like the doctor's liability, but malpractice or a reduced standard of care could still lead to a doctor losing his license. For instance, if a doctor doesn't report a malpractice case that another VA doctor took park in, both doctors, once the situation is realized, could face losing their licenses.