H.R. 874 modifies how the Department of Veterans Affairs pays healthcare providers under its Community Care Program, which serves veterans who receive care outside the VA system. The bill requires the VA to set different payment rates based on where care is delivered—such as hospital inpatient facilities, hospital outpatient departments (both on-campus and off-campus), ambulatory surgery centers, and physician offices—rather than using uniform rates regardless of location. The legislation also requires that payment claims include a unique geographic identifier to pinpoint the exact provider location, and mandates that when multiple payment rates could apply to the same service, the VA must pay the lowest rate. These changes take effect on January 1, 2026, and affect all veterans receiving community care services and the network of private healthcare providers that bill the VA for those services.