Twice in the last 44 years my husband has utilized the VA for health services connected to his service in Vietnam. Both times the services were provided by private providers but the VA paid what our insurance did not. 
My son lives in Nebraska now and he receives his health care for service related medical issues through the VA hospital and health clinics in Omaha and in Lincoln. He was reluctant to do so after he came back from Iraq but he has started to use them more recently and said services are good. It is helping with his service connected disabilities.
I hope the VA will utilize the private providers more so vet's can get treatment sooner without having to travel to Anchorage or Seattle.