To provide for the Secretary of Veterans Affairs to conduct a pilot program to determine the effectiveness of contracting for the use of private memory care facilities for veterans with Alzheimer's Disease.

Directs the Secretary of Veterans Affairs to conduct during fiscal years 2007 and 2008 a pilot program to determine the effectiveness of contracting with private memory care facilities to provide services for veterans suffering from Alzheimer's disease as an alternative to the provision by the Secretary of inpatient or home health care for such veterans. Requires the pilot program to be conducted through five medical centers of the Veterans Health Administration selected by the Secretary.