In 1995, the Department of Veterans Affairs rewrote the section of its policy manual that dealt with risk management policies; this material is now incorporated into a section called Patient Safety (10). Referring to patient injury caused by accidents or negligence, the new wording stated that “the medical center will inform the patient and/or the family, as appropriate, of the event, assure them that medical measures have been implemented, and that additional steps are being taken to minimize disability, death, inconvenience, or financial loss to the patient or family.” The manual also stated that “District Counsel will advise the medical center Director about informing the patient and/or family of their right to file … Application for Compensation and Pension … or to file an administrative tort claim. …” In circumstances involving malpractice or accidental injury, the Department of Veterans Affairs requires its facilities to continue their safeguarding relationships with patients and to provide advice about the available remedies, which may include claims against the government. Although this policy is ethically laudable, its financial effects could be counterproductive. However, one Veterans Affairs facility, the Veterans Affairs Medical Center at Lexington, Kentucky, has operated under such a policy since 1987. We examined the use of this policy at the Lexington facility from 1990 through 1996 and found that on the basis of this center's experiences, the economic outcome could be positive.