The government is not running Walter Reed's medical facilities.
It's run by private contractors -- although the key group, IAP Worldwide Services, is actually headed by two former execs with Halliburton's Kellogg, Brown and Root, and includes board members like former VP Dan Quayle.
There is far more informaton about a long battle to privatize Walter Reed and what the results of that have been here at Tom Paine. A sample of the report:
"But this time the privatization game may have backfired in the face of the Bush administration and its friends in the corporate world. It is one thing to screw workers—unfortunately, that’s now considered business as usual—but in the case of Walter Reed the ultimate victims are a much more revered group. The stark evidence that the Bush Administration, for all its rhetoric about supporting the troops, is much more interested in supporting the contractors, could be leading to a political earthquake."