I've always wondered that about VA. I can understand the need to have providers present in the clinic, but I've never worked at a VA that did not have space issues. Easiest way to improve access when you don't have space for more doctors? Hire doctors for remote positions. Cheaper than contracting with community providers, and you'll get better continuity of care.
But then there seems to be this pervasive idea, even within VA among leadership, that VA clinicians are slackers, can't be trusted to monitor themselves, and will all take advantage of the situation if allowed to telework.