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If confirmed by the U.S. Senate, McDonald would replace acting Secretary Sloan Gibson, who replaced Eric Shinseki as head of the embattled federal agency at the end of May.
Shinseki's tenure was plagued by "systemic" issues and mismanagement at a number of VA health care centers. A high-profile report in April claimed 40 or more veterans may have died at a Phoenix center while awaiting care.
According to McDonald's company biography, he served as a captain in the U.S. Army for five years, including in the 82nd Airborne.
"During his service, he not only completed his qualifications for Airborne, Ranger, Jungle, Arctic and Desert Warfare, Jumpmaster, Expert Infantry, and Senior Parachutist, but also earned an MBA from
the University of Utah in 1978. Upon leaving the military he received the Meritorious Service Medal," the bio noted.
Obama is reportedly expected to name McDonald sometime this week, possibly as soon as Monday.