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<classification authority="sudocs">GA 1.13:GAO-01-513</classification>
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 <subject>Contract modifications</subject>
 <subject>Contract oversight</subject>
 <subject>Defense cost control</subject>
 <subject>Funds management</subject>
 <subject>Health care programs</subject>
 <subject>Managed health care</subject>
 <subject>Defense Health Program</subject>
 <subject>DOD Change Management Process</subject>
 <subject>DOD Defense Reform Initiative</subject>
 <subject>DOD Future Years Defense Program</subject>
 <subject>DOD Military Health Services System</subject>
 <subject>DOD TRICARE Program</subject>
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<titleInfo>
 <title>Defense Health Care: Continued Management Focus Key to Settling TRICARE Change Orders Quickly</title>
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<abstract>Under TRICARE, the Department of Defense&apos;s (DOD) managed care
program, military-operated hospitals and clinics are supplemented
by contracted civilian services. Since the inception of TRICARE, 
DOD has made numerous modifications to these contracts via	 
contract change orders. Since July 1997, when (GAO) reported that
DOD was taking steps to improve its change order process, a	 
backlog of change orders has continued to grow. In this report,  
GAO evaluated (1) the status of the change order backlog and how 
DOD addressed it, (2) factors that contributed to the growth of  
the backlog, and (3) DOD&apos;s new initiative to improve the change  
order process. As of June 30, 2000, the number of change orders  
issued had almost tripled, while the number of unsettled change  
orders had more than doubled since July 1997. Despite		 
recommendations to devote high-level attention to managing	 
improvements to the change order process, this was not done.	 
Until recently, none of TRICARE Management Activity&apos;s (TMA)	 
numerous initiatives effected much improvement to the process or 
reduced the backlog. The current small backlog is the result of  
recent concerted effort, not better management over time. TMA&apos;s  
new Change Management Process (CMP) appears to address many of	 
TMA&apos;s problems with change orders. However, past initiatives have
made similar promises and delivered little when they were	 
abandoned or eclipsed by higher priorities. The high volume of	 
change orders now or soon to enter the new CMP makes it 	 
imperative that TMA management closely monitor the process to	 
prevent future backlogs.</abstract>
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<identifier type="preferred citation">GAO-01-513</identifier>
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<subject>
 <topic>Contract modifications</topic>
 <topic>Contract oversight</topic>
 <topic>Defense cost control</topic>
 <topic>Funds management</topic>
 <topic>Health care programs</topic>
 <topic>Managed health care</topic>
 <topic>Defense Health Program</topic>
 <topic>DOD Change Management Process</topic>
 <topic>DOD Defense Reform Initiative</topic>
 <topic>DOD Future Years Defense Program</topic>
 <topic>DOD Military Health Services System</topic>
 <topic>DOD TRICARE Program</topic>
 <topic>Medicare Program</topic>
</subject>
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 <titleInfo>
  <title>United States Public Law 398 (106th Congress)</title>
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 <identifier type="public law citation">Public Law 106-398</identifier>
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