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<classification authority="sudocs">GA 1.13:HEHS-00-10</classification>
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 <subject>Military downsizing</subject>
 <subject>Military cost control</subject>
 <subject>Managed health care</subject>
 <subject>Health care programs</subject>
 <subject>Combat readiness</subject>
 <subject>Interagency relations</subject>
 <subject>Health resources utilization</subject>
 <subject>Health services administration</subject>
 <subject>Military hospitals</subject>
 <subject>Redundancy</subject>
 <identifier>CHAMPUS</identifier>
 <identifier>DOD TRICARE Program</identifier>
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 <title>Defense Health Care: Tri-Service Strategy Needed to</title>
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<abstract>Pursuant to a legislative requirement, GAO provided information on the
Department of Defense&apos;s (DOD) military health system (MHS), focusing on:
(1) the need for national capital area (NCA) military treatment
facilities (MTF) and DOD&apos;s strategy for assessing such needs; (2)
identifying any obstacles hindering DOD&apos;s ability to make coherent needs
assessments; and (3) whether current care coordination among NCA MTFs
could be improved.&lt;p/&gt;GAO noted that: (1) despite successful DOD and service efforts to
improve MHS management, DOD still lacks a comprehensive tri-service
strategy for determining and allocating medical resources among MTFs;
(2) consequently, neither GAO nor DOD can fully address the need for, or
appropriate size of NCA MTFs or MTFs elsewhere in MHS; (3) a tri-service
strategy applied systemwide would enable DOD to assess the need for each
MTF by taking into account the resources needed for both readiness and
peacetime care available at all NCA MTFs; (4) also, resources available
in the local civilian community need to be considered; (5) such a
strategy would also provide a systematic basis for justifying budget
requests; (6) DOD has recently begun to address this fundamental
deficiency; (7) a key obstacle to developing a tri-service strategy is
the military services&apos; long-standing independence; (8) historically, the
services have had enough resources to maintain separate health care
systems, with capabilities overlapping during peacetime; (9) as a
result, over the years, formal interservice management efforts have been
limited and, today, remain difficult to achieve; (10) a second obstacle
is that DOD and the services have not determined the cost of MHS&apos;
evolving readiness mission or the cost of its peacetime care; (11)
without knowing such costs, DOD is hampered in justifying MHS&apos; size and
defending the need for individual MTFs; (12) exacerbating this has been
the emerging peacetime care emphasis during this decade--projected to
continue in the next--which competes for resources with MHS&apos; basic
readiness mission; (13) regarding service coordination with NCA, GAO
found that MTFs have entered into numerous, varying agreements to share
resources; (14) such ad hoc agreements are vulnerable to changes in MTF
budgeting approaches and other factors that can affect the MTFs&apos;
willingness to coordinate their efforts; (15) DOD and the services&apos;
Surgeons General have undertaken improvement initiatives, including
implementing DOD&apos;s managed care program, TRICARE; reducing the number of
medical personnel; consolidating graduate medical education programs;
establishing partnerships with the Department of Veterans Affairs;
reducing hospital stays; restructuring hospitals into more efficient
clinics; and revising budget processes to more closely link funding to
cost-effective health care; and (16) among these the most critical in
GAO&apos;s and DOD&apos;s view is to develop a tri-service strategy that takes
into account current and projected beneficiary populations and optimally
seeks to realign MTF staffing and resource allocations.</abstract>
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<identifier type="preferred citation">GAO/HEHS-00-10</identifier>
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<note>Letter Report</note>
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<subject>
 <topic>Military downsizing</topic>
 <topic>Military cost control</topic>
 <topic>Managed health care</topic>
 <topic>Health care programs</topic>
 <topic>Combat readiness</topic>
 <topic>Interagency relations</topic>
 <topic>Health resources utilization</topic>
 <topic>Health services administration</topic>
 <topic>Military hospitals</topic>
 <topic>Redundancy</topic>
 <topic>CHAMPUS</topic>
 <topic>DOD TRICARE Program</topic>
 <topic>Civilian Health and Medical Program of the Uniformed</topic>
 <topic>Services</topic>
 <topic>Defense Health Program</topic>
</subject>
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