A Study of Military Health Care Costs: Direct Versus Purchased Care in a Geographical Region
Abstract
Health care expenses are one of the largest contributing factors to increased personnel costs, the fastest-rising component of the Department of Defense's budget. This research examines the cost implications of developing a new military treatment facility in a specified geographical region, in an effort to reduce military health care spending. Care received at a military treatment facility is referred to as direct care, while care received in the private sector is referred to as purchased care. This research leverages existing information on direct and purchased medical care to gain insights into the workload costs for medical care in a geographical region. We use a Monte Carlo simulation approach to determine the direct and purchased care costs for general surgery and orthopedic specialties. We apply our method to the Atlanta, Georgia region and conclude that based on workload measures, it is cheaper in Atlanta to provide direct care at a new military treatment facility.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 22, 2018
- Accession Number
- AD1056374
Entities
People
- Lindsey N. Mcevoy
Organizations
- Air Force Institute of Technology