Are the DHP Savings From Utilization Management Achievable?
Abstract
The Defense Health Program (DHP) faces a number of important issues over the next several years. In the summer 1998 submission for the Program Objectives Memorandum for FY 2000, Health Affairs (HA) projections for FY 2000 through FY 2005 (from its capitation model) originally showed a large gap between what would be required to fulfill the DHP's medical missions and what would be available under the fiscal guidance provided to the program. The Under Secretary of Defense, Personnel and Readiness, therefore tasked CNA and RAND to examine a number of questions associated with the DHP budget, its costs, and possible alternatives available for providing health care in the civilian market. CNA will answer the four questions shown in the slide. The answer to the first question was required as part of the submission for POM 2000 that was due in the late fall of 1998. This annotated briefing presents the findings of our analysis. We examined the effects of reductions in the DHP budget associated with efficiencies arising from practicing utilization management (UM) at military medical treatment facilities (MTFs) and clinics. Since we first presented our findings to the Under Secretary, the combination of additional money for the DHP and cost-saving efficiencies have eased the immediate concerns for the next few years. Nonetheless, growing health care costs and budgetary issues will continue to confront the DHP. We are scheduled to report our findings for the last three questions by the end of calendar year 1999.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1999
- Accession Number
- ADA593354
Entities
People
- Richard D. Miller
- Robert A. Levy
Organizations
- CNA ANALYSIS AND SOLUTIONS ALEXANDRIA VA