Key Issues > Duplication & Cost Savings > GAO's Action Tracker > DOD's Military Medical Command (2011-02)
defense icon, source: [West Covina, California] Progressive Management, 2008

Defense: DOD's Military Medical Command (2011-02)

Realigning the Department of Defense's military medical command structures and consolidating common functions could increase efficiency and result in projected savings ranging from $281 million to $460 million annually.

Action:

The Department of Defense (DOD) could take action to further assess alternatives for restructuring the governance structure of the military health care system.

Progress:

DOD has taken action to further assess alternatives for restructuring the governance structure of its Military Health System in order to reduce duplication within the command structure and eliminate redundant processes that add to growing defense health care costs, as GAO suggested in March 2011. Specifically, in June 2011, the Secretary of Defense established an internal task force to conduct a review of the governance of the Military Health System. The task force indentified cost containment, greater integration, and increased unity of effort as priority objectives for the Military Health System. The task force’s final report concluded that the establishment of a Defense Health Agency would (1) support medically ready forces, (2) achieve cost savings through reduction in duplication and variation, and (3) provide clear decision authority and accountability. As a result, in March 2012, the Deputy Secretary of Defense directed DOD leadership to form a team to develop an implementation plan for the Defense Health Agency. The Military Health System Governance Transition Organization was chartered in March 2013 to provide oversight, management, and support for the implementation of governance structure reforms. Additionally, the National Defense Authorization Act for Fiscal Year 2013 required DOD to provide three separate submissions to the congressional defense committees detailing its plans to implement this reform. DOD submitted these reports in March, June, and October 2013. Finally, on October 1, 2013, DOD established the new Defense Health Agency, which it anticipates will achieve greater system integration and increase accountability for health outcomes and costs.

Implementing Entity:

Department of Defense
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    • Brenda S. Farrell
    • Director, Defense Capabilities and Management
    • farrellb@gao.gov
    • (202) 512-3604