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Military Health System Transformation

We’re transforming the MHS to improve the readiness of our forces and the health care we provide to our warfighters, retirees and their families. Reform efforts focus on organizational, infrastructure and manpower changes. As changes are implemented, our priorities are to:

  • Support the operational readiness of our Joint Force by ensuring they are medically ready to deploy
  • Increase opportunities for medical professionals to improve their readiness skills
  • Provide beneficiaries with access to high quality care

Congress initiated these changes because they saw a need for a more flexible, adaptable, effective and integrated system to manage our medical facilities. Decades of best practices from across the Army, Navy and Air Force are converging now to build a stronger, more integrated and connected MHS.

We're also deploying a new electronic health record, MHS GENESIS, to all military hospitals and clinics.

Market Structure

The MHS began planning and implementing broad-scale health care reform initiatives in 2017 in response to the National Defense Authorization Act for Fiscal Year 2017 and additional guidance that followed in the NDAAs for fiscal years 2018-2020.

  • On Oct. 1, 2018, all military hospitals and clinics began to follow DHA standardized policies, procedures and clinical business practices.
  • On Jan. 30, 2020, the first four markets were established.
  • Following a brief pause during the COVID-19 pandemic, the Tidewater Market became the fifth market to be established on April 19, 2021.
  • DHA continued to stand up health care markets in 2021 and 2022 until the final market was established on Oct. 25, 2022.

Defense Health Networks

The DHA continues to mature processes and organizational alignment to meet federally mandated requirements in the NDAAs of FY 2017-2023, and on Oct. 1, 2023, the DHA moved from 20 markets to nine Defense Health Networks supported by Defense Health Support Activities. This advancement eliminates stand-alone military hospitals and clinics and will align every facility to a Defense Health Network. To learn more about military hospital and clinic alignment, visit the DHA's Defense Health Network pages.

Infrastructure Changes

Congress has directed the Department of Defense to submit a report on restructuring military hospitals and clinics to increase focus on military and medical force readiness. The DOD is nearing completion of its analysis, which has focused on both the role of each hospital and clinic to support military readiness and on the department's solemn obligation to provide outstanding health care for its 9.5 million beneficiaries.

Manpower Changes

The Department’s FY20 budget proposal recommended the realignment of approximately 12,000 uniformed billets from the MHS into operational forces by Fiscal Year 2027. The Military Departments made recommendations to support the intent of the Department after rigorous analysis of their operational responsibilities and requirements. This proposed reduction meets the Department’s intent of increasing the combat capability of our forces. With this direction, DHA is formulating plans to ensure that beneficiaries continue to have uninterrupted access to high-quality care through a combination of new civilian and contract personnel, outside partnerships, and the TRICARE network.

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Photo
Dec 20, 2021

SSO Market Standup

The Defense Health Agency officially established the Small Market and Stand Alone Military Treatment Facility Organization, or SSO, during a ceremony at Joint Base San Antonio-Kelly Field in Texas on Dec. 14.

The Defense Health Agency officially established the Small Market and Stand Alone Military Treatment Facility Organization, or SSO, during a ceremony at Joint Base San Antonio-Kelly Field in Texas on Dec. 14.

Article Around MHS
Nov 26, 2021

Local military medical units combine into medical market

Leadership unfurls the DHA guidons during a ceremony

The 96th Medical Group at Eglin Air Force Base in Florida and Defense Health Agency leadership marked the forming of a new military medical organization during a market establishment ceremony on Nov. 15. This new Florida Panhandle Market is a transformation of northwest Florida-based military treatment facilities into a market, or group of military ...

Article
Oct 26, 2021

Hawaii Market Strengthens DoD’s Medical Readiness & Patient Experience

DHA Assistant Director Dr. Brian Lein (left), and Hawaii Market Director Col. Martin Doperak (right) prepare to unfurl the flags during the formal Hawai'i Market Establishment Ceremony.

The Defense Health Agency (DHA), and the new Hawaii market director, Army Col. Martin Doperak, hosted a ceremony at Tripler Army Medical Center on October 20, 2021, ushering in the new Military Health System market.

Article
Oct 4, 2021

DHA establishes Central Texas Market to improve health care delivery

The Central Texas Market will enable greater collaboration across military hospitals and clinics in the Central Texas region to strengthen the medical readiness of service members and enable these facilities to deliver better care and a better patient experience.

Article
Oct 1, 2021

Happy Birthday, DHA! Director Reflects on Eight Years of Progress

Military personnel posing for a picture

Oct. 1 marked the 8th anniversary of the founding of the Defense Health Agency, the U.S. military’s only medical combat support agency. Director Army Lt. Gen. (Dr.) Ronald Place said the evolution, growth and success the agency has experienced since also comes with greater expectations, greater demand and ever-increasing responsibility going forward.

Video
Aug 2, 2021

MHS Minute - July 2021

Infographic for MHS Minute

The Defense Health Agency continues to establish new health care markets across the U.S. Markets are designed to increase access to care for beneficiaries and improve coordination, standardization, and best practices across the MHS. Watch this month's MHS Minute to learn more!

You also may be interested in...

Photo
Dec 20, 2021

SSO Market Standup

The Defense Health Agency officially established the Small Market and Stand Alone Military Treatment Facility Organization, or SSO, during a ceremony at Joint Base San Antonio-Kelly Field in Texas on Dec. 14.

The Defense Health Agency officially established the Small Market and Stand Alone Military Treatment Facility Organization, or SSO, during a ceremony at Joint Base San Antonio-Kelly Field in Texas on Dec. 14.

Article Around MHS
Nov 26, 2021

Local military medical units combine into medical market

Leadership unfurls the DHA guidons during a ceremony

The 96th Medical Group at Eglin Air Force Base in Florida and Defense Health Agency leadership marked the forming of a new military medical organization during a market establishment ceremony on Nov. 15. This new Florida Panhandle Market is a transformation of northwest Florida-based military treatment facilities into a market, or group of military ...

Article
Oct 26, 2021

Hawaii Market Strengthens DoD’s Medical Readiness & Patient Experience

DHA Assistant Director Dr. Brian Lein (left), and Hawaii Market Director Col. Martin Doperak (right) prepare to unfurl the flags during the formal Hawai'i Market Establishment Ceremony.

The Defense Health Agency (DHA), and the new Hawaii market director, Army Col. Martin Doperak, hosted a ceremony at Tripler Army Medical Center on October 20, 2021, ushering in the new Military Health System market.

Article
Oct 4, 2021

DHA establishes Central Texas Market to improve health care delivery

The Central Texas Market will enable greater collaboration across military hospitals and clinics in the Central Texas region to strengthen the medical readiness of service members and enable these facilities to deliver better care and a better patient experience.

Article
Oct 1, 2021

Happy Birthday, DHA! Director Reflects on Eight Years of Progress

Military personnel posing for a picture

Oct. 1 marked the 8th anniversary of the founding of the Defense Health Agency, the U.S. military’s only medical combat support agency. Director Army Lt. Gen. (Dr.) Ronald Place said the evolution, growth and success the agency has experienced since also comes with greater expectations, greater demand and ever-increasing responsibility going forward.

Video
Aug 2, 2021

MHS Minute - July 2021

Infographic for MHS Minute

The Defense Health Agency continues to establish new health care markets across the U.S. Markets are designed to increase access to care for beneficiaries and improve coordination, standardization, and best practices across the MHS. Watch this month's MHS Minute to learn more!

Last Updated: October 02, 2023
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