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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. >>Learn More About MHS GENESIS

Military Treatment Facility Transition

Market Structure

DHA is establishing a market-based structure to manage the hospitals and clinics. These market organizations will provide shared administrative services to the hospitals and clinics in their region. While the transition of the administration and management of military hospitals and clinics from the Military Departments to Defense Health Agency was paused in 2020 due to the COVID-19 pandemic, transition activities have resumed, and several markets have now been established.

Infrastructure Changes

Congress directed the Defense Department to assess existing hospital and clinic infrastructure and determine whether some facilities should be realigned or restructured. The Office of the Assistant Secretary of Defense for Health Affairs is now conducting the required analysis in conjunction with the Military Departments, DHA and the Joint Staff.  It’s expected that some facilities may be re-scoped, some may have capabilities reduced, while others may expand. DHA will be responsible for implementing the final determinations made by the Department and is working with the Military Departments to ensure that all beneficiaries continue to enjoy access to high-quality care.

Manpower Changes

The Department’s FY20 budget proposal recommended the realignment of about 17,000 uniformed billets from the MHS into operational forces. 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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Payne visits service members, facilities in Puget Sound

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12/18/2019
Air Force Maj. Gen. Lee Payne, assistant director for Combat Support, Defense Health Agency, speaks with service members and staff at Madigan Army Medical Center during a town hall in Letterman Auditorium. Payne visited Madigan as the final stop of his tour of the Pacific Northwest military treatment facilities, also including the Air Force’s 62nd Medical Squadron, Naval Hospital Bremerton and Naval Health Clinic Oak Harbor. He conducted town halls at each location, focusing on MHS transformation, and answering questions from the audience on topics ranging from MHS GENESIS, readiness and training, and the future of military medicine. (U.S. Army photo by Ryan Graham)

Effective combat power depends on military health’s ability to build a medically ready force

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DHA transition discussion hosted at Naval Hospital Bremerton

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12/12/2019
Air Force Maj. Gen. Lee E. Payne, Assistant Director for Combat Support Agency, Defense Health Agency explained to Naval Hospital Bremerton staff members during a Town Hall meeting there are four overlapping areas of focus for DHA which are great outcomes, ready medical force, satisfied patients, and fulfilled staff, all contributing to the goal of having a medically ready force and a ready medical force.

The most important outcome for us is a medically ready force

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Changes to military health care system aimed at readiness

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12/6/2019
Speaking before the House Armed Services subcommittee on personnel during a Dec. 5 hearing on Capitol Hill, Assistant Secretary of Defense for Health Affairs Thomas McCaffrey (left), Army Lt. Gen. (Dr.) Ronald Place (second from left), director of the DHA, the service Surgeons General, and Joint Staff Surgeon outlined the necessity for the health care system to change in order to support warfighter readiness. (MHS photo)

Merger of all hospitals and clinics to DHA a key step

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Military hospital transformation – introducing the market construct

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12/5/2019
Barclay Butler, Ph.D., MBA, assistant director of management at DHA, explains the market concept to an audience of active-duty and civilian conference attendees at the 2019 AMSUS Annual Meeting in National Harbor, Maryland, Dec. 4. (Photo by MHS Communications)

Markets will manage hospital and clinic needs within a geographic region

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McCaffery calls for military medical strategic framework for warfighting readiness

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12/5/2019
Assistant Secretary of Defense for Health Affairs Tom McCaffery speaks on Thursday at the annual meeting of AMSUS, the Society of Federal Health Professionals. McCaffery announced to the nearly 2,000 conference attendees that he has asked the Military Health System's senior leadership to develop and codify a formal strategic framework to guide integrating and optimizing all MHS components to meet his vision. (MHS photo)

'New reality' includes tight synchronization, expanding partnerships

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NMCP hosts ‘The Future of Military Medicine’ discussion panel

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12/3/2019
Navy Capt. Joel Schofer, deputy chief of the Medical Corps at the Navy Bureau of Medicine and Surgery, talks about the Defense Health Agency transition during Naval Medical Center Portsmouth’s Future of Military Medicine panel. The panel participants were (left to right) Schofer, deputy chief of the Medical Corps at the Navy Bureau of Medicine and Surgery, Navy Capt. Lisa Mulligan, NMCP’s commanding officer and Capt. Guido Valdes, Navy Medicine East deputy commander (U.S. Navy photo by Seaman Imani N. Daniels)

The readiness of the Navy Medicine team is paramount to combat survival in the future

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Tri-Service surgeons perform the first surgeries at new hospital

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12/3/2019
The Army, Navy and Air Force surgeons and physician assistant met with the hospital command team. (Left to right) Army Col. Alfonso Alarcon, orthopedic surgeon at BDAACH; Army Maj. Harry Aubin, general surgeon at BDAACH; Army Command Sgt. Maj. Nicole Haines, the hospital senior enlisted advisor; Air Force Capt. Christopher Ng, Air Force general surgeon with 51st MDG; Army Maj. Eric de la Cruz, chief of general surgery at BDAACH; Navy Lt. Cmdr. Paul Lewis and Lt. Cmdr. Dan Sanford, general surgeons with 3rd Medical Battalion; Army Maj. John Fletcher, general surgeon at BDAACH; Army Col. Andrew L. Landers, hospital commander, and Air Force Capt. Steven Maya, physician assistant with 51st MDG. (U.S. Army photo by Inkyeong Yun)

This event showcased the collaboration amongst the tri-service general surgeons

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