The Military Health System experienced significant changes during 2018, with the planning for and starting the transition of Phase One MTFs to the authority, direction, and control of DHA. Congress called for changes in the Military Health System in the National Defense Authorization Acts (NDAA) for Fiscal Year 2017 and Fiscal Year 2019, which redefined the roles of the military medical departments and the Defense Health Agency (DHA), specifically with respect to administration of military hospitals and clinics. The law requires the military departments to transition administration of military medical treatment facilities (MTFs) to the director of the DHA not later than September 30, 2021. The DHA director has authority for the administration of each MTF, to include: budgetary matters, information technology, health care administration and management, administrative policy and procedures, military medical construction and any other matters the secretary of Defense determines appropriate.

The ultimate goal of this transition for the Department of Defense is a more integrated, efficient and effective Military Health System.  The consolidation of MTF-based health care delivery in a single agency will facilitate enhanced military and medical force readiness; improved patient experience; and reduced costs to the Department through unity of effort, standardization of medical care, and integration of health care services.