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

DHA has established 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. 

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 9.6 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.