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Pentagon Proposes New Military Healthcare Agency to Congress

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Deputy Defense Secretary Ashton Carter reported the Pentagon’s plans to integrate Military Health System operations to Congress Friday.

The report includes three modifications to the current structure of the MHS.

The plan includes establishing the Defense Health Agency, which Carter said will accept all TRICARE management responsibilities and assume liability for clinical and business processes.

Second, the plan would require the appointment of market managers to oversee the healthcare system.

Finally, the proposal would transfer responsibility of running military treatment facilities within the Washington area to a subordinate organization within the DHA.

Treatment facilities will include the Walter Reed National Military Medical Center and Fort Belvoir Community Hospital.

Carter has already instructed the under secretary for personnel and readiness and the chairman of the Joint Chiefs of Staff to create a planning team composed of members from each of the military services.

The MHS will receive $1.4 billion in information technology funds during fiscal year 2012, including $86.5 million for research and $4.6 million in operations funding.



  1. What’s the point? The point is to cut services, mostly to retirees. When Walter Reed combined with Naval Medical they only needed to staff one of each ward instead of 2. So there are less staff, less docs, less residents and less care available to beneficiaries. In fact, there is so much less at the new Walter Reed that many of the outpatient clinics (and some inpatient) are referring all but active duty out to Tricare. And we should all know the quality of care offered by Tricare approved doctors- anybiody whose any good doesn’t accept Tricare or Medicare. Way to take care of your soldiers and retirees!

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