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IIP - Frequently Asked Questions (FAQs)


What is the Innovation Investment Process?

The Innovation Investment Process (IIP) is an enterprise-level process for implementing large-scale initiatives to reduce costs within the Military Health System (MHS). Initiatives' effect on quality of care, medical readiness, beneficiary/provider service and satisfaction, and resource efficiency is also considered. Initiatives have impacts such as reduction of direct care system costs, private sector health care costs, and/or general administrative and overhead costs in the MHS. Authority for the IIP stems from the Quadrennial Defense Review Medical Transformation Roadmap, Initiative 11, for performance-based financing. The Office of the Assistant Secretary of Defense (Health Affairs) administers the process.

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Why was IIP developed?

The intent of the IIP is to implement large-scale projects to generate big savings within the MHS. It is an opportunity for innovative ideas to be proposed, analyzed, and presented to senior leaders. Cost savings realized through the IIP will reduce the impact of rising costs on the operational mission of the Military Health System and the Department. The IIP will also demonstrate to Congress and other stakeholders that the MHS is doing everything possible to contain and reduce DoD's health care costs.

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What role can I play in IIP?

For the process to be successful, it will take lots of good ideas. We need you to contribute "good ideas" that can be developed into initiatives. Ideas may be either substantially researched or brand new, but they must reduce health care or other costs within the MHS.

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Who may submit ideas to be considered for IIP funding?

Anyone may submit a "good idea" through the Submit Concept page. Ideas and information submitted will feed directly into a senior level group reviewing proposals and will not be visible to others.

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What happens to my idea after I submit it?

Every idea will be considered either alone or in combination with others. Promising ideas will be developed into short proposals that consist of analyses of MHS data and private-sector financial information supporting estimates of their return on investment and the associated risks. A Board of Directors - consisting of the senior leaders in the MHS, Office of Management and Budget, and DoD comptroller - will select promising proposals for development into IIP initiatives. Each initiative will consist of a detailed business case analysis and implementation plan. IIP initiatives that are "green-lighted" by the Board of Directors will be funded for implementation.

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What is the timeline for IIP?

The process is intended to be easy and swift and permit quick submission of good ideas from multiple sources. The first ideas were selected for proposals in late 2006 and new ideas are reviewed continuously as submitted. Some initiatives could be funded during the current fiscal year. Initiatives will continue to be developed and funded in subsequent years.

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What are some of the topics that my idea may address?

We expect ideas will be submitted on a wide variety of topics, such as disease management, demand management, pharmacy, national contracts for services, equipment or personnel, reduction of overhead costs within the MHS, efficiencies through use of information management and technology, rightsizing, and reductions in private sector health care costs. Ideas proposing partnerships with the Veterans Administration and other federal, state or private sector entities also are encouraged. In short, all ideas are welcome!

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What if my idea cannot be accomplished under existing laws and regulations?

You may submit ideas that require additional legal authority. These initiatives, if approved, will be submitted in the next year's President's Budget along with the appropriate authorization language.

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Where does the money to fund IIP initiatives come from?

Funding for IIP initiatives will be determined at the time of approval. The source will be either a reprogramming of current year funds or submission in the next year's President's Budget.

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