Skip Navigation Skip to Sitemap

IIP - Overview

IIP Process BrochureBackground

The Military Health System (MHS) is $42 billion dollar enterprise within the Department of Defense (DoD), consisting of 63 military hospitals, over 500 military health clinics, and an extensive network of private sector health care partners, which provides medical care for over 9 million beneficiaries and active duty service members. The MHS’ mission is:




To enhance DoD and our Nation's security by providing health support
for the full range of military operations and sustaining the health
of all those entrusted to our care.


In carrying out this broad mission, however, the MHS has experienced growth in the cost of providing care that has outpaced that in the private sector. These rising costs, coupled with recent expansions to the pool of eligible beneficiaries, have led health care to grow from 6.1% of the Department of Defense’s budget in FY 2000 to 8.8% in FY 2008.

The DoD has recognized this fiscal challenge and has introduced the Innovation Investment Process (IIP) as a means to generate new savings within the MHS. Via the IIP, senior MHS leaders are selecting large-scale initiatives for implementation that will generate significant efficiencies within the MHS.

A key component of the IIP is its use of private sector methodologies to evaluate and select initiatives for funding. A contractor with expertise in health care analysis has been brought in to develop and implement this methodology, thus minimizing the burden on MHS personnel. The use of private sector practices ensures that funded initiatives will have a positive return on investment—a hallmark of private-sector decision making processes—while also taking into consideration the initiatives’ estimated risk and effect on quality of care, medical readiness, beneficiary/provider service and satisfaction, and resource efficiency. The methodology also will take into account the attributes of the MHS that are unique.

A Board of Directors (BoD) oversees the IIP activities and makes the final selection of initiatives for funding. The Assistant Secretary of Defense for Health Affairs, chairs the Board of Directors. Other Board members include the Service Surgeons General, Joint Staff Surgeon, and senior leadership from HA/TMA, the Office of the Secretary of Defense, Comptroller, and the Office of Management and Budget. View the Leadership page for further information on the members.

The Board of Directors is supported by the Proponency Group. Proponency Group members are appointed by the BoD and are responsible for reviewing ideas and concepts that are submitted and recommending to the Board those ideas which should be developed into full-blown initiatives. They work in partnership with the contractor to develop comprehensive business case analyses and implementation plans for initiatives selected for consideration by the BoD. View the Proponency Group page for further information on its members.

Opportunities to Contribute

Currently, ideas are being accepted for consideration in the IIP. Anyone may submit an idea and ideas accepted may include ones that have been substantially researched or brand new.

Ideas may be submitted through this website on the Submit a Concept page. Once submitted, ideas will feed directly to the Proponency Group/Board of Directors for analysis and will not be visible to others.

Related Documents