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Military Health System Transformation

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. >>Learn More About MHS GENESIS

Military Treatment Facility Transition

Market Structure

DHA is establishing 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. While the transition of the administration and management of military hospitals and clinics from the Military Departments to Defense Health Agency was paused in 2020 due to the COVID-19 pandemic, transition activities have resumed, and the fifth market, the Tidewater Market was fully established on April 19, 2021.

Infrastructure Changes

Congress directed the Defense Department to assess existing hospital and clinic infrastructure and determine whether some facilities should be realigned or restructured. The Office of the Assistant Secretary of Defense for Health Affairs is now conducting the required analysis in conjunction with the Military Departments, DHA and the Joint Staff.  It’s expected that some facilities may be re-scoped, some may have capabilities reduced, while others may expand. DHA will be responsible for implementing the final determinations made by the Department and is working with the Military Departments to ensure that all beneficiaries continue to enjoy access to high-quality care.

Manpower Changes

The Department’s FY20 budget proposal recommended the realignment of about 17,000 uniformed billets from the MHS into operational forces. 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.

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