department of defense agency financial report fiscal year 2012

Department of Defense Agency Financial Report for FY 2012
The MHS is implementing the “medical home” concept throughout the direct care
system. With the medical home, the patient will have more direct access to a medical
team that is equipped to recognize potentially unhealthy behaviors and has the ability to
intervene early. In addition, management needs to ensure nonmedical alternatives such
as recreational and athletic facilities are in adequate condition and available to military
community as well as cessation programs for unhealthy addictive behaviors such as
cigarette smoking and alcohol use. The MHS fully supports the National Prevention
Strategy to support better health behaviors and overall fitness. Although the MHS goal
was not attained, cigarette use among Active Duty forces decreased from FY 2010 to
FY 2011. The MHS has actively committed to supporting the National Partnership for
Patients initiative with the Department of Health and Human Services to improve care,
transition, and prevention of harm during treatment. The two goals of this partnership
are “keeping patients from getting injured or sicker” and “helping patients heal without
complication.”
5-1C. Medical Readiness Department Response
The Department concurs with the IG’s assessment. Through its initiative process, the
MHS has chartered a new population health working group to specifically address the
challenges of providing nonmedical alternatives for changing unhealthy behaviors, such
as those leading to obesity and tobacco use. Additionally, the workgroup is tasked with
the development of an Annual Health Assessment in the form of an intelligent
questionnaire integrated into the patient workflow using existing technologies (e.g.,
Armed Forces Health Longitudinal Technology Application workflows, secure messaging).
The health assessment will also draw from available clinical data and will provide
quantitative and qualitative data about the wellness state of our beneficiaries.
Additionally, the health assessment will support a personal prevention plan, providing
specific feedback to the beneficiary to assist in altering unhealthy behaviors and provide
an objective measure of the effectiveness of both the nonmedical and medical programs
related to the wellness and health of our beneficiary population. The working group also
is tasked with developing and monitoring pilot programs to address obesity and tobacco
cessation through the expansion of wellness programs delivered on our bases, in
facilities such as the recreation centers, and virtually through coaching programs
delivered wherever they are required. Through the study of these pilot programs,
combined with objective data from the health assessment, we will be able to tailor the
most effective solution possible across the entire military health system.
5-2A. Cost Containment IG Summary of Challenge
The MHS must provide quality care for approximately 9.7 million eligible beneficiaries
within fiscal constraints while facing increased user demands, legislative imperatives,
and inflation, which makes cost control difficult in both the public and private sectors.
Over the past decade, health care costs have grown substantially, and MHS costs have
been no exception. The DoD budget for health care costs was approximately $53 billion
in FY 2012, an increase of approximately 74 percent since FY 2005. The MHS costs have
more than doubled, from $19 billion in FY 2001 to the Department’s request of
$48.7 billion for FY 2013. With these costs increases in mind, the Department proposed
to implement a modest increase to enrollment fees while also making small adjustments
to retail and mail order pharmacy co-pays. Another part of the challenge in containing
health care costs is combating fraud. Health care fraud is among the top five categories
of criminal investigations of the DoD IG’s Defense Criminal Investigative Service,
representing 12.5 percent of the 1,862 open cases at the beginning of FY 2012.
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Addendum A