House Armed Service Committee
Subcommittee on Total Force
Statement by Dr. William Winkenwerder, Jr.
Assistant Secretary of Defense for Health Affairs
March 27, 2003
Mr. Chairman, Distinguished Committee Members, it is a pleasure to have
this opportunity to address you, and to report on the Military Health
System, its significant accomplishments and the opportunities and challenges
that lie ahead.
I plan to outline an ambitious program for the coming fiscal year.
The budget put forward for the 2004 Defense Health Program again represents
a realistic assessment of our requirements, and the anticipated private
sector health care inflation rates, which do affect our program.
The President's budget request anticipates a 9 percent cost increase in
private sector health care costs for the Department, and requests a 15
percent growth rate for pharmaceutical costs.
Our experience in 2002 established our ability to manage our increased
responsibilities in a prudent financial manner. I am confident that
we will have a similarly well-managed defense health program in 2003.
In 2003, the Department's senior military medical leadership - the Surgeons
General of the Army, Navy and Air Force, and the Joint Staff Surgeon -
have been deeply involved in and expertly executing the operational missions
for which we exist. Their leadership has been instrumental in our
successful management of deployment health issues, dramatic decreases
in non-battle injuries and illnesses, and expert casualty care management.
Along with their operational focus, the Surgeons General have not wavered
from their efforts to make TRICARE work better for all of our beneficiaries.
As we established our 2003 - 2004 priorities for the Military Health
System, the senior medical leadership established a strategic plan for
serving our service members, their families, and the American people.
I recently met with medical commanders and senior staff from around the
world to discuss these priorities. Our theme - "Protecting
Our Forces, Supporting Our Families, Shaping Our Future" - also provides
a context in which to review our major initiatives and priorities in our
budget. This statement serves to outline the major priorities for
our military health system.
Protecting Our Forces
The fundamental mission of our military health system is medical readiness.
All that we do in military medicine flows from this primary responsibility
- to ensure our forces receive health support for the full range of military
operations to which they are called, and are maximally protected against
the most significant, non-conventional threats. In support of this
mission, we operate a large health care delivery system - and we endeavor
to foster, sustain and restore the health of all 8.7 million military
service members, retirees, and family members entrusted to our care.
Resumption of Anthrax Vaccine Immunization Program
In 2002, the Department of Defense (DoD), in close consultation and coordination
with agencies across the federal government, made significant advances
in protecting our military forces against the threat of bioterrorism.
In June 2002, we announced the resumption of anthrax immunization for
those forces at greatest risk. We also pledged support to the Department
of Health and Human Services (DHHS) and allocated a portion of DoD anthrax
vaccine to the DHHS for use in the event of a domestic crisis. To
date, more than 2 million doses of anthrax vaccine have been given to
more than 565,000 service members. We are working with DHHS and
other federal agencies to develop a next generation anthrax vaccine for
future use.
Initiation of Smallpox Immunization Program
In December 2002, President Bush announced the federal plan to resume
smallpox immunization for select first responders and for military service
members at greatest risk. Within days, DoD initiated smallpox vaccination
for our forces. The federal government made this decision with full
awareness that the smallpox vaccine has potentially severe side effects
in rare circumstances. We have vaccinated more than 350,000 service
members and instituted an aggressive safety program to both screen individuals
who may be at risk, and then closely monitor those service members who
have been vaccinated. I am pleased to report that we have seen only
a few significant or severe side effects, and all of these individuals
have been successfully treated and are returning to duty.
Our medical teams across the globe are providing first-hand evidence
of their clinical excellence in administering these vital programs. The
combination of these two vaccination programs are providing our forces
with superior protection, and offering an important deterrent to any enemy
who may consider using them.
Anthrax and smallpox are clear and lethal dangers to U.S. forces.
These immunization programs remain our highest bioterror priority and
are supported in the Fiscal Year 2004 President's budget request.
Of course, force health protection extends well beyond these vaccination
programs. There is a vast array of health protection measures being
employed today that provide layers of protection to our forces from chemical,
biological, radiobiological exposures. We are working closely with
the DoD Office of Chemical, Biological and Nuclear Defense Programs to
accelerate the most critical of these efforts.
Medical Surveillance
As U.S. forces deploy to more locations in the global war on terrorism,
we are acutely aware of the need to ensure we deploy healthy personnel,
closely monitor their health while deployed, and then reassess their health
upon redeployment to the United States. We are performing these vital
force health protection services through a variety of means.
Today's force health protection tools include a joint theater medical
surveillance program that enables commanders to identify, assess and execute
appropriate early intervention measures. In addition, these commanders
will have near real-time information on exposures or environmental hazards,
data on medical conditions and force health status, including immunizations
of US forces in the field. Our medical information specialists and
clinicians have teamed to execute a program in 4 months, originally scheduled
to be implemented in three years.
Other important force health protection tools include newly developed
policies and plans on pre and post-deployment health, patient movement
and tracking systems, personal protective equipment, improved training,
decontamination and environmental hazard sampling and assessment.
Chemical-Biological Warfare Defense -- Interagency Collaboration
We have also worked closely with our federal partners and improved our
collaboration with other agencies. We recently convened an interagency
workshop, together with US Northern Command, to identify how the medical
assets of the Department of Defense and NORTHCOM will integrate with federal
health leaders in the event of a national crisis.
In 2004, we will continue to bolster force health protection measures.
Anthrax and smallpox vaccination programs will continue. We will
upgrade our ability to monitor individual medical readiness by introducing
an individual metric for readiness. This composite metric will assess
vaccination status, currency of physical exams, availability of individual
medical equipment and a small selection of other critical indicators to
determine the immediate availability of a service member to deploy.
Improved medical detection and medical surveillance technologies will
be introduced to further enhance our "early warning" system,
particularly against biological threats so that preventive or treatment
measures can be more quickly implemented.
We are also interested in seeing passage of the Administration's BioShield
initiative. New authorities are needed, with appropriate safeguards,
to assure rapid and effective medical treatments can be introduced quickly
in response to weapons of mass destruction. The President's BioShield
initiative would increase the Food and Drug Administration's authority
to approve needed medical products in response to declaration of an emergency
issued by the Secretary of Health and Human Services that is based on
findings by the Secretary, the Secretary of Homeland Security, or the
Secretary of Defense.
Finally, while not part of the Defense Health Program budget submission
per se, I want to advocate on behalf of the Department's medical research
and development requirements. We continue to make important headway
in confronting a number of asymmetric enemy threats, particularly in the
areas of biological, chemical, and radiobiological warfare. The
research funded by the Department is providing essential information that
can lead to even higher levels of protection for our forces in medical
detection, surveillance, prevention, and treatment. In today's age,
this research has applicability for all of our citizens and the civilized
world.
Supporting Our Families
In order to sustain our medical readiness posture, as well as to attract
and retain the best qualified Americans for military service, we operate
a quality, world-wide health care system. Wherever we maintain medical
capability and capacity, whether through military hospitals and clinics
or contracted civilian services, our goal is a world-class health benefit
that serves the health care needs of our active duty service members,
retirees, the family members of both active and retired services members,
and survivors. Through the operation of a clinically challenging
medical practice, we ensure our health care providers and other medical
experts are best prepared for their operational mission.
TRICARE
With the essential support of Congress, TRICARE is one of the most comprehensive
health care benefits in the world. We continue to work hard to perfect
the implementation of TRICARE benefit enhancements enacted in 2001, such
as: extending eligibility for TRICARE Prime Remote to active duty
family members; introducing a prescription drug benefit and a TRICARE
benefit for military beneficiaries who are also eligible for Medicare.
Yet, there is more to do. In the coming year, we are introducing
new programs to improve patient safety and quality health care, to improve
customer service, particularly in the area of maternal health care, and
to improve access to health care for all beneficiaries.
Quality, Family-Centered Maternal and Child Health Care
The legislative requirement to eliminate the need for non-availability
statements for TRICARE Standard beneficiaries seeking private sector poses
a serious threat to our readiness mission. Our surgeons and medical
teams need continual on-the-job training to be effective in the field
and home. Quality can be harmed if medical personnel do not have
patients. Our budget proposes to bring back non-availability statements
for TRICARE. In addition, the Department is re-examining
our obstetric service product line. In this process, we have evaluated
the full-range of family-centered medical programs in obstetrics, gynecology,
and pediatrics. Our objective is to be the provider of choice for
our patients. We have established customer satisfaction standards
for world-class family-centered health care. We have communicated
with our medical facility commanders on these standards, and begun to
reach out to our beneficiaries to inform them of our standards, and of
our outstanding quality outcomes. Some of the initiatives we have
undertaken may take several years to meet - particularly in the area of
capital improvement requirements. But we are beginning now, and
we will measure our performance quarterly to ensure that this program
achieves our objectives for high patient satisfaction and sustained high
quality care.
Access to Care
To improve patient satisfaction, patient awareness, and ease access,
we unveiled two programs in 2002. TRICARE Online is one of our most
promising innovations to improve access to military health services and
leverages modern technology for use by all military beneficiaries, health
professionals and managers worldwide. It offers increased access
to care through online appointments, secure health data, and information
about all military medical facilities and providers. The pilot program
we unveiled in 2002 has proven extremely successful and we are proceeding
with worldwide deployment by the end of 2003.
A second initiative being tested at MTFs around the world is the "Open
Access" initiative - in which appointments are made available for
TRICARE Prime enrollees on the same day in which they call, whether the
appointment need is acute or routine. We are witnessing both improved
patient and provider satisfaction with this initiative, and are actively
supporting its export to other facilities in our system.
We remain vigilant regarding access to care for all of our beneficiaries
- Prime, Extra and Standard. We continuously monitor the adequacy
of TRICARE networks, and we are particularly focused on this issue as
military medical deployments increase and our direct care system is required
to refer care to the civilian network. We are pleased that the percentage
of health care claims filed by participating providers continues to increase
- now 97% of all claims are filed by the provider, the highest number
ever reached in TRICARE or the previous CHAMPUS program. We are
committed to sustaining this level of network and/or participating provider
availability.
Quality and Patient Safety
We recently restructured our Patient Safety Program. Our objectives
for the Patient Safety Program involve improving coordination of patient
safety activities across the three Services, with the Armed Forces Institute
of Pathology (AFIP), the Uniformed Services University of the Health Sciences
(USUHS), and the TRICARE Management Activity providing essential integrating
and leadership functions. We will align our patient safety data
with national standards; to increase our reporting of near misses from
Military Treatment Facilities; and to create a culture of disclosure and
reporting to improve systems within healthcare. Surrounding these
objectives, we intend to increase patient awareness and involvement in
our patient safety initiatives.
One of the most significant advancements we have made in the area of
patient safety was achieved through the deployment of the Pharmacy Data
Transaction Service (PDTS). The PDTS provides real-time integration
of individual beneficiary prescription drug profiles from MTF, mail order
and retail pharmacy points of service. In the brief time since its
automation, PDTS has already alerted TRICARE providers and patients to
more than 50,000 potentially life-threatening drug interactions.
It was recognized recently by President Bush as one of the most outstanding
innovations in all of the federal government.
Reserve Health Care Support
The Department has introduced several demonstration programs since September
11, 2001 to provide an easier transition to TRICARE for the growing number
of reserve component members and their families who are called to active
duty. These demonstrations have helped to preserve continuity of
medical care and reduce out-of-pocket costs for these families.
We are revising our administration of reserve benefits to ensure that
families are not arbitrarily excluded from benefits that were intended
for them. We have updated our policies to ensure that family members
of reservists who are activated are eligible for TRICARE Prime Remote
benefits when they live more than a one hour's commuting distance from
a military medical facility. In addition, reservist families can
enroll in TRICARE Prime if a member is activated for 30 days or more.
TRICARE For Life - Medicare-Eligible Health Care Fund
Of the important initiatives introduced in the past several years, the
TRICARE for Life legislation also required a new method of accrual financing
to support the program. The first year's operation was funded from
the Defense Health Program appropriation, providing needed time to establish
and transition to the DoD Medicare Eligible Health Care Fund. We
have worked closely with the Defense Accounting and Finance Service and
the Department's Comptroller to determine accounting and finance procedures
for program implementation. We are pleased to note that the GAO
reviewed our program and issued their report that concluded "DoD's
regulations satisfy the legislative criteria for transfers from the Fund
and appear to be adequate and provide a framework for the transfers to
be implemented upon activation of the Fund."
Shaping Our Future
TRICARE continues to set standards as one of the premier health plans
in the world. While we are proud of our accomplishments in TRICARE,
we also recognized that improvements can be made in the administration
of this program. This year is an important transition year for TRICARE
and we have begun the transition process already.
New TRICARE Contracts
In August 2002, we issued Requests for Proposal for a new generation
of TRICARE contracts - simpler, more customer-focused, easier to administer,
and with greater local accountability for performance. We reduced
the number of TRICARE regional contracts from seven to three, and we reduced
the number of TRICARE regions from eleven to three.
The contracts include incentives for contractors to utilize local military
medical facilities, and to increase patient satisfaction. We are
aligning our incentive structure so that Service medical departments and
local military medical commanders are similarly rewarded for cost-effective
decisions to optimize use of their medical facilities.
In January 2003, the bidding process reached a milestone when competitive
bids were received for each TRICARE region. We have already accomplished
a major objective by ensuring market competition for each of the three
regional contracts.
We have also simplified our TRICARE contracts through selective identification
of functions and services that can be more easily administered through
single, nationwide contracts, or through more focused, local solutions.
For example, local MTF commanders sought, and we provided more direct
control of contracting for local support functions such as appointing
and resource sharing with civilian providers for support to military hospitals
and clinics.
We have competed and awarded a national mail order pharmacy contract
that began March 1, 2003. This will be followed by a single national
retail pharmacy contract that will shortly be competed. The establishment
of national pharmacy services will enhance our own management of this
high-cost service, and enhance customer service for patients traveling
in different regions are requiring short-notice prescriptions.
TRICARE Governance
The most important element of our TRICARE transition, however, is our
effort to ensure a seamless transition for our patients. The establishment
of a new governance model for TRICARE that focuses on local health care
needs will best support this transition.
Over the next several years, our Lead Agent offices around the country
will have a critical role in this transition. For 2003, we have
fully operational TRICARE contracts that continue to require the full
efforts of our Lead Agents staffs in coordinating and overseeing contractor
performance. In 2004, those contracts will still be operational
for several months. The transition issues between contractors will
require intensive oversight and coordination that will largely be conducted
by Lead Agent staff. As the contract transition passes, there will
be a migration of Lead Agent staff responsibilities from regional matters
to local health care market management. Our Lead Agent/Market Management
offices are all located in areas of significant military medical capability
as well as sizable beneficiary population needs, and thus represent areas
of importance for the Department for the foreseeable future. The
Lead Agent/Market Manager duties may differ in some respects but the need
for experienced health care executive staff with knowledge of local market
circumstances will remain.
To further our ability to best deliver services in local health care
markets, the Department is studying health care delivery in those markets
served by more than one military medical treatment facility. Our
objective is to identify business practices that allow us to sustain high
quality health care programs, to include graduate medical education programs,
and ensure patient satisfaction with access to these services.
Metrics
The DoD medical leadership has established a long-term strategic plan,
using the Balanced Scorecard model. As part of this strategic plan,
we have established a series of metrics and performance targets for our
health system. Although there are a number of important measures,
we have selected three indicators that will receive great visibility throughout
our system. These indicators are:
An Individual Medical Readiness metric to determine individual service
member's medical preparedness to deploy. This is a new, joint service
metric that promises to provide valuable information to both line and
medical leadership.
Patient Satisfaction with Making an Appointment by Phone. While
we will measure a number of patient satisfaction indicators with access
to health care, we are providing heightened attention to the specific
indicator of phone access, which we have found to be a significant determinant
of overall satisfaction with access. We will also measure ourselves
against civilian benchmarks on this item.
Patient Satisfaction with the Health Plan. This comprehensive review
of patient satisfaction with their health plan provides a perspective
on our overall performance on behalf of our patients. Similar to
the previous metric, we will again compare ourselves to civilian benchmark
standards.
Recruitment and Retention of Quality Medical Professionals
Ensuring that we maintain skilled staff across the MHS remains one of
our top priorities in DoD. There are several avenues through which
we obtain talented health care professionals. The Uniformed Services
University of the Health Sciences (USUHS) is dedicated to the preparation
of health care professionals to serve, lead and educate members of the
military health system. Its military unique curricula and programs,
successfully grounded in a multi-service environment, draw upon lessons
learned during past and present-day combat and casualty care experiences.
In addition to its education of military health professionals, USUHS makes
available a significant number of courses to health professionals across
the nation.
We also seek to recruit and retain health professionals through a variety
of educational offerings and financial incentives. I am pleased
that we were able to use Critical Skills Retention Bonuses this year to
retain a significant number of medical personnel in critical specialty
areas. In the coming year, working closely with Congress, we hope
to further streamline our medical professional bonus programs and provide
greater flexibility in targeting financial incentives to those serving
in our most critical and at-risk areas.
Using Information Technology to Improve Patient Care
The Military Health System is incorporating new technology into all aspects
of our operations, and the infrastructure we are putting into place now
and over the next two years will put the MHS in the forefront of health
care systems worldwide. Several of these information systems deserve
special recognition.
The Composite Health Care System II (CHCS-II) is the military's electronic
computer-based patient record -- a clinical information system that
will generate, maintain and provide secure online controlled access to
a comprehensive health record for service members, their families, retirees,
their families and other eligible beneficiaries. This system will
enable population health reporting by storing all patient data in a central
location; it will maintain the integrity of patient data and standardization;
and it will provide clinical functionality for the Theater Medical Information
Program. CHCS-II has passed several important program milestones
and is being deployed to additional sites now. Following one more
evaluation of its performance, we will make a decision on worldwide deployment
in late Spring 2003.
The Defense Medical Logistics Standard Support program provides the right
medical product at the right price at the right place and at the right
time to our health care providers worldwide in peace and in war.
This system has proven its value in supporting health care providers in
a timely manner, and in eliminating the need to maintain large inventories
of medical products.
While we are proud of our significant advances in using technology, trust
remains the bedrock of a successful doctor-patient relationship and the
expectations that our service members, retirees and families rightly have.
Electronic sharing of health care information provides great advances
in patient safety, in reduced errors in claims processing, and in improved
customer service. But, there are risks in electronic communications
that must be identified and measures implemented to prevent or manage
those risks. The military health system information assurance program
vigilantly protects patient information. We are proceeding with
the appropriate use of technology, backed by an information security program,
recently bolstered to standards beyond those seen commonly in the private
sector, which protects the privacy and confidentiality of all patient
information.
Improving Collaboration with the Department of Veterans Affairs
Just as we have done in the area of force health protection and medical
readiness, we are also pursuing a more collaborative approach with our
federal partners in our health care delivery system. In any discussion
of collaborative initiatives, the DoD - VA relationship is a frequent
and important topic.
We have established a Joint Executive Committee, led by the Under Secretary
of Defense for Personnel & Readiness, and the Deputy Secretary of
the Department of Veterans Affairs. We have established a joint
DoD/VA strategic plan and expect that this will be our roadmap over the
next few years to develop solid goals and performance measures and serve
to further institutionalize our relationship
The Joint Executive Council oversees the Health Executive council and
the newly established Benefits Executive council. Together these
have:
Concluded an agreement establishing a single discounted rate for the
provision of medical services between DoD and VA. We believe this
will encourage more efficient sharing of resources
Initiated a system for the transfer of protected electronic health information
so we can send veterans' service health records to the VA electronically.
By 2005, our plan will allow physicians in both organizations to access
health data of joint beneficiaries or individuals at joint venture sites.
Facilitated procurement sharing agreements under which we either buy
together, or one uses the preferential procurement arrangements of the
other (as we are doing in pharmacy)
Working with VA so that DoD's Defense Enrollment and Eligibility Registration
System (DEERS) can be used to allow for a seamless transition from active
duty to veteran status
We are collaborating on future facilities planning, through a coordinated
approach to our BRAC process and VA's infrastructure realignment process
"Capital Asset Realignment for Enhancement of Services (CARES).
We are excited about new models for facility planning being considered.
Conclusion
Mr. Chairman, our responsibility to provide a world-class health system
for our service members, our broader military family, and to the American
people has always been recognized by the Congress, and on behalf of the
men and women who serve in the US Armed Forces, I am very grateful for
your past and future support of the Military Health System.
I look forward to working closely with you and your staffs in the coming
weeks and months to provide whatever information you need to better assess
our ability to execute our mission on behalf of the American people.
Thank you.