1 Ready Medical Ready Medical Medically Ready DHA Presence Across - - PowerPoint PPT Presentation

1

Ready Medical

Ready Medical

Medically Ready

DHA Presence Across the Globe

Supporting COCOMs and Services

6

55 55 H Hospital itals  36 360 0 Outpa patient tient Cl Clin inic ics

9.4M  1.5M Benefi eficia ciarie ies In Un Unif iform rm

9.4M  2.4M Benefi eficia ciarie ies Famili ilies es

9.4M  5.4M Benefi eficia ciarie ies Retir irees es/Fa Fami milie lies

Joint Concept for Health Services

Chairman, Service Chief Endorsed Doctrine

• “Concept encompasses

the global employment of joint operational health services and the idea of interoperable Service capabilities guided by common standards and procedures…The need for integrated medical support that keeps pace…to support Globally Integrated Operations is clear.”

 Chairman, Joint Chiefs of Staff

11

Today’s DHA:

How We Got Here

DoD TaskForce

• n MHS

Governance

September2011

DEPSECDEF Planning Memo

March2012 Directed planning for DHA implementation March2013 Directed implementationof DHA Dec 2016 Directed implementationof Broader Responsibilities

DHA Planning WG Report

November2012 Provided DHA and Shared Services implementation plan for DEPSECDEF approval

NDAA2017

Recommended DHA model for MHS Governance September 2013

DODD 5136.13 DEPSECDEF “Nine Commandments” Memo

Establishes the DHA

12

FY 17 National Defense Authorization Act

The “Why”

“The conferees believe that

• the current organizational structure of the

military health system

• essentially three separate health systems each

managed by one of the three Services –

• paralyzes rapid decision-making and stifles

innovation in producing a modern health care delivery system …

• …that would better serve all beneficiaries.”

13

FY 17 National Defense Authorization Act

The “Why”

“…a single agency responsible for the administration of all MTFs would

• best improve and sustain operational medical

force readiness and the medical readiness of the Armed Forces,

• improve beneficiaries’ access to care and the

experience of care,

• improve health outcomes,
• and lower the total management cost of the

military health system.”

14

FY 17 National Defense Authorization Act

The “What”

“The Director of the Defense Health Agency, beginning October 1, 2018, to take responsibility for the administration of each MTF, including all matters with respect to: 1) budget; 2) information technology; 3) health care administration and management; 4) administrative policy and procedure; 5) military medical construction and 6) any other matters the Secretary determines appropriate ...[and] would require the establishment of a professional staff within the Defense Health Agency to provide policy, oversight, and direction of all matters related to the administration of MTFs.”

15

SECDEF Mattis Memo (17 Feb 2017)

Department Leadership Weighs In

DoD Deputy Chief Management Officer

“Rebuild” “Reform”

16

SECDEF Mattis Memo (5 Oct 2017)

Department Lines of Effort

• Restore Military Readiness as We Build a

More Lethal Force

• Strengthen Alliances and Attract New

Partners

• Bring Business Reforms to the Department
• f Defense

“…budget discipline and effective resource management, develop a culture of rapid and meaningful innovation, streamline requirements and acquisition processes…”

17

Medical as Percent of DoD Budget

MHS Cost Growth Has Slowed, But We Are Not Complacent

Includes Normal Cost contributions to the Medicare Eligible Retiree Health Care Fund (MERHCF)

5.9% 8.1% 8.1% 7.5% 8.9%

9.3% 9.4% 9.1%

8.7%

9.4% 9.3% 9.7% 9.5% 9.7% 9.7% 9.2% 9.4% 9.3% 9.5% 9.7% 9.8%

0.0% 2.5% 5.0% 7.5% 10.0% $- $15 $30 $45 $60

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

% of DoD Topline $B Unified Medical Budget % of DoD Topline

18

Enterprise Support Activities (ESA)

10 1

TRICARE Health Plan

2

Pharmacy Programs

3

Education & Training Directorate

4

Research, Development & Acquisition Health Information Technology Facilities Budget & Resource Management Medical Logistics Procurement/Contracting Public Health

5 10 9 8 7 6

19

$147 $475 $1,004 $1,709 $2,535 $3,560 $242 $1,649 $2,262 $3,370 $4,578 $2,311 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 FY14 FY15 FY16 FY17 FY18 FY19

FY14-19 Net Savings ($M)

Initial Cumulative Net Savings Projection (3rd RTC) Actual (Cumulative) Forecast (Cumulative) POM Booked Savings (Cumulative)

Enterprise Support Activities

Beat FY15 Expectations, Beat FY16 Expectations

20

Health IT

Fewer Systems, Streamlined Management

$(100) $- $100 $200 $300 $400 $500 $600 $700 FY14 FY15 FY16 FY17 FY18 FY19 Net Savings ($M) Actual Savings FY14-17Q3 (Cumulative) Initial Projections FY14-19 3rd Report to Congress (Cumulative) POM Booked Savings FY15-19 (Cumulative) Forecast (Cumulative)

Health IT (J-6) Shared Service Net Savings and Reductions ($M)

21

[Use slide (pics) to answer question – Why am I here?] $4.6B investment for DoD Talk to: Complex Acquisition, IT, and FUNCTIONAL transformation

[DoD EHR in News]

MHS GENESIS

Complex Change Effort

First Major Upgrade in > a Decade

50 System s 50+ legacy systems to 1

Worldwide Deployment Many Stakeholders

23

• In April/May 2015 DoD leadership directed a ZBR to evaluate the

existing and planned MHS IT investments in FY16, FY17, and out years of the Future Year Defense Plan.

• Comprehensive examination of all IT investments used to support

MHS functions, irrespective of funding source or implementation

• rganization
• Definition: Zero-based budgeting starts from a “zero base”, every

function within an organization is analyzed for its needs and costs

Zero Based Budget Review (ZBR) Overview

24

MHS IT Management Reform Additional Opportunities

• Further rationalization of the IT portfolio (applications) across

the Services and DHA

• Continued implementation of the Medical Community of

Interest (MED-COI)

• Continued implementation of NDAA 2017 further consolidation
• f MHS IT in support of managing the MTFs
• Support of MHS Genesis deployment and sustainment
• Cybersecurity implementation based on the DoD plan

25

Key Takeaways

• Organizational Big Rocks:
• TRICARE – January 1, 2018
• MHS GENESIS Deployment
• NDAA Implementation
• The Future Picture:
• Unwavering focus on improved Readiness
• Increased Quality and Safety
• Greater Efficiency…without sacrificing effectiveness!

26