OMB Circular No. A-76 : efficiency review : and performance measurement of the Department of Defense health care delivery system
Hetsko, John A.
Moran, Raymond L.
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Each year the Department of Defense (DOD) is exposed to great pressure from the public sector and Federal Government to save money and to be efficient. The Productivity Program Office of Assistant Secretary of Defense (Manpower, Reserve Affairs and Logistics) brings together approaches for cost containment and organizational efficiency. The Military Health Services System (MHSS) has been notorious for its assumed inefficiency. This apparent "waste" gets attention when health costs go up as productivity trends downward when measured by the Composite Work Unit (CWU) . This thesis examines the CWU and a proposed Health Care Unit (HCU) . Both measures were discussed and analyzed in an attempt to determine the reliability of each. The Commercial Activities Program and the Efficiency Review Program are presented together with some limited analysis. A proposed performance indicator is presented offering potential for productivity measurement of the MHSS. Conclusions are drawn to summarize the foregoing topics and recommendations are made regarding the Efficiency Review Program, the proposed MHSS productivity measure, and incentives are presented offering potential for efficiency improvement for military health care delivery.
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