Military health care system: comparing obstetrics costs between a military treatment facility and CHAMPUS

Abstract

For more than three decades, two systems of programs have provided health care for military beneficiaries: (1) the direct care system, whereby beneficiaries obtain health care services from military treatment facilities (MTFs) and (2) CHAMPUS (Civilian Health and Medical Program of the Uniformed Services), a health program in which beneficiaries receive care from civilian facilities. The high cost to DoD of supplying inexpensive medical care, as well as concern over timeliness of service, has prompted many suggestions for reforming the military health care system. Based on the above, the objective of this research is to compare costs between a military treatment facility and CHAMPUS and to determine whether a given MTF can provide inpatient care to its beneficiaries at lower cost than through CHAMPUS. By comparing MTF and CHAMPUS costs, a given MTF can identify those specialty areas in which to reduce costs either by increasing workload (use of recapture and/or normal increase of appointments) or increasing referrals to outside health care providers.