Comparing the Costs of Military Treatment Facilities with Private Sector Care
INSTITUTE FOR DEFENSE ANALYSES ALEXANDRIA VA ALEXANDRIA
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In 2016, the Congress expects to consider proposals for modifying how the Department of Defense provides health-related services to its eligible beneficiaries. It is important to understand the current cost of the military healthcare benefit and its component elements when considering how the benefit can be modernized and made more sustainable. IDA estimated the cost of delivering care in military treatment facilities MTFs and compared those costs with their private sector counterparts. This paper compares the actual cost of producing MTF workload with an estimate of what it would have cost if the same level and volume of workload were performed in the private sector. The results show that, with a few exceptions, almost all MTFs have higher costs than their private sector counterparts.