An Assessment of Selected Performance Outcomes Associated with the DoD Capitation Budgeting Demonstration (Pilot) Project (1978-1981).
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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In the early 1970s, rising military health care costs led to congressional interest in alternative health care delivery systems wherein efficiency and cost containment had been successfully demonstrated. As a result of a recommendation of the Military Health Care Study 1975, DOD developed and implemented a pilot capitation budgeting CB resource allocation system during 1978-81. During the subsequent evaluation, a contractor determined that the tested methodology did not result in significant improvements over the traditional budgeting system. Consequently, the demonstration was terminated. This thesis independently assesses the extent to which results of the demonstration project were predictable. On the basis of theory and experience, a conceptual model for CB was constructed. Selected Pilot Project performance features and design elements were assessed against that model. The study concludes that the performance outcomes associated with the Project were consistent with project design and conduct limitations, and that a decision regarding the employment of CB in the Military Health Services System MHSS should not be based on project results. Author
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