As DoD shifts its basis for resourcing MTFs from output workload to efficiency DRGs and eventually to a prospective payment system capitation, hospital commanders will have to be more aggressive in their efforts to improve resource management. Utilization Management UM will become an important tool for all military hospitals. UM has been widely adopted in the last five to ten years by most payers and providers of health care in the civilian sector as an effective way to help contain costs. However, DoD UM program guidance in the direct care system has been very limited. The purpose of this study was to develop a UM program model for MTFs. The model can be used by hospital commanders and UM program managers to evaluate and make recommendations to their UM programs.