Resource Sharing Analysis Between Brooke Army Medical Center, Wilford Hall Medical Center, and the South Texas Veterans Health Care System

Abstract

Abstract : With a combined annual budget of $67+ billion, this study examines the challenges the Department of Defense (DoD) and the Department of Veterans Affairs (VA) have as health care providers to 12 million enrolled beneficiaries. Despite different missions, there are ways they can collaborate to reduce costs, increase services and improve the quality of care. FY 2004 Defense Healthcare Program (DHP) $15.7 billion budget has shortfalls of $200+ million. Driven by fiscal constraints, this study's objective was to find a possible resource sharing agreement that would save federal funds while maintaining quality health care at Brooke Army Medical Center (BAMC), Wilford Hall Medical Center (WHMC) and the South Texas Veterans Health Care System (STVHCS). After analyzing FY 2002 and FY 2003 inpatient surgery data, Cardiovascular and Thoracic Surgery high costs and low volume was chosen to analyze at the DRG level to find possible savings. Initial study shows that for certain DRGs, STVHCS and WHMC were more efficient than BAMC. A thorough business case analysis needs to be done to determine if a resource sharing agreement for Cardiovascular and Thoracic Surgery would actually save the projected $4 million in federal funds annually found in this study.