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Defense Health Care: Despite TRICARE Procurement Improvements, Problems Remain

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Report Type Reports and Testimonies
Report Date Aug. 3, 1995
Report No. HEHS-95-142
Subject
Summary:

As federal and state medical programs move to managed care, competitively bid contracting with private health care firms is being used more and more. In the federal sector, the Defense Department (DOD) has been a leader in the use of these contracts. As part of its introduction of a nationwide management health care program for the military, known as TRICARE, DOD has begun to award large, complex, competitively bid contracts to support and supplement the health care provided in military facilities. These five-year contracts are estimated to cost a total of about $17 billion. In response to concerns about DOD's difficulties with an early contract award covering California and Hawaii for which GAO sustained a protest of the award, this report reviews (1) procurement process problems identified by the bid protest experiences, (2) DOD's actions to improve and help ensure the fairness of the procurement process, and (3) what problems and concerns remain and whether further steps are needed.

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