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DoD Estimates More Than $2B in Savings from New Healthcare System

StethescopeonKeyboardThe Defense Department has estimated $2.4 billion in total savings over six years from integrating its healthcare system under the new Defense Health Agency, Nextgov reported Tuesday.

Bob Brewin writes Air Force Lt. Gen. Douglas Robb will lead 1,039 employees at the new agency tasked with providing shared services covering Tricare health plan, information technology, medical logistics and facilities management.

The DHA will begin operation on Oct. 1 in order to reduce risks and service interruptions to customers, according to the report.

The DoD hopes to save $787 million by centralizing the Tricare plan and replacing the walk-in service centers with toll-free call centers and Internet resources, reports Nextgov.

Brewin writes the agency plans to unify the management of hospitals, medical centers and dental clinics under the Military Health System for a potential $590 million in savings over six years.

The plan also projects $672 million in savings from consolidating IT services for 230,000 MHS users and $353 million from medical logistics supplies, the Nextgov reports.

Medical logistics supplies include items such as gauze tape, operating room gowns, knee braces, syringes, sponges and blood collection tubes.

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