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[H.A.S.C. No. 96-70]

MILITARY HEALTH CARE DELIVERY

INCLUDING

CHAMPUS AND INQUIRY OF U.S. NAVAL
HOSPITAL, OAK KNOLL, CALIF.

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95TH CONGRESS

MILITARY PERSONNEL SUBCOMMITTEE
RICHARD C. WHITE, Texas, Chairman

G. V. (SONNY) MONTGOMERY, Mississippi
ABRAHAM KAZEN, JR., Texas
ANTONIO B. WON PAT, Guam
THOMAS J. DOWNEY, New York
CHARLES WHITLEY, North Carolina
CHARLES E. BENNETT, Florida
LUCIEN N. NEDZI, Michigan

DAVID C. TREEN, Louisiana
MARJORIE S. HOLT, Maryland
ELWOOD H. (BUD) HILLIS, Indiana
DAVID F. EMERY, Maine

WILLIAM H. HOGAN, Jr., General Counsel
G. KIM WINCUP, Counsel

96TH CONGRESS

MILITARY PERSONNEL SUBCOMMITTEE

RICHARD C. WHITE, Texas, Chairman

ELWOOD HILLIS, Indiana
LARRY J. HOPKINS, Kentucky

G. V. (SONNY) MONTGOMERY, Mississippi MARJORIE S. HOLT, Maryland
ABRAHAM KAZEN, JR., Texas
ANTONIO B. WON PAT, Guam
LUCIEN N. NEDZI, Michigan
BILL NICHOLS, Alabama

WILLIAM H. HOGAN, Jr., General Counsel
G. KIM WINCUP, Counsel

WILLIAM DAVID PRICE, Professional Staff Member
DONALD L. CAMPBELL, Professional Staff Member

(II)

HOUSE OF REPRESENTATIVES,
COMMITTEE ON ARMED SERVICES,

MILITARY PERSONNEL SUBCOMMITTEE,

Washington, D.C., Tuesday, May 17, 1977.

The subcommittee met, pursuant to notice, at 9:15 a.m., in room 2212, Rayburn House Office Building, Hon. Richard C. White (chairman of the subcommittee) presiding.

Mr. WHITE. The subcommittee will come to order.

Good morning. Today we commence a series of hearings to inquire into all aspects of military health care, including the Civilian Health and Medical Program of the Uniformed Services, commonly known as CHAMPUS.

Since the last hearings on health care delivery, which were held by the Military Personnel Subcommittee in the fall of 1974, the number of complaints and expressions of concern received by the committee have continued and at an increased pace.

We have received a strong signal from members of the active service and their dependents, as well as from those in the retired community directly and through some service organizations. The retired group has been somewhat more vocal since their numbers continue to increase and the ability of military medical facilities to care for their health needs continues to weaken. Further, costs for civilian health care are escalating at an alarming rate and it follows that such costs are reflected in the financial experience of those who use CHAMPUS.

We are aware of the continuing problem in all of the services relative to the recruitment and retention of medical officers and of a similar problem, in varying degrees, for dental officers. For example, recently, the Investigations Subcommittee heard extensive testimony, some of which was in sharp disagreement between the Office of the Secretary of Defense on the one hand and the Surgeons General on the other, with regard to expectations for medical officer procurement. Those hearings were held in connection with the attempted closing of the Uniformed Services University of the Health Sciences by the Secretary of Defense through the budget process. Fortunately, the Congress mandated otherwise.

In addition, the subcommittee is well aware of the management problems that have plagued CHAMPUS and some of the fiscal agents over recent years and the attendant discrepancies that have resulted in the administrative approval of some benefits that were not within the scope of the legislation as originally considered in this committee and finally enacted in 1966. Although we recognize that many of those deficiencies have been remedied, we wish to look into the accomplishments to date and what is in store for additional improvement as we look ahead.

Our purpose at the outset is to conduct an inquiry into the entire health care delivery system, and conclude with appropriate findings and recommendations that may well include legislative proposals. In

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