The average U.S. hospital is more than 27 years old and most major military supported healthcare facilities are more than 55 years. The Department of Defense (DoD) has embarked on the biggest strategic implementation program of military hospital and clinic construction in recent history.
Military healthcare serves a military population of more than 9.2 million. This includes active duty personnel and families, retirees and their families and eligible veterans. The Department's healthcare is provided at more than 530 Army, Navy, and Air Force military treatment facilities worldwide.
Programs are primarily operated through the DoD and the Department of Veterans Affairs (DVA). The DoD covers active duty service members and retirees from all branches of the military and their families. The DVA makes provision for veterans and their eligible family members.
Challenges center around the provision of a complex healthcare environment. There is increased emphasis on best practices, while giving priority to military readiness. Rising costs are compounded by the expansion of benefits and the increased use of benefits by military retirees and the Reserve military components. Continued healthcare inflation, with TRICARE premiums and cost-sharing provisions that have remained static for nearly ten years, has contributed to financial pressures.
Over the next five to seven years, the U.S. Army Medical Department (AMEDD) is entering the largest period of facility expansion in its history. New healthcare facilities and medical research laboratories are being generated by DoD Transformation initiatives, together with Base Realignment and Closure (BRAC), Grow the Army (GTA), Host Nation, Medical Military Construction (MILCON) (PDF 7.10 KB) and continuing Sustainment, Restoration and Modernization (SRM) requirements.
The projects require various degrees of initial outfitting and transition services. Methodologies must underpin the increased volume and the short timescales of these turn-key facility support service functions. Initial Outfitting and Transition (IO&T) offers total turn-key program/project management and contracting support for the equipping and the transitioning of staff and patients nationwide and overseas.
The methodology around IO&T has been refined over the past two years and provides the client with a more integrated and streamlined process. This is serving the military health system well and the government may adopt similar measures for capital programs for other departments. We might also see the private healthcare sector using this model for its development programs.
Over the past year, Faithful+Gould has been supporting several DoD multi-million dollar healthcare facilities.