Government Health Care Contract Incentives: Making Managed Health Care Work in Federal Government Procurements

摘要

Contracting for managed health care systems is a complex undertaking. The current TRICARE contracts captured all the important parts of the system and ensured detailed compliance with the many system requirements. However, the TRICARE contracts do not allow for system changes and innovation because the specific contract requirements make change almost impossible. A compelling alternative to DoD's current, limited strategy of using traditional contract structure and type exits. Performance-based contracting with incentives is the best alternative. No legal or regulatory requirements prevent shifting to such a structure. Policy and organizational inertia prevent the shift. This thesis will explore and recommend contracting alternatives for government managed health care contracts. It recommends moving beyond the current strict compliance contracts by analyzing more outcome-oriented efforts that foster an incentive to excel and reward innovation.