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Abstract:
The United States is reducing the size of its armed forces and is spending considerably less money on defense. This has provided a powerful stimulus to implement new 'business practices' designed to modernize operations and dramatically reduce costs while maintaining essential combat capability. Expenditures for medical supplies and equipment within the Department of Defense (DOD) represent a significant portion of the total expense of health care. As a result, DOD is implementing a new concept of providing medical supply support to military hospitals. This program is known as 'Prime Vendor. It relies on enhanced distribution means through commercial industry support and integrated logistics information technology. Preliminary analysis suggests that 'Prime Vendor' adequately addresses peacetime concerns; economy, effectiveness, and responsiveness. It is more difficult to determine how well it will provide effective mission support and sustainment in wartime. DOD and the Services must examine the linkage between CONUS hospital operations, deployment planning, industrial base preparedness plans, and industrial stock rotation plans to insure readiness and wartime sustainability while implementing commercial practices.
| Limitations: |
 APPROVED FOR PUBLIC RELEASE |
| Description: |
Study project |
| Pages: |
31 |
| Report Date: |
15 APR 93 |
| Report Number: |
A325562 |
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