PILOT PROGRAM FOR HEALTH CARE DELIVERY.

SEC. 721. PILOT PROGRAM FOR HEALTH CARE DELIVERY.(a) Pilot Program.—The Secretary of Defense may conduct a pilot program at two or more military installations for purposes of testing initiatives that build cooperative health care arrangements and agreements between military installations and local and regional non-military health care systems.(b) Requirements of Pilot Program.—In conducting the pilot program, the Secretary of Defense shall—(1) identify and analyze health care delivery options involving the private sector and health care services in military facilities located on the installation;(2) determine the cost avoidance or savings resulting from innovative partnerships between the Department of Defense and the private sector;(3) study the potential, viability, cost efficiency, and health care effectiveness of Department of Defense health care providers delivering health care in civilian community hospitals; and(4) determine the opportunities for and barriers to coordinating and leveraging the use of existing health care resources, including Federal, State, local, and contractor assets.(c) Consultation Requirements.—The Secretary of Defense shall develop the pilot program in consultation with the Secretaries of the military departments, representatives from the military installation selected for the pilot program, Federal, State, and local entities, and the TRICARE managed care support contractor with responsibility for that installation.(d) Selection of Military Installation.—The pilot program may be implemented at two or more military installations selected by the Secretary of Defense. At least one of the selected military installations shall meet the following criteria: (1) The military installation has members of the Armed Forces on active duty and members of reserve components of the Armed Forces that use the installation as a training and operational base, with members routinely deploying in support of the global war on terrorism.(2) The number of members of the Armed Forces on active duty permanently assigned to the military installation is expected to increase over the next five years.(3) One or more cooperative arrangements exist at the military installation with civilian health care entities in the form of specialty care services in the military medical treatment facility on the installation.(4) There is a military treatment facility on the installation that does not have inpatient or trauma center care capabilities.(5) There is a civilian community hospital near the military installation with—118 STAT. 1989(A) limited capability to expand inpatient care beds, intensive care, and specialty services; and(B) limited or no capability to provide trauma care.(e) Duration of Pilot Program.—Implementation of the pilot program developed under this section shall begin not later than May 1, 2005, and shall be conducted during fiscal years 2005, 2006, and 2007.(f) Reports.—With respect to any pilot program conducted under this section, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and of the House of Representatives—(1) an interim report on the program, not later than 60 days after commencement of the program; and(2) a final report describing the results of the program with recommendations for a model health care delivery system for other military installations, not later than July 1, 2007.