A Case Study of Womack Army Medical Center's Initiative to Compete With the Civilian Sector for Obstetric Patient Market Share

Abstract : The National Defense Authorization Act for fiscal year 2002 eliminated the requirement for a TRICARE Standard patient to obtain a nonavailability statement to receive maternity care outside the military treatment facility (MTF). In effect, then, this law gives maternity patients the right to choose to receive their obstetrical care anywhere they choose, whether it be from a military or a civilian healthcare provider. The TRICARE Management Activity will pay the claims if the patient chooses a civilian provider, and the workload will be lost to the MTF. A private consulting firm studied the potential impact, and found that up to 50% of future OB patients might abandon Womack Army Medical Center (WAMC) (KPMG Consulting Site Visit Report, 2002). In order to counteract the enormous impact this would have on the MTF, WAMC initiated a project to upgrade and enhance its OB services so that it could directly compete with civilian providers to retain these patients. Currently the OB initiative is underway with a price tag of over $4 million. Major product lines or services that WAMC is improving include the addition of ultrasound machines, and ensuring continuity of care with a single provider throughout the patient s pregnancy.