Summary

GAO reviewed the Department of Defense (DOD), Office of the Secretary's new rule on the TRICARE hospital outpatient prospective payment system. GAO found that (1) the final rule implements a prospective payment system for hospital outpatient care services similar to that furnished to Medicare beneficiaries, recognizes applicable statutory requirements and changes arising from Medicare's continuing experience with this system, and implements an existing statutory requirement for adoption of Medicare payment methods for institutional care which will ultimately provide incentives for hospitals to furnish outpatient services in an efficient and effective manner; and (2) with the exception of the delay in effective date, DOD complied with the applicable requirements in promulgating the rule.