Both parties signed (1) a sharing agreement in December 1993 to treat CHAMPUS-eligible beneficiaries in the Asheville VAMC and (2) a memorandum of understanding in February 1994 providing an overall framework for future CHAMPUS/VA health care resource-sharing agreements. To date, however, neither DOD nor VA has conducted a systemwide search to identify noncatchment areas with VA hospitals where sharing agreements can be implemented. CHAMPUS Funds Have Not Been Used for Catchment Area Sharing Agreements Between Military Hospitals and VA Hospitals

In addition to the delay in implementing CHAMPUS/VA sharing agreements in noncatchment areas, such as Asheville, North Carolina, military hospital commanders in DOD catchment areas have not proposed using CHAMPUS funds for sharing agreements between their hospitals and VA hospitals. Recommendations

We recommend that the Secretary of Defense direct the Assistant Secretary of Defense (Health Affairs) and the military services to fully inform and explain to military hospital commanders the authority to propose using CHAMPUS funds for sharing agreements with VA and their roles and authorities under this program, to provide specific instructions on developing and implementing such agreements, and to identify sharing opportunities in which CHAMPUS funds can be used to buy available VA services. DOD does not agree, however, that disagreements between DOD and VA have delayed the implementation of sharing agreements.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the extent to which Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) funds are being used for health care resource-sharing agreements between the Departments of Veterans Affairs (VA) and Defense (DOD).

What GAO Found

GAO found that: (1) in February 1994, after nearly 3 years of negotiation, VA and DOD agreed on a framework for VA to treat CHAMPUS-eligible beneficiaries and receive reimbursement from CHAMPUS funds; (2) implementation of CHAMPUS/VA sharing agreements has been delayed because of disagreements between DOD and VA over VA hospital requirements; (3) neither DOD nor VA has conducted a systemwide search to identify additional opportunities for sharing agreements; (4) potential sharing opportunities have been missed because DOD hospital commanders have not used CHAMPUS funds for sharing agreements between their hospitals and VA hospitals and are unclear about their authority to do so; and (5) DOD needs to clarify the authority of DOD hospital commanders to propose sharing agreements using CHAMPUS funds, and it needs to provide instructions on developing and implementing such agreements.