File:Defense Health Program Budget For Fiscal Year 2008 (IA 07291C3STATEMENTSACDVADMArthurFY08DHPBudgetFinal1).pdf

Statement of Vice Admiral Donald C. Arthur, Surgeon General of the Navy Before the Subcommittee on Defense of the Senate Appropriations Committee.

"In recent years, Navy Medicine faced many fiscal challenges and anticipates that some will continue throughout fiscal year 2008. The President’s budget for fiscal year 2008 funds healthcare operations; authorizes 1,011 military to civilian conversions; includes funding for the GWOT requirement; and assumes savings and efficiencies in several areas.

Fiscal year 2008 provides funding challenges in that the efficiency wedge increases and certain assumptions regarding savings opportunities may not be borne out in execution. These reductions represent leadership and management challenges, which we must meet. We are vigorously integrating our fiscal challenges, and our military to civilian conversion program, into an ongoing business process review that is designed to make Navy Medicine an efficient, effective care provider.

As you know, the Department of Defense faces tremendous difficulty with balancing the growing costs and long-term sustainability of the Military Health System. We will need to consider all options available to ensure a superior benefit remains available for the long term and we look forward to the recommendations on fiscal and other issues that will come from the Department of Defense Task Force on the Future of Military Health Care that has recently been established with distinguished membership from within the Department, other federal agencies, and the civilian sector."