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HRD-76-140 1 (1976-06-15)

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                                           June 15  197
B--133310

The Fon, :able Melvin Price
Cncir; ,at Committee on \rmed S rvices
House of  ecresentatives

Dear Mr. ChairMan:

     This is in response to your April 27, 1976, recuest for
information on the total Federal costs involved in t:Jin~nq
physicians through the Armed Forces Iealth Professions
Scholarship Progr. As discussed wiLh ;our office, -e based
our work on (1) information contained in a January 1974 re-
port, Costs of Education in the ioalth Professions, pre-
pared by the National Acadeiiiy of Sciences t Institute of
edicin~ aind (2) data obtained from the Department of Health,
Education, and Welfare (HEW) and the Veterans Administration
(VA) reqarding Federal grants provided to medicz2. scnools.
HEW and VA provide most of the FeCeral subsidies to civilian
medical schools.

OUR COST-EFFECTIVENESS REPORT

     On May 5, 1976, we issued a report entitled Cost-
Effectiveness Analysis of Two Military Physician Procurement
Programs: The Scholarshie Pccgrar and The University Pro-
gram (MWD-76-122). We used a cost-effectiveness analysis
to -how the incremental costs expected to he incurred by the
Department of Defense in fi-scal year 1984--the firt !ear or
siultaneous full operation of both military physician pro-
curement programs. Our analysis showed that the costs (in-
cluding anticipated p; , and r'etirement costs) per staff-year
of expected physician services from an estimated 968 crada-
ates of the Scholarship Program would be $21,444, compared to
$26,236 per staff-year of service expected from the antici-
pated 173 graduates of the University program who will be
supplying services to the Department.

     In our analys7is, we included as incr'emental Ccosts asso--
ciated with the Scholarship Program estimates of (I) the
stipends to be paid by the Department to Scholarship Program
participants, (2) the Department's-payment of Scholarship
Program-related medical tuition and fees to civilian medical
scnocvis, acd 1j c.e ,eEatrtncts costs to coniruscer roe


                                                 HRD-76-140





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