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Title 10, Armed ForcesRelease 119-110

§1101 Resource Allocation Methods: Capitation or Diagnosis-related Groups

Title 10 › Subtitle A — General Military Law › PART II — PERSONNEL › CHAPTER 55 — MEDICAL AND DENTAL CARE › § 1101

Last updated Sep 22, 2026|Official source

Summary

Requires the Secretary of Defense, after talking with the other military department heads, to write rules that use capitation or diagnosis-related groups (DRGs) as the main way to give money and resources to military medical facilities. Those rules must not be used when the facility needs resources for mobilization missions. The rules may set up a DRG system like the one in section 1886(d)(4) of the Social Security Act (42 U.S.C. 1395ww(d)(4)) and can include grouping inpatient and outpatient care, methods to sort specific treatments, weighting factors that show relative resource use, and a way to calculate or estimate yearly per-person costs for active-duty members and covered beneficiaries.

Full Legal Text

Title 10, §1101

Armed Forces, Source: USLM XML via OLRC

(a)Establishment of Capitation or DRG Method.—
The Secretary of Defense, after consultation with the other administering Secretaries, shall establish by regulation the use of capitation or diagnosis-related groups as the primary criteria for allocation of resources to facilities of the uniformed services.
(b)Exception for Mobilization Missions.—
Capitation or diagnosis-related groups shall not be used to allocate resources to the facilities of the uniformed services to the extent that such resources are required by such facilities for mobilization missions.
(c)Content of Regulations.—
Such regulations may establish a system of diagnosis-related groups similar to the system established under section 1886(d)(4) of the Social Security Act (42 U.S.C. 1395ww(d)(4)). Such regulations may include the following:
(1)A classification of inpatient treatments by diagnosis-related groups and a similar classification of outpatient treatment.
(2)A methodology for classifying specific treatments within such groups.
(3)An appropriate weighting factor for each such diagnosis-related group which reflects the relative resources used by a facility of a uniformed service with respect to treatments classified within that group compared to treatments classified within other groups.
(4)An appropriate method for calculating or estimating the annual per capita costs of providing comprehensive health care services to members of the uniformed services on active duty and covered beneficiaries.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1993—Pub. L. 103–160, § 714(b)(1), substituted “Resource allocation methods: capitation or diagnosis-related groups” for “Diagnosis-related groups” as section catchline. Subsec. (a). Pub. L. 103–160, § 714(a)(1), substituted “Capitation or DRG Method” for “DRGs” in heading and inserted “capitation or” before “diagnosis-related groups” in text. Subsec. (b). Pub. L. 103–160, § 714(a)(2), substituted “Capitation or diagnosis-related groups” for “Diagnosis-related groups”. Subsec. (c). Pub. L. 103–160, § 714(a)(3), substituted “may” for “shall” in two places in introductory provisions and added par. (4). 1988—Subsec. (c). Pub. L. 100–456 struck out “(1)” before “Such

Regulations

” in introductory provisions.

Statutory Notes and Related Subsidiaries

Regulations

Pub. L. 101–189, div. A, title VII, § 724, Nov. 29, 1989, 103 Stat. 1478, as amended by Pub. L. 102–190, div. A, title VII, § 719, Dec. 5, 1991, 105 Stat. 1404, provided that: “The

Regulations

required by section 1101(a) of title 10, United States Code, to establish the use of diagnosis-related groups as the primary criteria for the allocation of resources to health care facilities of the uniformed services shall be prescribed to take effect not later than October 1, 1993, in the case of outpatient treatments.” Pub. L. 99–661, div. A, title VII, § 701(d)(4), Nov. 14, 1986, 100 Stat. 3898, as amended by Pub. L. 100–180, div. A, title VII, § 724, Dec. 4, 1987, 101 Stat. 1116, provided that: “The Secretary of Defense shall prescribe

Regulations

as required by section 1101(a) of such title (as added by subsection (a)(1)) to take effect— “(A) in the case of inpatient treatments, not later than
October 1, 1988; and “(B) in the case of outpatient treatments, not later than
October 1, 1989.”

Reference

Citations & Metadata

Citation

10 U.S.C. § 1101

Title 10, Armed Forces

Last Updated

Sep 22, 2026

Release point: 119-110