New arrangements for the provision of health services to ADF members in Victoria will see ADF medical staff directed to core capability areas and operationally deployable health support units.

The Defence Health Service has major shortages of uniformed medical officers, as well as other health personnel, with 115 doctors out of a target of 165. Defence is currently exploring a number of initiatives to improve recruitment and retention of uniformed health staff.

There was already a high, and increasing, reliance on contract health practitioners in Victoria.

Medical services at Puckapunyal have been outsourced since 1994.

Comprehensive market testing of a full range of Victorian ADF health services identified that potential and significant cost savings of about 14 per cent annually could be achieved.

In October 2002, the Government announced Mayne Health was the preferred tenderer to provide health services to ADF personnel in Victoria over the next five years.

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