At least one stand-alone military hospital is expected to appear on a list of proposed military base closures to be released March 1 by Defense Secretary William Perry.
It would be the first deactivation of a stand-alone military hospital.
Sources said Fitzsimmons Army Medical Center in Denver may be on the list, which could slow the military's move toward managed care. Another candidate is Charleston Naval Hospital in South Carolina.
Both hospitals are on military bases that have gone through major downsizings.
Fitzsimmons is the lead agent in the transition to managed care for military beneficiaries under the Civilian Health and Medical Program of the Uniformed Services, or CHAMPUS, in 11 states.
The military's conversion to managed care has "problems already, and to add this to the mix isn't going to help," said Charles Partridge, legislative counsel for the National Association for Uniformed Services.
He said closing Fitzsimmons would be "a meat-ax approach" rather than careful management of resources.