To provide for the designation and operation of the Silas B. Hays Community Hospital at Fort Ord, California as a satellite facility of a uniformed services treatment facility.

Directs the Secretary of Defense to arrange for a uniformed services treatment facility of the Department of Defense to assume operation of the Silas B. Hays Army Community Hospital at Fort Ord, California, in a manner consistent with the managed-care delivery and reimbursement model required under provisions of the National Defense Authorization Act for Fiscal Year 1991. Requires the Secretary to consider such hospital as a satellite facility of the uniformed services treatment facility. Requires negotiations for such arrangement to be completed no later than September 30, 1994.