Closing Walter Reed

I've been listening to reports on the proposed closing of Walter Reed Army Hospital all day. This part of the proposed plan keeps bugging me,
"If the plan is approved, the hospital would move most staff and services to the National Naval Medical Center in nearby Bethesda, Md., to create an expanded facility and streamline medical services.

One-time costs, including construction and renovations, would total $989 million. The Pentagon would save $301 million over 20 years by consolidating operations at the naval hospital, the commissioners said."
[emphasis added]

Someone please explain the math of this to me? Really. Unless they mean that they will be saving $301 million a year how is this cost effective?


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