I recommend consolidating the USPHS into the US Navy (similiar to the Marine structure where they would fall UNDER the US Navy but remain a separate branch of service). They could be utilized at any DOD branch, all other government branches and some VA hospitals.
I feel that USPHS can be better utilized and with a more structured chain of command, better billet availability to ANY government branch, and expand service numbers without the recruitment and cost that would normally be necessary.
It may also expand DOD servicemembers to serve at other government agencies fully utilizing the staff during shore duty to others that are in need. This could help increase morale but allowing more varied availibility to serve and possibly serve closer to home.