VA’s Cerner transition budget exceeds $16B

The Veterans Affairs Department tacked $350 million on to its contract estimate for a new Cerner EHR, sending the total cost of its 10-year modernization project upwards of $16.1 billion, the Kansas City Business Journal reports.

Advertisement

The VA awarded Cerner an initial $10 billion contract in May. However, the VA reportedly failed to budget for government employees needed on the project, which caused the costs to increase, according to the Journal.  

During a recent House oversight subcommittee hearing, Congress expressed concern over the mounting costs of the project, along with questioning the whether the EHR will be interoperable interoperability between the Defense Department and community providers. Cerner has said it can ultimately facilitate these exchanges if the VA and DOD are on the same system.

“I do know community interoperability is a very real problem, and for $16 billion, VA had better solve it. It all means nothing if VA and Cerner do not follow through,” said Rep. Jim Banks, R-Ind., chairman of the subcommittee, according to the Journal. “I am not ready to sound the alarm yet, but … I have expressed my concern about what seems to be a loss of focus on innovation.”  

More articles on EHRs:

CMS to launch AI challenge
6 realistic use cases for blockchain in healthcare
Public attitudes toward algorithms shaped by privacy concerns, desire for ‘human element’

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Register to Attend Webinar

The hidden cost of lost clinical time and how leading health systems are responding

Friday, August 7
12:00 PM - 1:00 PM CDT

Presenters: Kassaundra McKnight-Young, Zebra TechnologiesGregory Carras, Zebra TechnologiesJennifer Gene, Levata

Advertisement

Next Up in EHRs / Interoperability

Advertisement

Comments are closed.