DoD picks Leidos, Cerner for new EHR

By Dan Bowman

After months of deliberation--and speculation--the U.S. Department of Defense in July selected a team led by Leidos, Cerner and Accenture to build a new electronic health record to replace its Armed Forces Health Longitudinal Technology Application (AHLTA) system.

The Defense Healthcare Management System Modernization (DHMSM) contract is worth $4.3 billion for its first phase of two years, although last week, the Space and Naval Warfare Systems Command issued a sole-source modification contract to the Leidos-Cerner team, as well. It anticipates that average costs for the modification "will not exceed $5 million" annually, and said that prior to the DoD's awarding of the DHMSM bid, "the government could not have anticipated this solution-specific need, which is why this scope was not included in the original RFP."

There are two additional three-year option periods, as well as a potential two-year award term. The system will be installed at 55 hospitals nationwide, as well as at more than 600 clinics.

The Leidos-Cerner team beat out two other finalists: Epic, with IBM and Impact Advisors; and Allscripts, which teamed with Computer Sciences Corp. and Hewlett Packard (HP).

Another team eliminated from contention for the contract earlier this year was PwC, which was bidding with Google, MedicaSoft, General Dynamics Technology, DSS, Inc. and Medsphere. That team was using code from the Department of Veterans Affairs' VistA EHR.

DoD picks Leidos, Cerner for new EHR