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Defense Health Agency’s EHR Cost Skyrockets to $1.58 Billion

by Jasmine Pennic 04/02/2014 1 Comment

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The cost of the Defense Health Agency’s EHR system designed specifically for use in combat soared to $1.58 billion as of December 2013 after initially costing $67.7 million in November 2002, Nextgov reports. According to the 100 page Government Accountability Office (GAO) report, program officials attributed the cost increase to:

  •  addition of capabilities originally intended to be included in a future increment,
  • new requirements necessary to meet the needs of the warfighter, and
  • the inclusion of operations and maintenance costs that were not included in the first APB because it was initially thought that such costs would be paid by the military services.

Defense Health Agency EHR Overview 

Defense Health Agency’s EHR Cost Skyrockets to $1.58 Billion

The Theater Medical Information Program – Joint (TMIP-J), Increment 2 is a set of applications that support warfighters and health care providers in military theater operations with patient, medical logistics, and medical command and control data. The program also integrates with medical systems at sites that support military bases. Increment 2 is intended to upgrade legacy systems and add significant new functionality to the first increment, including support for wounded warriors.

TMIP-J Increment 2 is intended to be fielded in three releases. Program officials estimated that 80 percent of planned capabilities were met with the first installed release, which began fielding in 2008. In December 2013, the program was granted full deployment decision based on test results for the second release, and the third release was in the requirements development phase.

Other program details include:

  • Prime contractors: Evolvent, Data Networks Corporation, KRATOS, LEIDOS, Base Tech, Space and Naval Warfare Systems Center Atlantic, Deloitte, MSGI
  • Total number of contractors: 17
  • Fiscal year 2014 funding requested: $71.8 million
  • Current number of total expected users: 30,000 of 21,000 to 62,000
  • Current number of total expected locations: 509 to 1273 of 743 to 1856a
  • Legacy systems to be replaced: 2
  • Annual cost of legacy systems: $430,000
  • Number of expected system interfaces: 114

photo credit: MC4 Army via cc

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