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Cerner $16B EHR system for VA to receive review

A strategic review will be conducted by the Department of Veterans Affairs on its new multi-billion-dollar electronic health records (EHR) system from Kansas City-based health tech company, Cerner. The review arrives after some concern regarding delays, though the VA said it remains committed to the Cerner’s EHR system.

The Department of Veterans Affairs on Friday announced a strategic review of its electronic health records modernization, a $16 billion effort with North Kansas City-based Cerner Corp.

VA Secretary Denis McDonough announced the review after his assessment of the program during his first month in office. The review could take as long as 12 weeks.

According to a Friday release, this will consist of “a full assessment of the ongoing electronic health record modernization program to ensure continued success for all future EHR deployments.” The review will focus on “identifying areas for additional productivity and workflow optimization.”

The effort went live for the first time in October at Mann-Grandstaff VA Medical Center in Washington state. A “rigorous review” of that deployment made it “apparent” that a review is needed, McDonough said in the release, though he stressed that the department “remains committed to the Cerner Millennium solution.”

The VA’s next go-live site for now is scheduled for its facility in Columbus, Ohio, but the review may delay that installation as well as subsequent deployments, the release said.

In a written statement, Cerner (Nasdaq: CERN) expressed support for the review.

“Our No. 1 priority remains the veterans we serve and delivering solutions that drive the transformation of care across the VA,” said Brian Sandager, general manager of Cerner Government Services. “We are proud of the significant milestones we have achieved, including one of the largest health data migrations in history and the deployment of a new joint Health Information Exchange between (the U.S. Department of Defense), VA and their community partners.”

In mid-February, the Government Accountability Office suggested that the VA conduct further stress tests on the EHR system to identify potential problems.

The VA signed a 10-year, $10 billion contract with Cerner in 2018 to modernize its EHR system and allow the sharing of records with the DOD, for which Cerner also is providing a new EHR system. Cost estimates for the VA work have increased to $16 billion.