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Cerner lands $4B Pentagon deal

It named Leodis, which is the prime contractor for the project with Cerner, as having received the winning bid. The system will replace older record systems that are now in use.

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The contract is valued at $4.3 billion over five years, and could set a new national standard for electronic health record systems.

Verona-based Epic Systems is being passed over for a Pentagon contract worth up to $9 billion over 18 years, according to Reuters.

The consortium will help implement an inpatient and outpatient EHR system under the Defense Healthcare Management System Modernization program – widely known in the industry as “dim sum” – for more than 10 million patients.

Cerner Corp. on Wednesday landed what’s thought to be one of the biggest health information technology contracts ever awarded. Earlier this year, the Defense Department narrowed the list down to three.

Prior to the announcement of the victor, some were already skeptical that the department would not be able to seamlessly exchange medical records of active and retired military personnel and their families.

An article on the Department of Defense’s website said Cerner and its partners will begin fielding the system at eight Pacific Northwest locations late next year.

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Dr. Jonathan Woodson, assistant defense secretary for health affairs, told the House Appropriations veterans affairs subcommittee in February 2014 the Pentagon wants to achieve full functionality of the system by 2023.

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