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How Cerner Won The Biggest EHR deal ever…TWICE

Electronic Health Records (EHR) is a big deal in the health industry and Cerner is one of the biggest names in the business and luckiest, given they’ve landed another huge deal! Back in July 2015, the company (along with bid partners Accenture and Leidos) scored the highly sought after DoD Healthcare Management System Modernization contract just two years after it was first announced back in 2013 by the U.S. Department of Defense.

Thanks to that huge contract, Cerner has became a big name as a vendor in the healthcare industry, beating out other big names like IBM, Hewlett-Packard and others. The deal is huge and they are still running a pilot program called MHS Genesis at Fairchild Air Force Base in Spokane, Washington. The next rollout is supposed to be this month at the Oak Harbor Naval Hospital in Ault Field, Washington. And if all goes to plan it will impact more than 204 healthcare professionals at more than 1,230 locations.  But the size of the project could really extend beyond DoD and affect the entire healthcare industry.

Now, they’ve scored a new contract with the U.S. Department of Veterans Affairs, with an unreleased contract price. According to VA Secretary David Shulkin, MD, it’ll take at least six months for the agency to develop both the “implementation” and “cost” of the desired system. Many are wondering if it’ll be more than the $4.3 billion DoD contract price, with Shulkin admitting that they have yet to agree upon a pricing.
Cerner’s reputation for supporting interoperability is what made them more attractive than their competitors and helped land them the DoD deal and most likely this current one with the VA. Cerner’s other selling points included customizability and cybersecurity.

The DOD project came about after the then-Secretary of Defense Chuck Hagel told Frank Kendall, Under Secretary of Defense for Acquisition, Technology and Logistics, to start searching for a new EHR product that was an off-the-shelf commercial option to take the place of their self-developed Armed Forces Health Longitudinal Technology Application system.

So if all goes to plan with this second rollout, they’ll be testing it in more areas within the coming years.

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