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Perspective: The DoD Cerner-Leidos Decision — A Turning Point for EHR?

Perspective: The DoD Cerner-Leidos Decision — A Turning Point for EHR?

This IDC Health Insights Perspective discusses the U.S. Department of Defense (DoD) decision, announced on July 29, 2015, to award the multibillion-dollar contract to modernize and replace the existing worldwide electronic health record (EHR) system to the Cerner consortium. Software firm Cerner Corp. and its partners in the bid, Leidos and Accenture, competed for the contract against two rival finalist consortiums: one representing Epic Systems, along with IBM, and another representing Allscripts Inc., in collaboration with CSC and HP. In advance of the award, Epic and IBM were widely believed to be the likely winners and both the award to Cerner's consortium and the overall size of the contract came as a surprise to many in the industry watching the contracting process. IDC Health Insights expects that the impact of this award will be significant because it will end a period of open-ended and premium pricing for EHR that to date has been largely driven by government incentives but which in the future will be driven by calculations of business value and return on investment (ROI). The choice of Cerner also represents a move toward open systems and interoperability. The DoD's huge, complex, and highly publicized award will create a new benchmark for ROI in the market for EHRs in large healthcare systems (private and governmental), which will exert far-reaching implications on buying decisions by the largest provider organizations, particularly in the U.S. private healthcare market.

Please Note: Extended description available upon request.


In This Perspective
The Winning Bid
Price Considerations
Implications for Cerner
Implications for the EHR Market's Focus on Open Architecture
Implications for the EHR Market's Focus on ROI
Implications for Market Demand for EHR Specialists
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