The Department of Defense has modified its electronic health record system contract with government contractor Leidos to meet new EHR hosting requirements that DoD says can only be met by data centers owned and operated by Cerner Corp.

In July, the Leidos-Cerner team won the coveted 10-year, $4.3 billion contract award to modernize DoD’s EHR worldwide. However, under a recently announced sole-source award, which is not to exceed $5 million per year, the Defense Healthcare Management System Modernization (DHMSM) EHR will now be hosted in Cerner’s facilities despite the fact that the original request for proposals required hosting in military computing centers.

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