By Meg Lehman
| March 20, 2025 03:38 PM ET
As VA Struggles with Costs, DOD Completes Its Rollout
Despite significant advancements in electronic health record (EHR) systems, especially within the federal government, notable challenges arise in execution. The Veterans Administration (VA) and the Department of Defense (DOD) are operating on two different fronts concerning the implementation of EHR systems, which both organizations are looking to enhance with the integration of artificial intelligence (AI).
The healthcare AI market is booming and predicted to surge from $20.9 billion in 2024 to an astounding $148.4 billion by 2029, indicating a growing dependence on AI technology to improve healthcare systems.
VA Sees EHR Cost Overruns
The VA’s implementation of its Oracle Cerner EHR system has faced multiple delays, resulting in a pause on new implementations as of 2024. They plan to restart the rollout in 2026. Meanwhile, the VA has compiled an “AI Use Case Inventory” showcasing over 200 initiatives intended to enhance the lives of veterans and staff despite the ongoing financial struggles.
The program’s budget could balloon from its current estimate of $16 billion to $49.8 billion, as indicated by reports from the VA’s Office of Inspector General.
DOD EHR Sees Final Phase Deployment
Conversely, the DOD’s MHS GENESIS system has seen success and reached its final deployment phase at the Captain James A. Lovell Federal Health Care Center, serving military members and families. The seamless transition from military service to veteran status is facilitated by this unified platform, enhancing healthcare delivery.
Challenges and the Role of AI
The implementation of EHR systems must navigate several obstacles such as IT integration, healthcare provider training, and patient privacy concerns. AI offers numerous possibilities to improve EHR functionality, such as automating tasks, identifying health trends, and optimizing resource management — each critical for enhancing overall efficiency in healthcare delivery.
With the ongoing commitment to adopting AI, both the VA and DOD aim to improve the capabilities of EHR systems, marking a pivotal step towards modernizing healthcare delivery for veterans and service members alike.
