Defense, VA ask for $2.8 billion to fund health technology in 2011

Defense Department

The Defense and Veterans Affairs departments have asked for $2.8 billion for health information technology for fiscal 2011, nearly 4 percent of the federal government's entire IT budget.

The spending reflects the scale of the health care systems the two departments operate and the importance that Defense and VA place on relying on health IT to manage the care for the 15.5 million soldiers and veterans it serves.

Defense operates one of the largest health care systems in the nation, with 59 hospitals, 364 medical clinics and 282 dental clinics, and maintains electronic health records for 9.5 million active-duty and retired personnel and their families. VA treats about 6 million patients a year in its 153 hospitals, 135 nursing homes and more than 350 clinics and veterans centers.

Defense has requested a fiscal 2011 health IT budget of $1.5 billion, up from $1.4 billion in fiscal 2010. VA asked for $1.3 billion in fiscal 2011, down slightly from its fiscal 2010 health IT budget of $1.4 billion.

Besides funding the maintenance and operations of existing health IT networks, VA has asked for substantial investments in next-generation systems. The department wants to spend $346 million in fiscal 2011 to develop its new HealtheVet system to replace its decades old Veterans Health Information Systems and Technology Architecture (VISTA). That represents an increase $5 million from fiscal 2010.

The proposed HealtheVet budget includes $10 million to develop a new patient scheduling system. VA killed an eight-year, $167 million project to design a patient scheduling system in 2009. The latest request matches the $10 million the department planned to spend on the system in fiscal 2010.

Defense kicked off development of its next electronic health record, which it calls EHR Way Ahead. The department plans to spend $147 million on electronic health record projects in fiscal 2011, up nearly 23 percent from the $120 million in fiscal 2010. Funding includes creating new systems architecture that will serve Defense and VA.

Veterans Affairs said its HealtheVet Core System also will serve as the building block for the Virtual Lifetime Electronic Record that Defense is developing. VA requested $131.5 million for the core system, down $4.2 million from fiscal 2010 levels. Veterans Affairs also requested $52 million for VLER in fiscal 2011, up $9.8 million from fiscal 2010.