VA underestimated Cerner EHR modernization costs by billions, OIG report finds

Becker's Healthcare May 27, 2021
Hannah Mitchell

The Department of Veterans Affairs’ $16 billion plan to modernize its EHR with Cerner was underestimated by between $1 billion and $2.6 billion, as the budget didn’t account for the physical infrastructure costs of the project, according to a May 26 report by the Office of Inspector General.

The OIG initiated the audit to determine if the VA developed and reported reliable cost estimates for the physical upgrades needed to support the EHR upgrade. The team also examined if the Office of Electronic Health Record Modernization reported estimates to Congress that were in accordance with statutory mandates, the report said.

Five report findings:

1. Reliable cost estimates are vital in ensuring Congress has the information needed to make informed budgetary...

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