GSA cancels e-health system contract with HP

Friday - 1/14/2011, 3:27pm EST

The $22 million contract that was supposed to completely revamp the Defense Department's electronic health records system has been terminated by General Services Administration, NextGov reports.

The contract with HP Enterprise Services was first awarded last May. The company was hired to make improvements to the Armed Forces Health Longitudinal Technology Application, known as AHLTA.

This contract was held out as a fundamental restructuring of the system. Officials at the Defense Health Information Management System had gone so far as to say the contract also would be used as a pilot for new health record capabilities at a Federal Health Care Center in Chicago.

HP acknowledged the termination to NextGov, but the company hasn't said yet what the reasons for it are. The Military Health System also hasn't given any specific reasons yet.

The Government Accountability Office reports - the Defense Department has spent $2 billion over the past 13 years developing AHLTA. But GAO says users have continued to struggle with the performance of the parts of the system that have been deployed.

This story is part of Federal News Radio's daily DoD Report. For more defense news, click here.