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United States Government Accountability Office: 
GAO: 

Report to Congressional Committees: 

February 2011: 

Electronic Health Records: 

DOD and VA Should Remove Barriers and Improve Efforts to Meet Their 
Common System Needs: 

GAO-11-265: 

GAO Highlights: 

Highlights of GAO-11-265, a report to congressional committees. 

Why GAO Did This Study: 

The Department of Defense (DOD) and the Department of Veterans Affairs 
(VA) operate two of the nation’s largest health care systems. To do 
so, both departments rely on electronic health record systems to 
create, maintain, and manage patient health information. DOD and VA 
are currently undertaking initiatives to modernize their respective 
systems, jointly establish the Virtual Lifetime Electronic Record 
(VLER), and develop joint information technology (IT) capabilities for 
the James A. Lovell Federal Health Care Center (FHCC). In light of 
these efforts, GAO was asked to (1) identify any barriers that DOD and 
VA face in modernizing their electronic health record systems to 
jointly address their common health care business needs, and (2) 
identify lessons learned from DOD’s and VA’s efforts to jointly 
develop VLER and to meet the health care information needs for the 
FHCC. To do this, GAO analyzed departmental reviews and other 
documentation and interviewed DOD and VA officials. 

What GAO Found: 

DOD and VA face barriers in three key IT management areas—strategic 
planning, enterprise architecture, and investment management—and, as a 
result, lack mechanisms for identifying and implementing efficient and 
effective IT solutions to jointly address their common health care 
system needs. First, the departments have been unable to articulate 
explicit plans, goals, and timeframes for jointly addressing the 
health IT requirements common to both departments’ electronic health 
record systems. For example, DOD’s and VA’s joint strategic plan does 
not discuss how or when the departments propose to identify and 
develop joint health IT solutions, and department officials have not 
yet determined whether the IT capabilities developed for the FHCC can 
or will be implemented at other DOD and VA medical facilities. Second, 
although DOD and VA have taken steps toward developing and maintaining 
artifacts related to a joint health architecture (i.e., a description 
of business processes and supporting technologies), the architecture 
is not sufficiently mature to guide the departments’ joint health IT 
modernization efforts. For example, the departments have not defined 
how they intend to transition from their current architecture to a 
planned future state. Third, DOD and VA have not established a joint 
process for selecting IT investments based on criteria that consider 
cost, benefit, schedule, and risk elements, which would help to ensure 
that the chosen solution both meets the departments’ common health IT 
needs and provides better value and benefits to the government as a 
whole. These barriers result in part from DOD’s and VA’s decision to 
focus on developing VLER, modernizing their separate electronic health 
record systems, and developing IT capabilities for the FHCC, rather 
than determining the most efficient and effective approach to jointly 
addressing their common requirements. Because DOD and VA continue to 
pursue their existing health information sharing efforts without fully 
establishing the key IT management capabilities described above, they 
may be missing opportunities to successfully deploy joint solutions to 
address their common health care business needs. 

DOD’s and VA’s experiences in developing VLER and IT capabilities for 
the FHCC offer important lessons that the departments can use to 
improve their management of these ongoing efforts. Specifically, the 
departments can improve the likelihood of successfully meeting their 
goal to implement VLER nationwide by the end of 2012 by developing an 
approved plan that is consistent with effective IT project management 
principles. Also, DOD and VA can improve their continuing effort to 
develop and implement new IT system capabilities for the FHCC by 
developing a plan that defines the project’s scope, estimated cost, 
and schedule in accordance with established best practices. Unless DOD 
and VA address these lessons, the departments will jeopardize their 
ability to deliver expected capabilities to support their joint health 
IT needs. 

What GAO Recommends: 

GAO is recommending that DOD and VA take steps to improve their joint 
strategic planning, enterprise architecture, and IT investment 
management to address their common health care business needs. GAO is 
also recommending that the departments strengthen their joint IT 
system planning efforts for VLER and the FHCC. Commenting on a draft 
of this report, DOD, VA, and the DOD/VA Interagency Program Office 
concurred with GAO’s recommendations. 

View [hyperlink, http://www.gao.gov/products/GAO-11-265] or key 
components. For more information, contact Valerie C. Melvin at (202) 
512-6304 or melvinv@gao.gov. 

[End of section] 

Contents: 

Letter: 

Conclusions: 

Recommendations for Executive Action: 

Agency Comments and Our Evaluation: 

Appendix I: Briefing for Staff Members of Congressional Committees 

Appendix II: Comments from the Department of Defense: 

Appendix III: Comments from the Department of Veterans Affairs: 

Appendix IV: Comments from the DOD/VA Interagency Program Office: 

Appendix V: GAO Contact and Staff Acknowledgments: 

Abbreviations: 

AHLTA: Armed Forces Health Longitudinal Technology Application: 

BHIE: Bidirectional Health Information Exchange: 

CHDR: Clinical Data Repository/Health Data Repository: 

DOD: Department of Defense: 

FHCC: Federal Health Care Center: 

FHIE: Federal Health Information Exchange: 

IT: information technology: 

LDSI: Laboratory Data Sharing Interface: 

MHS: Military Health System: 

VA: Department of Veterans Affairs: 

VistA: Veterans Health Information Systems and Technology Architecture: 

VHA: Veterans Health Administration: 

VLER: Virtual Lifetime Electronic Record: 

[End of section] 

United States Government Accountability Office: 
Washington, DC 20548: 

February 2, 2011: 

The Honorable Thad Cochran: 
The Honorable Daniel Inouye: 
United States Senate: 

The Honorable C.W. Bill Young: 
Chairman: 
The Honorable Norman D. Dicks: 
Ranking Member: 
Subcommittee on Defense: 
Committee on Appropriations: 
House of Representatives: 

The Department of Defense (DOD) and the Department of Veterans Affairs 
(VA) operate two of the nation's largest health care systems, 
providing health care to service members and veterans at estimated 
annual costs of about $49 billion and $48 billion, respectively. To do 
so, both departments rely on electronic health record systems to 
create, maintain, and manage patient health information. DOD uses 
multiple legacy health systems, including its outpatient system--the 
Armed Forces Health Longitudinal Technology Application (AHLTA)--which 
are supplemented with paper-based records. VA uses an integrated 
medical information system, the Veterans Health Information Systems 
and Technology Architecture (VistA), which includes electronic health 
records and consists of over 100 separate computer applications. 

Congress has long expressed an interest in DOD's and VA's efforts to 
improve their health information exchange capabilities, and has urged 
the departments to identify common health information technology (IT) 
requirements and business processes as they continue to modernize 
their health IT systems. As we have previously reported,[Footnote 1] 
the departments have increased electronic health record 
interoperability[Footnote 2] using a patchwork of initiatives 
involving DOD and VA systems. The departments have recognized that, 
despite interoperability gains over the last decade, more work is 
needed to meet clinicians' evolving needs for exchanging health 
information between the systems. 

Currently, DOD and VA are engaged in two high-profile collaborative 
initiatives that are dependent on their ability to fully share 
electronic health information. First, in response to the President's 
April 2009 announcement, the departments began planning the Virtual 
Lifetime Electronic Record (VLER) initiative which is intended to 
streamline the transition of electronic medical, benefits, and 
administrative information between DOD and VA and support the 
transition of military personnel to veteran status, and throughout 
their lives. VLER is further intended to expand the departments' 
health information sharing capabilities by enabling access to private 
sector health data as well. In addition, the James A. Lovell Federal 
Health Care Center (FHCC) in North Chicago, Illinois, is to be the 
first DOD/VA medical facility operated under a single line of 
authority to manage and deliver medical and dental care for veterans, 
new Naval recruits, active duty military personnel, retirees, and 
dependents. This new center, including initial supporting IT system 
capabilities, became operational in late December 2010, with 
additional system capabilities to be implemented through December 2011. 

At the same time, DOD and VA have both identified the need to 
modernize their electronic health record systems. As they have 
undertaken these modernizations, the departments have studied and 
reported on the potential to pursue joint solutions to the many health 
care system needs that DOD and VA have in common. For example, an 
August 2008 study that the departments funded identified alternative 
approaches they could use to achieve a high degree of interoperability 
by working toward a joint DOD and VA inpatient electronic health 
record system. Further, in May 2010, the departments reported to 
Congress that they were committed to assessing all possible common 
capability development for their next generation of electronic health 
record systems. 

Because of the importance of comprehensive health information in 
providing optimal medical care to service members and veterans, you 
requested that we: 

* identify any barriers that DOD and VA face in modernizing their 
electronic health record systems to jointly address their common 
health care business needs, and: 

* identify lessons learned from DOD's and VA's efforts to jointly 
develop VLER and to meet the health care information needs for the 
FHCC. 

On December 1, 2010, we provided your offices with briefing slides 
that outlined the results of our study. The purpose of this report is 
to provide the published briefing slides to you and to officially 
transmit our recommendations to the Secretaries of Defense and 
Veterans Affairs. The slides, which discuss our scope and methodology, 
are included in appendix I. 

We conducted our work in support of this performance audit at DOD's 
Military Health System offices and VA's headquarters in the 
Washington, D.C., metropolitan area and at the departments' medical 
facilities in North Chicago, Illinois, from December 2009 to January 
2011 in accordance with generally accepted government auditing 
standards. Those standards require that we plan and perform the audit 
to obtain sufficient, appropriate evidence to provide a reasonable 
basis for our findings and conclusions based on our audit objectives. 
We believe that the evidence obtained provides a reasonable basis for 
our findings and conclusions based on our audit objectives. 

In summary, our study highlighted the following: 

* Although our prior work has shown that having and using a strategic 
plan, enterprise architecture, and IT investment management process 
are critical to effectively modernizing major IT systems, DOD and VA 
have not sufficiently established these fundamental management 
capabilities to guide their joint health IT efforts. In particular, 
DOD and VA have not articulated explicit plans, goals, and time frames 
for jointly addressing the health IT requirements common to both 
departments' electronic health record systems, and the departments' 
joint strategic plan does not discuss how or when DOD and VA propose 
to identify and develop joint solutions to address their common health 
IT needs. In addition, although DOD and VA have taken steps toward 
developing and maintaining artifacts related to a joint health 
architecture (i.e., a description of business processes and supporting 
technologies), the architecture is not sufficiently mature to guide 
the departments' joint health IT modernization efforts. For example, 
the departments have not defined how they intend to transition from 
their current architecture to a planned future state. Furthermore, DOD 
and VA have not established a joint process for selecting IT 
investments based on criteria that consider cost, benefit, schedule, 
and risk elements, which limits their ability to pursue joint health 
IT solutions that both meet their needs and provide better value and 
benefits to the government as a whole. These barriers can be 
attributed to, among other things, the departments' decision to 
continue with their existing efforts--VLER, separate electronic health 
record modernizations, and developing IT capabilities for the FHCC--
rather than determining the best approach to jointly addressing their 
common requirements. Without these key IT management capabilities in 
place, the departments will continue to face barriers to identifying 
and implementing efficient and effective IT solutions to jointly 
address their common health care needs. 

* DOD's and VA's experiences in developing VLER and IT capabilities 
for the FHCC offer important lessons that the departments can use to 
improve their management of these ongoing efforts. Specifically, the 
departments can improve the likelihood of successfully meeting their 
goal to implement VLER nationwide by the end of 2012 by developing an 
approved integrated master schedule, master program plan, and 
performance metrics consistent with effective IT project management 
principles. Also, DOD and VA can improve their continuing effort to 
develop and implement new IT system capabilities for the FHCC by 
developing a project plan that defines the scope, estimated cost, and 
budget in accordance with established best practices. Unless the 
departments address these lessons, their ability to effectively 
deliver capabilities to support their joint health IT needs is 
uncertain. 

Conclusions: 

DOD and VA face barriers in three key IT management areas--strategic 
planning, enterprise architecture, and IT investment management--that 
can be problematic for departments that have undertaken major IT 
efforts. First, the departments' joint strategic plan does not discuss 
how the departments intend to address their common requirements and 
they have not articulated a potential approach or timeline for working 
together to meet their common health IT needs. Second, DOD's and VA's 
joint health architecture, which could guide the departments in the 
identification and development of common IT solutions, is not 
sufficiently mature to provide such direction. Third, the departments 
have not established a process or criteria for selecting IT 
investments that best support their many common electronic health 
record requirements. These barriers result in part from the 
departments' decision to focus on developing VLER, modernizing their 
separate electronic health record systems, and developing IT 
capabilities for the FHCC, rather than determining the most efficient 
and effective approach to jointly addressing their common 
requirements. Because the departments continue to pursue their 
existing health information sharing efforts without fully establishing 
the key IT management capabilities described above, DOD and VA may be 
missing other opportunities to deploy joint solutions to address their 
common health care business needs. 

DOD's and VA's efforts to jointly develop VLER and the FHCC's IT 
capabilities offer important lessons that the departments can use to 
improve these endeavors. Specifically, these efforts highlight the 
importance of effective project planning to the successful development 
and implementation of capabilities needed to care for service members 
and veterans as these and the departments' future joint projects move 
forward. 

Recommendations for Executive Action: 

To ensure that DOD and VA efficiently and effectively modernize their 
electronic health record systems to jointly address their common 
health care business needs, we recommend that the Secretaries of 
Defense and Veterans Affairs direct the Joint Executive Council to 
take the following three actions: 

* Revise the departments' joint strategic plan to include information 
discussing their electronic health record system modernization efforts 
and how those efforts will address the departments' common health care 
business needs. 

* Further develop the departments' joint health architecture to 
include their planned future (i.e., "to be") state and a sequencing 
plan for how they intend to transition from their current state to the 
next generation of electronic health record capabilities. 

* Define and implement a process, including criteria that considers 
costs, benefits, schedule, and risks, for identifying and selecting 
joint IT investments to meet the departments' common health care 
business needs. 

We also recommend that the Secretaries of Defense and Veterans Affairs 
strengthen their ongoing efforts to establish VLER and the joint IT 
system capabilities for the FHCC by developing plans that include 
scope definition, cost and schedule estimation, and project plan 
documentation and approval. 

Agency Comments and Our Evaluation: 

We received written comments on a draft of this report from the 
Assistant Secretary of Defense for Health Affairs, the VA Chief of 
Staff, and the Director of the DOD/VA Interagency Program Office. In 
the comments, DOD concurred with our recommendations; VA generally 
agreed with our conclusions and concurred with our recommendations; 
and the DOD/VA Interagency Program Office concurred with our overall 
findings and recommendations. Additionally, DOD and VA described 
actions the departments took subsequent to our December 1, 2010 
briefing. Specifically, they stated that the departments' senior 
leaders were briefed on the DOD-VA Joint Action Plan towards a common 
platform and that the departments established and staffed teams to 
investigate and analyze electronic health record system collaboration. 
Further, the DOD/VA Interagency Program Office provided information 
about ongoing efforts to plan and manage VLER. These efforts include 
the departments' development of a concept of operations that is 
intended to serve as a master program plan and is to be completed in 
February 2011. The Director also stated that the departments have 
begun reporting performance metrics for the VLER pilot currently being 
conducted in Tidewater, Virginia, and that schedules, project plans, 
and performance measures have been developed for the next VLER pilot, 
which is to take place in the Spokane area of Washington state. If the 
departments fully implement our recommendations, they should be better 
positioned to modernize their electronic health record systems to 
jointly address their common health care business needs. 

DOD, VA, and the DOD/VA Interagency Program Office also provided 
technical comments, which we incorporated as appropriate. Comments 
from the Departments of Defense and Veterans Affairs, and the DOD/VA 
Interagency Program Office are reproduced in appendices II, III, and 
IV, respectively. 

We are sending copies of this report to the Secretaries of Defense and 
Veterans Affairs and other appropriate congressional committees. 
Copies of this report will also be available at no charge on GAO's Web 
site at [hyperlink, http://www.gao.gov]. 

Should you or your staffs have any questions about this report, please 
contact me at (202) 512-6304 or melvinv@gao.gov. Contact points for 
our Offices of Congressional Relations and Public Affairs may be found 
on the last page of this report. GAO staff who made major 
contributions to this report are listed in appendix V. 

Signed by: 

Valerie C. Melvin: 
Director, Information Management and Human Capital Issues: 

[End of section] 

Appendix I: Briefing for Staff Members of Congressional Committees: 

Electronic Health Records: DOD and VA Should Remove Barriers and 
Improve Efforts to Meet Their Common System Needs: 

Briefing for Staff Members of Congressional Committees: 

December 1, 2010: 

Table of Contents: 

Introduction: 
Objectives: 
Scope and Methodology: 
Results in Brief: 
Background: 
Results: 
* Barriers to Addressing Common Requirements: 
* Lessons Learned: 
Conclusions: 
Recommendations for Executive Action: 
Agency Comments and Our Evaluation: 
Appendix I: Congressional Requesters: 

[End of section] 

Introduction: 

The Department of Defense (DOD) and the Department of Veterans Affairs 
(VA) operate two of the nation's largest health care systems, 
providing health care to service members and veterans at estimated 
annual costs of about $49 billion and $48 billion, respectively. To do 
so, both departments rely on electronic health record systems to 
create, maintain, and manage patient health information. 

* DOD's health care operation supports service members at over 700 
hospitals, clinics, and other facilities around the world. To provide 
access to patient information, DOD uses multiple legacy health 
systems, including its outpatient system--the Armed Forces Health 
Longitudinal Technology Application (AHLTA); DOD's medical information 
systems are supplemented with paper-based records. 

* VA's Veterans Health Administration (VHA) has over 1,500 facilities 
(e.g., hospitals and clinics) throughout the United States. In 
contrast to DOD, VA has one integrated medical information system, the 
Veterans Health Information Systems and Technology Architecture 
(VistA). 

Because the departments collect, store, and process health information 
in different systems, providing seamless, comprehensive access to 
information that is necessary to optimally treat patients is a 
challenge for DOD and VA, particularly as patients transition from 
service member to veteran status. The departments have thus far 
attempted to meet this challenge through increasing electronic health 
record interoperability--generally the ability of systems to exchange 
data--using a patchwork of initiatives between DOD and VA systems. The 
departments recognize that, despite interoperability gains over the 
last decade, more work is needed to meet clinicians' evolving needs 
for exchanging health information between the departments' systems. 

Building on DOD's and VA's efforts to increase electronic heath record 
interoperability, in April 2009 the President announced that the 
departments would work together to define and build the Virtual 
Lifetime Electronic Record (VLER) to streamline the transition of 
electronic medical, benefits, and administrative information between 
the two departments. VLER is intended to enable access to all 
electronic records for service members as they transition from 
military to veteran status, and throughout their lives. Further, VLER 
is to expand the departments' health information sharing capabilities 
by enabling access to private sector health data as well. 

In addition, DOD and VA have both identified the need to modernize 
their electronic health record systems. As they have undertaken these 
modernizations, the departments have studied and reported on the 
potential to pursue joint solutions to the many health care system 
needs that DOD and VA have in common. For example, an August 2008 
study that the departments funded identified alternative approaches 
they could use to achieve a high degree of interoperability[Footnote 
3] by working toward a joint DOD and VA inpatient electronic heath 
record system. Further, in May 2010, the departments reported to 
Congress that they were committed to assessing all possible common 
capability development for their next generation of electronic health 
record systems.[Footnote 4] 

Apart from their VLER and electronic health record modernization 
efforts, consolidation of the Naval Health Clinic, Great Lakes, and 
the North Chicago VA Medical Center to form the James A. Lovell 
Federal Health Care Center (FHCC) has prompted the departments to work 
toward implementing electronic health record system components to 
support the provision of health care to service members and veterans 
in a joint setting. This new center is expected to be operational in 
late December 2010, with the supporting system capabilities being 
implemented between December 2010 and December 2011. 

[End of section] 

Objectives: 

Because of the importance of comprehensive health information in 
providing optimal medical care to service members and veterans, the 
Chairmen and Ranking Members of the cognizant Senate and House of 
Representatives Appropriations Subcommittees requested that we: 

* identify any barriers that DOD and VA face in modernizing their 
electronic health record systems to jointly address their common 
health care business needs, and: 

* identify lessons learned from DOD's and VA's efforts to jointly 
develop VLER and to meet the health care information needs for the 
FHCC. 

Appendix I lists the congressional requesters. 

[End of section] 

Scope and Methodology: 

To identify any barriers that DOD and VA face in modernizing their 
electronic health record systems, we: 

* evaluated reports in which DOD, VA, and a consultant identified the 
commonality of the departments' health care missions and supporting 
system needs; 

* reviewed DOD and VA's joint strategic plan and analyzed the extent 
to which the plan and supporting documents discuss common health care 
needs and information technology (IT) system solutions to meeting 
those needs; 

* reviewed the departments' joint health enterprise architecture and 
assessed the architecture's content based on accepted definitions of 
completeness, as described in our architecture management guide; 
[Footnote 5] 

* evaluated DOD's and VA's IT investment policies, processes, and 
organization charters to determine whether the departments have 
established and used criteria for selecting joint IT investments; and: 

* discussed the departments' joint health care mission and system 
needs, strategic plan, enterprise architecture, and IT investment 
management with officials in DOD's Military Health System, VHA, and 
the DOD/VA Interagency Program Office. 

To identify lessons learned from DOD's and VA's efforts to jointly 
develop VLER and to meet the IT system needs for the FHCC, we: 

* assessed available project plans and associated documentation such 
as a schedule and performance metrics for VLER against effective 
project planning practices; 

* visited the Naval Health Clinic, Great Lakes, and the North Chicago 
VA Medical Center and discussed their missions, operations, systems, 
IT needs, and plans for development of the FHCC information technology 
system with managers and clinicians; 

* compared available project management documentation for the FHCC 
initiative, including funding proposals and an integrated master 
schedule, with industry standards, effective practices, and 
disciplined processes for effective project management; and: 

* discussed VLER and the FHCC initiative with DOD and VA officials. 

We conducted this performance audit at DOD's Military Health System 
offices and VA's headquarters in the Washington, D.C., metropolitan 
area and at the departments' medical facilities in North Chicago, 
Illinois, from December 2009 to November 2010 in accordance with 
generally accepted government auditing standards. Those standards 
require that we plan and perform the audit to obtain sufficient, 
appropriate evidence to provide a reasonable basis for our findings 
and conclusions based on our audit objectives. We believe that the 
evidence obtained provides a reasonable basis for our findings and 
conclusions based on our audit objectives. 

[End of section] 

Results in Brief: 

Although our prior work has shown that having and using a strategic 
plan, enterprise architecture, and IT investment management process 
are critical to effectively modernizing major IT systems, DOD and VA 
have not sufficiently established these fundamental management 
capabilities. In particular, the departments lack a specific plan for 
when and how they intend to address their common health IT 
requirements, do not have a sufficiently mature joint health 
enterprise architecture to guide their mutual IT initiatives, and do 
not have a joint IT investment management process in place to identify 
and pursue common health IT solutions. These weaknesses can be 
attributed to, among other things, the departments' decision to 
continue with their existing efforts rather than determining the best 
approach to jointly addressing their common requirements. Without 
having and using these IT management capabilities, the departments are 
impeded in identifying and implementing efficient and effective IT 
solutions to jointly address their common health care needs. 

DOD's and VA's experiences in developing VLER and IT capabilities 
offer important lessons that the departments can use to improve their 
management of these ongoing efforts. Specifically, the departments can 
improve their effort to implement VLER nationwide by the end of 2012 
by developing a plan that is consistent with effective IT project 
management principles. Also, DOD and VA can improve their continuing 
effort to develop and implement new IT system capabilities for the 
FHCC by developing a project plan in accordance with established best 
practices. Unless the departments address these lessons, their ability 
to deliver expected capabilities to support their joint health IT 
needs is uncertain. 

To ensure that DOD and VA address barriers they face in modernizing 
their electronic health record systems to jointly meet their common 
health care business needs, we are making recommendations for the 
revision of their strategic plan, further developing their joint 
enterprise architecture, and defining and executing a joint IT 
investment management process. To address lessons learned that we have 
identified from DOD's and VA's efforts to develop VLER and joint IT 
system capabilities to support the FHCC, we recommend that the 
departments address the project management weaknesses identified in 
this briefing. 

In oral comments on a draft of these briefing slides, DOD and VA 
officials including the Military Health System's Director for External 
Relationship Management and the Veterans Health Administration's 
Deputy Chief Officer for Health Systems generally agreed with our 
recommendations and provided additional information and technical 
comments, which we incorporated in the briefing as appropriate. 

[End of section] 

Background: 

DOD and VA operate two of the nation's largest health care systems, 
providing health care and other services and benefits to active 
service members, veterans, and their families and dependents. 

DOD's Military Health System (MHS) is responsible for providing 
comprehensive medical care during military operations, as well as 
responding to natural disasters and humanitarian crises around the 
globe. With about 135,000 employees and an annual budget of about $49 
billion, MHS provides health care services to 9.6 million active duty 
service members, their families, and other eligible beneficiaries. 

Within VA, the VHA has about 255,000 employees and, in fiscal year 
2010, was appropriated $48 billion to support its medical care and 
research mission. VHA provides primary care, specialized care, and 
related medical and social support services to the nation's veterans 
and their families. VHA provides health care to approximately 6 
million patients at 153 VA medical centers and more than 1,300 
outpatient clinics and centers nationwide. 

VHA's health care centers are organized into Veterans Integrated 
Service Networks which oversee the operations of the various medical 
centers and treatment facilities within their assigned geographic 
areas. 

While in military status and later as veterans, many DOD and VA 
patients tend to be highly mobile and may have health records residing 
at multiple medical facilities within and outside the United States. 
Therefore, electronic health records are particularly crucial for 
optimizing the health care provided to military personnel and 
veterans. Making such records electronic can help ensure that complete 
health care information is available for most military service members 
and veterans at the time and place of care, no matter where it 
originates. 

Furthermore, electronic health records are essential to providing 
quality care to DOD's and VA's 3.5 million shared patients--that is, 
those who receive health care and services from both departments. 
Under the departments' policies for providing health care services, 
veterans and active duty service members may, for example, receive 
outpatient care from VA clinicians and be hospitalized at a military 
treatment facility. 

Both DOD and VA rely on complex electronic health record systems to 
collect, store, and retrieve information on patients in their care. 

* DOD currently relies primarily on AHLTA, which makes use of multiple 
legacy information systems that the department developed from 
commercial software products that were customized for specific uses. 
For example, the Composite Health Care System, which was formerly the 
department's primary health information system, is used to capture 
pharmacy, radiology, and laboratory order management.[Footnote 6] To 
provide capabilities not currently supported by AHLTA, the department 
also uses additional systems, such as Essentris (formerly called the 
Clinical Information System), a commercial product customized to 
support inpatient treatment at military medical facilities. According 
to a department official, DOD currently uses Essentris to support 83 
percent of inpatient beds in its medical facilities. 

The department has been modernizing AHLTA and is currently conducting 
an analysis of alternatives on its next iteration of the system, 
called EHR Way Ahead. For fiscal year 2011, DOD has requested $302 
million to pursue the EHR Way Ahead initiative. 

* VA relies on VistA, which includes electronic health records and, as 
a result of its decentralized development approach, consists of over 
100 separate computer applications. These include health provider 
applications; management and financial applications; crosscutting 
applications such as patient data exchange; registration, enrollment, 
and eligibility applications; health data applications; and 
information and education applications. These applications have been 
further customized at all VA sites where they are deployed and some 
are more than 20 years old. 

In 2001, VA began an initiative called HealtheVet to modernize VistA. 
However, the department experienced problems and delays in delivering 
HealtheVet capabilities and in August 2010 reported that it had 
stopped the initiative. Nevertheless, VA requested $347 million in 
fiscal year 2011 funding to continue with several projects related to 
VistA modernization, including a health data repository and an eHealth 
portal to enable veterans to manage their personal health information. 

Key to making health care information electronically available is the 
ability to share that information among health care providers--that 
is, interoperability. If electronic health records conform to 
interoperability standards, they can be managed and consulted by 
authorized clinicians and staff across more than one health care 
organization--such as MHS and VHA--thus providing patients and their 
caregivers the necessary information required for optimal care. 

For more than a decade, DOD and VA have progressed in their efforts to 
improve interoperability between the departments' systems to provide 
optimal health care to military personnel and veterans. 

The departments' efforts to share information among their existing 
systems have historically focused on four key projects: 

* The Federal Health Information Exchange (FHIE), begun in 2001 and 
enhanced through its completion in 2004, enables DOD to electronically 
transfer service members' electronic health information to VA when the 
members leave active duty. 

* The Bidirectional Health Information Exchange (BHIE) was established 
in 2004 to allow clinicians at both departments viewable access to 
health information on shared patients--that is, those who receive care 
from both departments. For example, veterans may receive outpatient 
care from VA clinicians and be hospitalized at a military treatment 
facility.[Footnote 7] The interface also allows DOD sites to see 
previously inaccessible data, such as inpatient documentation from 
Essentris, at other DOD sites. 

* The Clinical Data Repository/Health Data Repository (CHDR)[Footnote 
8] interface, implemented in September 2006, linked the departments' 
separate repositories of standardized data to enable a two-way 
exchange of computable outpatient pharmacy and medication allergy 
information. 

* The Laboratory Data Sharing Interface (LDSI), a project established 
in 2004, allows DOD and VA facilities to share laboratory resources. 
This interface allows the departments to communicate orders for lab 
tests and their results electronically. 

DOD and VA have established a number of executive-level organizations 
to define the strategic direction for a range of their health care 
collaborative efforts, and to oversee the implementation of these 
efforts. In 2002, the departments established the Joint Executive 
Council to, among other things, develop a strategic planning process 
for the departments' joint efforts, facilitate opportunities to 
enhance sharing, and remove barriers that impede collaboration. 
[Footnote 9] Through this strategic plan, the Council communicates the 
departments' strategic direction for joint initiatives related to 
health care and benefits--as well as establishes the priorities and 
processes for implementing these initiatives--to the Secretaries of 
DOD and VA, and to Congress. 

In addition, the Health Executive Council, an interagency council 
under the Joint Executive Council, is responsible for formulating VA 
and DOD joint policies that relate to health care, facilitating the 
exchange of patient information, and ensuring patient safety.[Footnote 
10] The Health Executive Council is further comprised of 13 issue-
specific workgroups, including one devoted to information 
management/information technology issues. 

Both Congress and the Executive Branch have long expressed an interest 
in DOD's and VA's efforts to improve their health information exchange 
capabilities, and have urged the departments to identify common health 
IT requirements and business processes as they continue to modernize 
their health IT systems. For example: 

* In May 2003, a presidential task force recommended that the 
departments identify common health information requirements so they 
can work together to reengineer their business processes and systems 
to improve interoperability and efficiency.[Footnote 11] 

* In July 2007, the Dole-Shalala Commission recommended that DOD and 
VA work quickly to make patient data more accessible to clinicians and 
health professionals by creating a fully interoperable information 
system to meet their long-term needs.[Footnote 12] 

* The National Defense Authorization Act for Fiscal Year 2008[Footnote 
13] further required that DOD and VA jointly develop and implement 
electronic health record systems or capabilities that allow for full 
interoperability of personal health care information between the 
departments by September 30, 2009. The act required the departments to 
establish a joint interagency program office under the Joint Executive 
Council to serve as a single point of accountability for their joint 
health IT efforts. In January 2009, the departments established such 
an office to act as a single point of accountability for DOD's and 
VA's joint efforts to develop and implement electronic health record 
systems or capabilities to enable full interoperability of the 
departments' health care information. Currently, the office is 
responsible for integrating DOD's and VA's program management plans 
and activities--such as requirements, schedules, costs, and 
performance measures--for their joint health IT initiatives. 

The departments have also initiated activities to determine how they 
might jointly address common health business needs. Specifically: 

* In 2007, the Joint Executive Council commissioned a two-phase study 
on the feasibility of implementing a joint VA/DOD inpatient electronic 
health record system, and potential alternatives for doing so. The 
study team reported in January 2008 that a joint inpatient electronic 
health record was feasible, based on finding that over 97 percent of 
inpatient functional requirements were common to both DOD and VA. The 
second phase of the study recommended that the departments commit to a 
joint service-oriented architecture[Footnote 14] strategy--including 
an ongoing joint investment in a common architecture and a strong 
architecture governance structure--and outlined steps the departments 
would need to take to move toward this framework. In October 2008, the 
departments accepted these recommendations. 

* In May 2010, DOD submitted, in coordination with VA, a report to 
Congress on the status of their efforts to identify joint health IT 
requirements relative to their electronic health record modernization 
efforts. In this report, the departments noted that they shared 10 of 
13 core health IT requirements and identified 7 high-level 
capabilities for potential shared acquisition or development. The 
departments also described at a high level how they could move forward 
in identifying potential joint IT solutions. 

In addition, the departments have been engaged in two high-profile 
collaborative initiatives that are dependent on their ability to fully 
share electronic health information. The FHCC in North Chicago, 
Illinois, is to be the first DOD/VA medical facility operated under a 
single line of authority--led by a Director from VA and a Deputy 
Director from the Navy--to manage and deliver medical and dental care. 
The FHCC is to serve both DOD and VA patient populations, including 
veterans, new Naval recruits, active duty military personnel, 
retirees, and dependents. DOD and VA are estimating that clinical 
operations at the facility will start at the end of December 2010. 

Because the ability to share and exchange patient information is 
essential to the mission of the FHCC, the departments have been 
working together to develop an IT solution with capabilities beyond 
those provided by FHIE, BHIE, and CHDR. Based on input from FHCC 
stakeholders and clinicians, the departments decided to pursue 
development of 3 IT capabilities,[Footnote 15] as summarized in table 
1. 

Table 1: FHCC IT Capabilities under Development: 

Capability: Single patient registration; 
Description: Registers, verifies eligibility, and updates basic 
patient information in AHLTA and VISTA through a single user interface; 
Expected delivery date[A]: December 2010. 

Capability: Single sign on with patient context management; 
Description: Allows users to use a single credential (e.g., user name 
and password, a DOD Common Access Card, or a Homeland Security 
Presidential Directive-12 Personal Identity Verification badge) to 
access a patient's record in DOD and VA medical applications within 
the FHCC; 
Expected delivery date[A]: December 2010. 

Capability: Orders portability; 
Description: Enables clinicians to place and manage various clinical 
orders (as noted below) from either AHLTA or VistA, updates the status 
in both systems, and returns the results to the original ordering 
system; 

Capability: Consults/referrals; 
Expected delivery date[A]: To be determined[B]. 

Capability: Pharmacy; 
Expected delivery date[A]: December 2011[C]. 

Capability: Radiology; 
Expected delivery date[A]: December 2010. 

Capability: Laboratory; 
Expected delivery date[A]: December 2010. 

Capability: Allergy[D]; 
Expected delivery date[A]: July 2011. 

Source: GAO analysis of DOD and VA data. 

[A] Date for full solution implementation, as of November 2010. 

[B] DOD and VA are developing business requirements. As a workaround, 
the departments will maintain existing AHLTA and VistA processes for 
this capability. 

[C] An interim business process solution for orders portability-- 
pharmacy is planned to be delivered in December 2010. 

[D] Orders portability--allergy is a required capability identified by 
the departments in August 2010 when an issue was found with the 
planned orders portability--pharmacy capability. 

[End of table] 

In addition, the departments have expressed interest in developing 
future capabilities for the FHCC, including outpatient appointment 
scheduling and workload management. 

To fund DOD and VA's joint IT projects for the FHCC, the departments 
relied on two grants--totaling $109.5 million--from the DOD/VA Health 
Care Sharing Incentive Fund (known to the departments as the Joint 
Incentive Fund).[Footnote 16] 

* In fiscal year 2008, the departments submitted a proposal to guide 
their IT project management and requirements development efforts for 
the FHCC, and received an award for a total of $9.5 million. 

* In fiscal year 2009, DOD and VA submitted another proposal to 
support activities related to developing the IT solution, and received 
an award for $100 million. 

As of September 2010, the departments estimated that the FHCC joint IT 
project will cost approximately $111 million. 

In response to the President's April 2009 announcement, the 
departments began planning the VLER initiative, which is intended to 
enable DOD, VA, and the private sector to share medical, benefits, and 
administrative information to support the transition of military 
personnel to veteran status. According to the departments, the goal of 
VLER is to ultimately enable clinicians to access all electronic 
records for service members as they transition from military to 
veteran status, and throughout their lives. 

To implement initial VLER capabilities, the departments are embarking 
on an incremental series of 6-month pilots to deploy a set of health 
data exchange capabilities between existing electronic health record 
systems at local sites around the country.[Footnote 17] DOD and VA are 
both utilizing software that allows AHLTA and VistA to exchange 
information through the Department of Health and Human Services' 
Nationwide Health Information Network,[Footnote 18] which allows the 
departments to share information with each other and private sector 
entities capable of information exchange. The first pilot in San 
Diego, California, which started in August 2009, resulted in DOD, VA, 
and Kaiser Permanente being able to share a limited set of test 
patient data. 

Since March 2010, DOD and VA have been jointly conducting another 
pilot in the Tidewater area of southeastern Virginia. This pilot is 
planned to last until January 2011 and is focusing on sharing the same 
data as the San Diego pilot plus additional laboratory data. The 
departments have stated that additional pilots are planned for the 
second quarter of fiscal year 2011. The goal for nationwide deployment 
of the VLER initiative is at or before the end of 2012. 

The departments have not yet developed cost estimates for the entire 
initiative. DOD informed us that it planned to spend $33.6 million in 
fiscal year 2010, and $61.9 million in fiscal year 2011. VA stated 
that it planned to spend $23.5 million in fiscal year 2010, and has 
submitted a budget request of $52 million for fiscal year 2011. 

Between July 2008 and January 2010, we issued a series of reports 
[Footnote 19] on the departments' efforts to develop fully 
interoperable electronic health record systems or capabilities as 
required by the Fiscal Year 2008 National Defense Authorization Act. 
In those reports, we described their progress and highlighted issues 
that the departments needed to address to achieve full electronic 
health record interoperability. Specifically, while the departments 
reported that they had met six interoperability objectives to further 
increase their sharing of electronic health information, we noted that 
the interagency program office was not yet positioned to function as a 
single point of accountability for the implementation of interoperable 
electronic health record systems or capabilities. Our final report, in 
January 2010, reiterated that DOD and VA needed to implement our 
previous recommendations to establish project plans, schedules, and 
performance measures for the interagency program office to effectively 
oversee and manage the departments' delivery of interoperable 
capabilities, including VLER.[Footnote 20] 

We have also reported on the departments' ongoing efforts to modernize 
their individual electronic health record systems and found that they 
have been met with limited success: 

* In June 2008,[Footnote 21] we reported that between 2001 and 2007, 
VA spent almost $600 million on its HealtheVet initiative, which at 
the time was comprised of eight major software development projects. 
Among other things, we found that the department lacked a 
comprehensive project management plan to guide the substantial amount 
of work remaining on HealtheVet, including an integrated schedule and 
an independent cost estimate, and recommended the department take 
action to address these issues to reduce the risk to the HealtheVet 
initiative. 

* In May 2010,[Footnote 22] we reported on VA's efforts to replace 
VistA's scheduling system, which was to be the first application 
completed as part of the HealtheVet initiative. The department had 
decided to terminate the scheduling replacement project in 2009, after 
9 years of planning and spending an estimated $127 million, with the 
intention of starting over. We found that the project was hindered by 
ineffective oversight and weaknesses in key project management areas, 
including acquisition planning, requirements development, and risk 
management. We recommended that VA take six actions to improve its 
project management processes prior to another attempt at replacing its 
scheduling system. VA generally agreed with our recommendations. 

* DOD has faced challenges in its efforts to modernize its current 
medical information system, AHLTA. In October 2010,[Footnote 23] we 
reported that the department's 13-year, $2 billion initiative to 
modernize AHLTA had failed to include key planned system capabilities 
and had not met users' expectations for system usability, 
availability, and speed. We noted that weaknesses in the department's 
acquisition management and planning processes--including lack of 
comprehensive plans to guide both system acquisition and engineering, 
and incomplete requirements--contributed to AHLTA having fewer 
capabilities than originally expected, experiencing persistent 
performance problems, and not fully meeting the needs of users. DOD is 
working to address these issues through planned system performance 
improvements and functionality enhancements to stabilize AHLTA through 
2015 and serve as a bridge to the new electronic health record system 
the department intends to acquire. Given that DOD is now pursuing a 
new electronic health record system, we recommended that the 
department take a number actions to help ensure that it has 
disciplined and effective processes in place to manage the acquisition 
of further electronic health record system capabilities. 

[End of section] 

Results: Barriers to Addressing Common Requirements: 

DOD and VA Face Barriers in Addressing Common Health Care System Needs: 

Our prior work has shown that success in modernizing major IT systems 
depends on having and using a set of IT management capabilities, 
including strategic planning, the use of an enterprise architecture, 
and IT investment management. However, DOD and VA lack specific plans 
for when and how they intend to address their common health IT 
requirements, do not have a joint health enterprise architecture to 
guide their joint IT initiatives, and do not have joint IT investment 
management processes in place to identify and pursue common health IT 
solutions. These weaknesses result in part from the departments' 
decision to focus on (1) VLER, (2) their separate electronic health 
record system modernizations, and (3) development of IT capabilities 
for the FHCC rather than determining the best approach to jointly 
addressing their common requirements. Without key IT management 
capabilities in place, the departments are impeded in identifying and 
implementing efficient and effective IT solutions to jointly address 
their common needs. 

DOD and VA Have Not Yet Formulated Specific Plans for When and How the 
Departments Intend to Address Their Joint Electronic Health Record 
System Needs: 

We have previously reported on the importance of strategic planning to 
guide major IT initiatives and modernization efforts. In addition to 
outlining an organization's mission, key business processes, IT 
challenges, and guiding principles, a strategic plan serves as a 
single voice for communicating goals and objectives to stakeholders. 

DOD's and VA's success in identifying and implementing joint IT 
solutions has been hindered by an inability to articulate explicit 
plans, goals, and time frames for meeting their common health IT 
needs. For example: 

* In April 2010, the Joint Executive Council released its joint 
strategic plan for fiscal years 2010-2012, which is intended to 
describe the departments' strategic direction for joint efforts 
related to health care, including IT.[Footnote 24] The plan states 
that the departments have directed their information-sharing efforts 
toward planning for and developing VLER[Footnote 25] and that they 
intend to maintain the status quo of their current interoperability 
initiatives until VLER is sufficiently mature. However, the plan does 
not discuss either when or how DOD and VA propose to identify and 
develop joint solutions to address the health IT requirements common 
to both departments' electronic health record systems. 

* In May 2010, the departments submitted a report to Congress in which 
they stated that they recognized the economic and strategic benefits 
of working together to meet their common health IT needs. The 
departments stated that they intended to identify opportunities for 
joint IT development or acquisition--through, for example, DOD's 
analysis of alternatives process--as they continued to develop their 
individual plans for electronic health record modernization. Although 
the report affirms the departments' intention to work together to meet 
their common health IT needs, it does not provide insight or specific 
details on the departments' agreed-upon plans or time frames for 
pursuing joint IT solutions. Furthermore, DOD and VA officials have 
stated that the departments intend to acquire or develop common 
components for their respective electronic health record "where it 
makes sense," though they have not articulated when and how such 
activities would occur. 

* DOD and VA officials have not yet determined whether the IT 
capabilities developed for the FHCC can or will be implemented at the 
departments' other medical facilities. Specifically, department 
officials have noted that the IT effort to establish interoperability 
capabilities between the departments' electronic health record systems 
at the FHCC is a pilot project.[Footnote 26] After 5 years, the 
departments intend to evaluate whether the FHCC's IT solution can be 
applied to other sites, or if VLER is sufficiently mature to fulfill 
the departments' needs for sharing medical information. Thus, the 
departments have delayed determining whether the FHCC IT solution has 
the potential to address the departments' common health IT needs, 
beyond those that are specific to the FHCC. 

DOD and VA have not yet formulated specific plans to address their 
joint electronic health record system requirements because they have 
placed priority on addressing their immediate needs including VLER, 
separate electronic health record system modernizations, and 
development of IT capabilities for the FHCC. However, until DOD and VA 
define a specific plan for how they intend to address their common 
electronic health record system requirements, they are not positioned 
to identify and develop joint solutions to meet their common needs. In 
addition, until DOD and VA develop specific plans, stakeholders will 
be left with an incomplete view of how the departments intend to meet 
their common health IT needs in an efficient and effective manner. 

DOD and VA's Joint Health Architecture Is Not Sufficiently Mature to 
Guide Identification and Development of Common IT Solutions: 

An enterprise architecture is a blueprint for organizational change 
defined in models that describe in both business and technology terms 
how an entity operates today (i.e., "as is") and how it intends to 
operate in the future (i.e., "to be"); it also includes a plan for 
transitioning to this future state. Specifically, an enterprise 
architecture describes an organization's interrelated business 
processes and business rules, information needs and flows, work 
locations and users, as well as the technologies--the hardware, 
software, data, communications, and security attributes--needed to 
support its business. 

We have long promoted the use of architectures to guide systems 
modernization efforts, in part because an architecture can greatly 
increase the chances that organizations' operational and IT 
environments will be configured to fully support their missions. 
Similarly, Congress, the Office of Management and Budget, and the 
federal Chief Information Officers Council have also stressed the 
importance of an architecture-centric approach to IT modernization 
through legislation and guidance.[Footnote 27] 

Recognizing the importance of enterprise architecture in addressing 
the challenges associated with implementing joint health IT 
initiatives, DOD and VA established the Health Architecture 
Interagency Group--an advisory subgroup within the Health Executive 
Council--in 2005. The group serves as the architectural governance 
body for joint DOD and VA health IT initiatives, and is responsible 
for overseeing the departments' efforts to develop a joint health 
architecture strategy. Among other things, the group works to identify 
opportunities for joint IT procurement and development and is to 
perform architecture reviews of joint DOD/VA health IT initiatives. 

Although VA and DOD are engaged in health-related enterprise 
architecture activities and have established an interagency governance 
body to manage the development of a joint health architecture, they 
have not yet established a joint health architecture to guide their 
efforts to address their common health care needs. 

As we have previously reported,[Footnote 28] DOD and VA each have 
ongoing enterprise architecture efforts. These include activities to 
define and develop architectures for their respective health business 
areas. For example, DOD continues to develop an architecture for MHS 
which describes its activities, business processes, and data. VA has 
begun documenting its health business processes and has drafted 
architecture-related tools such as a health business reference model. 

In addition to their individual enterprise architecture efforts, the 
departments have taken steps to improve their collaboration on 
enterprise architecture sharing initiatives related to health care. 
Specifically, DOD's and VA's Health Architecture Interagency Group has 
created several artifacts related to a joint health architecture, 
including: 

* a DOD/VA Target Health Standards Profile, a collection of annually 
updated technical, data, and security standards that DOD and VA are 
required to comply with as they develop joint health IT solutions; 

* a matrix that identifies current DOD and VA health information 
exchanges, as well as the policies, data, and standards governing 
these exchanges; and: 

* a document intended to provide an overview of the departments' joint 
health architecture, including a governance framework, standards, and 
the "as is" and "to be" architectures required to help the departments 
realize their shared health IT goals. 

Although the departments have taken steps toward developing and 
maintaining artifacts related to a joint health architecture, the 
artifacts themselves do not comprise an architecture capable of 
guiding the departments' joint health IT modernization efforts. For 
example, the joint health architecture overview document describes the 
governance organizations established to promote DOD/VA health efforts, 
yet it does not identify which of these organizations is ultimately 
responsible and accountable for the departments' joint health 
architecture. In addition, although the document outlines at a high 
level the "as is" architecture in terms of business and technical 
attributes of current DOD/VA interoperability efforts, the "to be" 
architecture does not describe the departments' planned future state 
relative to their business or technical needs. The document describes 
the departments' "to be" architecture only in terms of the status of 
DOD and VA's six interoperability objectives, which the departments 
report they have already met, and states their intentions to pursue 
VLER and participate in the Nationwide Health Information Network. 
Furthermore, the document lacks information on how the departments 
intend to transition from their current architecture to a planned 
future state--a key component of an enterprise architecture. 

DOD and VA officials recognize that their joint health architecture is 
not sufficiently mature to guide the identification and development of 
common IT solutions. The Health Architecture Interagency Group co-
chair characterized the joint health architecture as a large-scale, 
strategic effort that the departments plan to refine in the future. 
Further, the departments' joint health architecture overview states 
that DOD and VA plan to improve their architecture to include 
information about health information sharing initiatives. 
Nevertheless, until DOD and VA have an understanding of the common 
business processes and technologies that a joint health architecture 
could provide, the departments will continue to lack an essential tool 
for jointly addressing their common health IT needs. 

The Absence of Processes to Identify Joint IT System Investments 
Limits DOD's and VA's Ability to Pursue Common Health IT Solutions: 

IT investment management is a process for linking IT investment 
decisions to an organization's strategic objectives and business plans 
that focuses on selecting, controlling, and evaluating investments in 
a manner that minimizes risks while maximizing the return on 
investment. Among other things, GAO's IT investment management 
guidance[Footnote 29] states that agencies should establish a 
structured project selection process that includes cost, benefit, 
schedule, and risk elements, and qualitative measures for comparing 
and prioritizing alternative information systems investment projects; 
and that identifies and addresses possible IT investments and 
proposals that are conflicting, strategically unlinked, or redundant. 

Although DOD and VA have a number of organizations with 
responsibilities that relate to identifying and managing joint 
efforts--including IT--the departments lack joint IT investment 
management processes to help these organizations effectively fulfill 
their responsibilities. 

The Joint Executive Council and its subgroups have various 
responsibilities for managing joint IT initiatives. Specifically, the 
Council's responsibilities include: 

* identifying and overseeing implementation of changes in policies, 
procedures, and practices that promote mutually beneficial 
coordination or sharing of services and resources between the two 
departments; and: 

* identifying and assessing other opportunities for the coordination 
and sharing of services and resources between the departments that 
would provide improved delivery of services for DOD and VA 
beneficiaries. 

Additionally, the Health Executive Council is responsible for 
identifying opportunities (policy, operations, and capital planning) 
to enhance mutually beneficial coordination, and has established 
workgroups that are responsible for identifying and developing joint 
VA/DOD IT initiatives. In particular, the Information Management/ 
Information Technology workgroup is responsible for developing 
interfaces and implementing standards to improve the exchange of 
health data between DOD and VA. Additionally, the departments' Health 
Architecture Interagency Group has responsibility to seek "joint 
procurements and/or building of applications, where appropriate" and 
to "explore convergence of DOD and VA health information technology 
applications." 

Even though the establishment of these groups partially addresses the 
Joint Executive Council's responsibilities to manage DOD's and VA's 
joint IT initiatives, the Council has not taken the additional step to 
establish a joint process for selecting IT investments based on 
criteria that consider cost, benefit, schedule, and risk elements. 
Without establishing and using a process for selecting joint IT 
solutions, DOD and VA are impeded in identifying and selecting 
solutions that both meet their common health IT needs and provide 
better value and benefits to the government as a whole. 

Results: Lessons Learned: 

Lessons Learned Provide Opportunities for DOD and VA to Improve 
Ongoing Collaborative Efforts: 

DOD's and VA's experiences in developing VLER and IT system 
capabilities for the FHCC offer important lessons that the departments 
can use to improve their management of these efforts. First, the 
departments can improve their effort to implement VLER nationwide by 
the end of 2012 by developing a plan to guide the endeavor. Second, 
DOD and VA can improve their continuing effort to develop and 
implement new IT system capabilities for the FHCC by developing a 
project plan in accordance with established best practices. Unless the 
departments address these lessons, their ability to deliver expected 
capabilities to support their joint health IT needs is uncertain. 

VLER Is Proceeding without a Comprehensive Plan for Achieving 
Nationwide Implementation: 

Effective project planning is dependent on completing a number of key 
activities, including defining the scope of the project, establishing 
a schedule, and--based on these inputs--developing a project plan. 
Recognizing the importance of planning and oversight of the VLER 
initiative, the departments designated the Interagency Program Office 
as the single point of accountability for the coordination and 
oversight of VLER in September 2009.[Footnote 30] To fulfill this 
role, the office is responsible for activities such as developing and 
maintaining an integrated master schedule, a master program plan, and 
performance metrics for VLER, in coordination with DOD and VA. 

Although DOD and VA have identified a high-level approach for 
implementing VLER and designated the Interagency Program Office as the 
single point of accountability for the effort, they have yet to 
develop a comprehensive plan to guide the nationwide implementation of 
VLER as the stated deadline for achieving nationwide implementation by 
the end of 2012 approaches. Moreover, the departments have completed 
one VLER pilot project and the initial phase of another without 
attending to key planning activities that are necessary to guide the 
overall initiative. 

Shortly after VLER was announced in April 2009, DOD, VA, and the 
Interagency Program Office began working to define and plan for the 
initiative. In June 2009, the departments adopted a phased 
implementation strategy for VLER consisting of a series of 6-month 
pilot projects to exchange clinical health data, which began in August 
2009.[Footnote 31] Each VLER pilot project is intended to build upon 
the technical capabilities of its predecessor, resulting in a set of 
baseline capabilities to inform project planning and guide the 
implementation of VLER nationwide. However, the departments have not 
completed a plan that identifies the target set of capabilities that 
they intend to demonstrate in the pilot projects and then implement on 
a nationwide basis at all domestic DOD and VA sites by the end of 2012. 

In addition, the Interagency Program Office has not developed an 
approved integrated master schedule, master program plan, or 
performance metrics for the VLER initiative, as outlined in the 
office's charter. In November 2010, department officials asserted that 
the Interagency Program Office was in the process of developing a 
master program plan, which is expected to be approved in late 2011. 

Recently, Interagency Program Office officials stated that they have 
been focusing on developing individual schedules, project plans, and 
performance measures for each pilot effort. The office has developed a 
schedule and a project plan for the VLER pilot currently being 
conducted in Tidewater, Virginia, although it did not establish 
approved performance metrics before the pilot became operational. In 
addition, the office has not yet established a schedule, project plan, 
and performance measures for the next pilot project, which is 
scheduled to begin in January 2011. 

Unless DOD, VA, and the Interagency Program Office complete a project 
plan for VLER, the departments jeopardize the implementation of the 
capabilities they need to effectively share medical information with 
each other and the private sector by the end of 2012. 

Project Planning for the FHCC IT System Was Not Complete: 

Industry best practices and IT project management principles stress 
the importance of sound planning for any project, particularly an 
effort of the magnitude and complexity of the FHCC.[Footnote 32] Among 
other things, planning activities should include (1) defining project 
scope using a work breakdown structure, (2) estimating project cost 
based on the work breakdown structure, and (3) establishing a budget 
for project resources and schedule for project tasks. The above 
activities should be followed by documenting their results in a 
project plan that is approved by those responsible for implementing 
the plan. Carrying out these activities helps to ensure that projects 
deliver planned capabilities. 

Although DOD and VA performed various planning activities for the FHCC 
IT system, these activities were generally not completed in accordance 
with effective practices and do not help the departments effectively 
meet the FHCC's IT needs. 

* Defining scope: The departments did not define the project's scope 
using a work breakdown structure that identified the detailed 
activities that need to be completed to develop and implement the FHCC 
IT system. DOD and VA officials stated that the Joint Incentive Fund 
[Footnote 33] proposals described the scope of the project; however, 
the proposals provide only a high-level description of the project. 
Without developing a project scope definition that identified all 
detailed activities, the departments were not positioned to reliably 
estimate the project's cost and schedule. 

* Estimating cost: The project cost was not estimated using a work 
breakdown structure. DOD and VA estimated that the FHCC IT system 
would cost $100 million over 3 years. Officials from the departments 
characterized this estimate as "high-level" and stated that it was 
based on their experiences with previous development efforts. However, 
by not basing their estimate on a work breakdown structure, DOD and VA 
may not have reliably determined the total cost of the FHCC IT system. 

* Establishing a budget and schedule: A budget for requesting 
necessary project resources and for tracking project tasks based on 
the cost estimate was not created. A joint baseline schedule that 
could be used to track performance of the project was not created 
until 1 month after the departments began development work. Without 
timely development of a budget and schedule, DOD and VA did not have a 
basis for reliably determining their progress toward delivering 
planned IT capabilities. 

DOD and VA recognized the importance of having a project plan and 
included a funding request to develop such a plan, along with a 
request for money to perform requirements development, in their 
December 2007 proposal to obtain support from the Joint Incentive 
Fund. However, the departments used the funds they received in June 
2008 only for requirements development to the exclusion of project 
planning. In lieu of preparing a project plan based on the effective 
practices described above, the departments, according to DOD and VA 
officials, are using a collection of documents that they asserted 
constitute their project plan. Specifically, DOD officials stated that 
they use project documentation (such as design reviews and project 
status briefings) to guide its portion of the effort while VA uses a 
project plan that describes its portion of the IT development effort. 
However, this approach does not provide an integrated and 
comprehensive plan that documents DOD's and VA's commitments to 
completing development of IT system capabilities for the FHCC. 

Without performing effective project planning, DOD and VA have not 
formalized their shared project commitments and have jeopardized the 
departments' ability to fully and timely provide the IT system 
capabilities the FHCC needs. 

[End of section] 

Conclusions: 

DOD and VA face barriers in three key IT management areas--strategic 
planning, enterprise architecture, and IT investment management--that 
can be problematic for departments that have undertaken major IT 
efforts. First, the departments' joint strategic plan does not discuss 
how the departments intend to address their common requirements and 
they have not articulated a potential approach or timeline for working 
together to meet their common health IT needs. Second, DOD's and VA's 
joint health architecture, which could guide the departments in the 
identification and development of common IT solutions, is not 
sufficiently mature to provide such direction. Third, the departments 
have not established a process or criteria for selecting IT 
investments that best support their many common electronic health 
record requirements. These barriers result in part from the 
departments' decision to focus on developing a Virtual Lifetime 
Electronic Record, modernizing their separate electronic health record 
systems, and developing IT capabilities for the Federal Health Care 
Center, rather than determining the most efficient and effective 
approach to jointly addressing their common requirements. Because the 
departments continue to pursue their existing health information-
sharing efforts without fully establishing the key IT management 
capabilities described above, DOD and VA may be missing other 
opportunities to deploy joint solutions to address their common health 
care business needs. 

DOD's and VA's efforts to jointly develop VLER and the FHCC's IT 
capabilities offer important lessons that the departments can use to 
improve these endeavors. Specifically, these efforts highlight the 
importance of effective project planning to the successful development 
and implementation of capabilities needed to care for service members 
and veterans as these and the departments' future joint projects move 
forward. 

[End of section] 

Recommendations for Executive Action: 

To ensure that DOD and VA efficiently and effectively modernize their 
electronic health record systems to jointly address their common 
health care business needs, we recommend that the Secretaries of 
Defense and Veterans Affairs direct the Joint Executive Council to 
take the following actions: 

* Revise the departments' joint strategic plan to include information 
discussing their electronic health record system modernization efforts 
and how those efforts will address the departments' common health care 
business needs. 

* Further develop the departments' joint health architecture to 
include their planned future (i.e., "to be") state and a sequencing 
plan for how they intend to transition from their current state to the 
next generation of electronic health record capabilities. 

* Define and implement a process, including criteria that considers 
costs, benefits, schedule, and risks, for identifying and selecting 
joint IT investments to meet the departments' common health care 
business needs. 

We recommend that the Secretaries of Defense and Veterans Affairs 
strengthen their ongoing efforts to establish the Virtual Lifetime 
Electronic Record and the joint IT system capabilities for the Federal 
Health Care Center, by developing plans that include scope definition, 
cost and schedule estimation, and project plan documentation and 
approval. 

[End of section] 

Agency Comments and Our Evaluation: 

In oral comments on a draft of these briefing slides, DOD and VA 
officials, including the Military Health System's Director for 
External Relationship Management and the Veterans Health 
Administration's Deputy Chief Officer for Health Systems, generally 
agreed with our recommendations. The officials stated that the 
departments are focused on addressing their common health care system 
needs while also performing the departments' unique missions. In 
addition, the departments provided technical comments, which we 
incorporated in the briefing as appropriate. 

[End of section] 

Appendix I: Congressional Requesters: 

The Honorable Daniel Inouye: 
Chairman: 
Subcommittee on Defense: 
Committee on Appropriations: 
United States Senate: 

The Honorable Tim Johnson: 
Chairman: 
Subcommittee on Military Construction, Veterans Affairs, and Related 
Agencies: 
Committee on Appropriations: 
United States Senate: 

The Honorable Norman D. Dicks: 
Chairman: 
Subcommittee on Defense: 
Committee on Appropriations: 
House of Representatives: 

The Honorable Thad Cochran: 
Vice Chairman: 
Subcommittee on Defense: 
Committee on Appropriations: 
United States Senate: 

The Honorable Kay Bailey Hutchison: 
Ranking Member: 
Subcommittee on Military Construction, Veterans Affairs, and Related 
Agencies: 
Committee on Appropriations: 
United States Senate: 

The Honorable C.W. Bill Young: 
Ranking Member: 
Subcommittee on Defense: 
Committee on Appropriations: 
House of Representatives: 

[End of section] 

[End of Briefing slides] 

Appendix II: Comments from the Department of Defense: 

The Assistant Secretary Of Defense: 
Health Affairs: 
1200 Defense Pentagon: 
Washington, DC 20301-1200: 

January 10, 2011: 

Ms. Valerie C. Melvin: 
Director: 
Information Management and Human Capital Issues: 
U.S. Government Accountability Office: 
441 G Street, N.W. 
Washington, DC 20548: 

Dear Ms. Melvin: 

This is the Department of Defense's (DoD) response to the 
recommendations in the Government Accountability Office (GAO) Draft 
Report GA0-11-265, "DoD and VA Should Remove Barriers and Improve 
Efforts to Meet their Common System Needs," December 2010, (Engagement 
Code 310960). DoD acknowledges receipt of the draft report and will 
address each of the recommendations and ensure appropriate measures 
are carried out effectively. Enclosed are suggested technical comments 
and corrections to GAO's draft report. Please note that since the 
closing date of GAO's discovery phase for this report, the Departments 
have made significant collaborative progress in electronic health 
record (EHR) planning. 

On December 4, 2010, the Principal Advisor, EHR, to the Assistant 
Secretary of Defense, Health Affairs, and the Senior Advisor to the 
Secretary and Chief Technology Officer, Department of Veterans Affairs 
(VA), briefed the DoD-VA Joint Action Plan towards a common platform 
to the Vice Chairman of the Joint Chiefs of Staff and the Departments' 
Deputy Secretaries. Subsequently, the DoD-VA EHR Senior Coordinating 
Group established and staffed a collaborative structure for 
investigating and analyzing key objectives for the EHR planning 
efforts. Six teams were identified: Enterprise Architecture Team; Data 
Interoperability Team; Business Process Team; Systems Capabilities 
Team; Presentation Layer Team; and Mission Requirements & Performance 
Outcomes Team. The DoD-VA EHR Senior Coordinating Group intends to 
report collective team findings in early 2011. 

Thank you for the opportunity to review and comment on the draft 
report. The points of contact for additional information are Ms. Lois 
Kellett and Mr. Gunther Zimmerman. Ms. Kellett may be reached at 
Lois.Kellett@tma.osd.mil, or (703) 681-8836. Mr. Zimmerman may be 
reached at Gunther.Zimmerman@tma.osd.mil, or (703) 681-4360. 

Sincerely, 

Signed by: 

Jonathan Woodson, M.D. 

Enclosure: As stated: 

GAO Draft Report Dated December 2010: 
GA0-11-265 (Engagement Code 310960): 

"DoD and VA Should Remove Barriers and Improve Efforts to Meet their 
Common System Needs" 

Department of Defense Comments to GAO Recommendations: 

Recommendation: Revise the Departments' Joint Strategic Plan (JSP) to 
include information discussing their electronic health record (EHR) 
system modernization efforts, and how those efforts will address the 
Departments' common health care business needs. 

Department of Defense (DoD) Response: Concur. DoD, in collaboration 
with the Department of Veterans Affairs (VA), will revise the VA/DoD 
Joint Executive Council (JEC) JSP for Fiscal Year (FY) 2011-2013 to 
reflect EHR system modernization efforts. 

Recommendation: Further develop the Departments' joint health 
architecture to include their planned future (i.e., "to 14") state and 
a sequencing plan for how they intend to transition from their current 
state to the next generation of EHRs. 

DoD Response: Concur. DoD, in collaboration with VA, will update the 
DoD/VA Shared Health Architecture to include the "to be" state and 
explain how the departments intend to transition from the current 
state to the next generation of EHRs.
	
Recommendation: Define and implement a process, including criteria 
that considers costs, benefits, schedule, and risks, for identifying 
and selecting joint information technology (IT) investments to meet 
the Departments' common health care business needs. 

DoD Response: Concur. DoD, in collaboration with VA, will define and 
implement a process for identifying and selecting joint IT investments 
to meet the Departments' common health care business needs. 

[End of section] 

Appendix III: Comments from the Department of Veterans Affairs: 

Department Of Veterans Affairs: 
Washington DC 20420: 

January 20, 2011: 

Ms. Valerie Melvin: 
Director: 
Information Management and Human Capital Issues: 
U.S. Government Accountability Office: 
441 G Street, NW: 
Washington, DC 20548: 

Dear Ms. Melvin: 

The Department of Veterans Affairs (VA) has reviewed the Government 
Accountability Office's (GAO) draft report, "Electronic Health 
Records: DOD and VA Should Remove Barriers and Improve Efforts to Meet 
their Common System Needs" (GAO-11-265), and generally agrees with 
GAO's conclusions and concurs with GAO's recommendations to the 
Department. 

The enclosure specifically addresses GAO's recommendations and 
provides technical comments to the draft report. VA appreciates the 
opportunity to comment on your draft report. 

Sincerely, 

Signed by: 

John R. Gingrich: 
Chief of Staff: 

Enclosure: 

[End of letter] 

Enclosure: 

Department of Veterans Affairs (VA) Comments to Government 
Accountability Office (GAO) Draft Report: Electronic Health Records: 
DOD and VA Should Remove Barriers and Improve Efforts to Meet their 
Common Needs (GA0-11-265): 

GAO recommendation: To ensure that DOD and VA efficiently and 
effectively modernize their electronic health record systems to 
jointly address their common health care business needs, we recommend 
that the Secretaries of Defense and Veterans Affairs direct the Joint 
Executive Council to take the following actions: 

Recommendation 1: Revise the departments' joint strategic plan to 
include information discussing their electronic health record system 
modernization efforts and how those efforts will address the 
department's common health care business needs. 

VA Response: Concur. VA is revising its Electronic Health Record (EHR) 
modernization plan to focus on business drivers that require a 
modernized EHR along with the functional requirements of the provider 
and information requirements of the consumers to allow them to be more 
involved in their care. In the process of designing the new plan, VA 
is working collaboratively with the Department of Defense (DoD) to 
identify joint solutions. VA, in collaboration with DoD, will revise 
the VA/DoD Joint Executive Council Joint Strategic Plan for fiscal 
year (FY) 2011—2013 to reflect EHR system modernization efforts. 

Target Completion Date: to be determined upon further discussion with 
DoD. 

Recommendation 2: Further develop the departments' joint health 
architecture to include their planned future (i.e., "to be") state and 
a sequencing plan for how they intend to transition from their current 
state to the next generation of electronic health record capabilities. 

VA Response: Concur. VA and DoD have identified similarities in our 
future planned architectures and are currently working together at the 
business process, enterprise architecture, system capabilities and 
data model levels to identify opportunities for joint solutions. VA, 
in collaboration with DoD, will update the DOD/VA Shared Health 
Architecture to include the "to be" state and explain how the 
Departments intend to transition from the current state to the next 
generation EHR. 

Target Completion Date: to be determined upon further discussion with 
DoD. 

Recommendation 3: Define and implement a process, including criteria 
that considers costs, benefits, scheduled, and risks, for identifying 
and selecting joint IT investments to meet the departments' common 
health care business needs. 

VA Response: Concur. As VA and DoD complete the analysis of the scope 
of a common EHR way forward, a rough estimate of costs and schedule is 
planned for completion. VA, in collaboration with DoD, will define and 
implement a process for identifying and selecting joint IT investments 
to meet the departments' common health care business needs. 

Target Completion Date: to be determined upon further discussion with 
DoD. 

Recommendation 4: Strengthen their on-going efforts to establish VLER 
and the Joint IT system capabilities for the FHCC by developing plans 
that include scope definition, costs and schedule estimation, and 
project plan documentation and approval. 

VA Response: Concur. VA considers the Federal Health Care Center 
project plan, including scope definition, to be very detailed and well 
documented. As the project moves forward, these plans will be extended 
and strengthened. The VA cost estimate to date is on target and within 
budget. It is reported to the Veterans Health Administration and the 
Assistant Secretary for Information Technology and others at least 
every two months or upon request. Project documentation, software 
development processes, networks, security, and deployment follow all 
VA Office of Information and Technology (OIT) Program Management 
Accountability System requirements and are fully documented. At the 
time of the interviews for this report, OIT considers the VLER plan as 
in the development process. The VA VLER Enterprise Program Management 
Office (EMPO) has conducted many interdisciplinary and interagency 
meetings to determine and finalize the scope and timing of releases. 
The VA VLER EPMO is currently actively collaborating with DoD and the 
Interagency Program Office to finalize the VLER Concept of Operations. 

Target Completion Date: to be determined upon further discussion with 
DoD. 

[End of section] 

Appendix IV: Comments from the DOD/VA Interagency Program Office: 

Dod/VA Interagency Program Office: 
1700 North Moore Street: 
Arlington, Va 22209: 

January 24, 2011: 
10:42 A.M. 

Ms. Valerie C. Melvin: 
Director: 
Information Management & Human Capital Issues: 
U.S. Government Accountability Office: 
441 G Street, N.W. 
Washington, D.C. 20548: 

Dear Ms. Melvin: 

This is the DoD/VA Interagency Program Office's (IPO) response to the 
recommendations enclosed in the Government Accountability Office (GAO) 
Draft Report, "Electronic Health Records: DoD and VA Should Remove 
Barriers and Improve Efforts to Meet their Common System Needs," 
(Project No. GA0-11-265, GAO Code 310960). 

IPO acknowledges receipt of the draft audit report and concurs with 
the overall findings and recommendations. We have provided several 
suggested technical corrections in the enclosed formal response. 

Thank you for the opportunity to review and comment on the draft 
report. My point of contact for additional information is Mr. Ryan 
Cool, Ryan.Cool@osd.mil, 703-696-3636. 

Sincerely, 

Signed by: 

Debra M. Filippi: 
Director: 
DoD/VA Interagency Program Office: 

Enclosures: As stated: 

[End of section] 

Appendix V: GAO Contact and Staff Acknowledgments: 

GAO Contact: 

Valerie C. Melvin, (202) 512-6304 or melvinv@gao.gov: 

Staff Acknowledgments: 

In addition to the contact named above, Mark T. Bird (Assistant 
Director), Bradley Becker, Jeremy Brodsky, Heather A. Collins, Rebecca 
Eyler, Jacqueline Mai, Lee McCracken, Sylvia Shanks, and Adam Vodraska 
made key contributions to this report. 

[End of section] 

Footnotes: 

[1] GAO, Electronic Health Records: DOD and VA Have Increased Their 
Sharing of Health Information, but More Work Remains, [hyperlink, 
http://www.gao.gov/products/GAO-08-954] (Washington, D.C.: July 28, 
2008); Electronic Health Records: DOD's and VA's Sharing of 
Information Could Benefit from Improved Management, [hyperlink, 
http://www.gao.gov/products/GAO-09-268] (Washington, D.C.: Jan. 28, 
2009); Electronic Health Records: Program Office Improvements Needed 
to Strengthen Management of VA and DOD Efforts to Achieve Full 
Interoperability, [hyperlink, http://www.gao.gov/products/GAO-09-895T] 
(Washington, D.C.: July 14, 2009); Electronic Health Records: DOD and 
VA Efforts to Achieve Full Interoperability Are Ongoing; Program 
Office Management Needs Improvement, [hyperlink, 
http://www.gao.gov/products/GAO-09-775] (Washington, D.C.: July 28, 
2009); and Electronic Health Records: DOD and VA Interoperability 
Efforts Are Ongoing; Program Office Needs to Implement Recommended 
Improvements, [hyperlink, http://www.gao.gov/products/GAO-10-332] 
(Washington, D.C.: January 28, 2010). 

[2] Interoperability is the ability for different information systems 
or components to exchange information and to use the information that 
has been exchanged. 

[3] Interoperability is the ability for different information systems 
or components to exchange information and to use the information that 
has been exchanged. 

[4] Joint Executive Council and Health Executive Council, Report to 
Congress on Department of Defense and Department of Veterans Affairs 
Medical Information Technology (Washington, D.C., May 21, 2010). 

[5] GAO, Organizational Transformation: A Framework for Assessing and 
Improving Enterprise Architecture Management (Version 2.0), 
[hyperlink, http://www.gao.gov/products/GAO-10-846G] (Washington, 
D.C.: August 2010). 

[6] According to DOD, Composite Health Care System applications are 
now accessed through its modernized health information system, AHLTA. 

[7] To create BHIE, the departments drew on the architecture and 
framework of the information transfer system established by the FHIE 
project. Unlike FHIE, which provides a one-way transfer of information 
to VA when a service member separates from the military, the two-way 
interface allows clinicians in both departments to view, in real time, 
limited health data (in text form) from the departments' existing 
health information systems. 

[8] The name CHDR, pronounced "cheddar," combines the names of these 
two repositories. 

[9] The Joint Executive Council is comprised of the Deputy Secretary 
of Veterans Affairs; the Under Secretary of Defense for Personnel and 
Readiness; and the co-chairs of joint councils on health, benefits, 
and capital planning. The council meets on a quarterly basis. 

[10] The Health Executive Council is co-chaired by VA's Under Secretary 
for Health and DOD's Assistant Secretary of Defense for Health 
Affairs. DOD membership also includes the surgeons general for the 
military services. The council meets bimonthly. 

[11] President's Task Force to Improve Health Care Delivery for Our 
Nation's Veterans (May 26, 2003). 

[12] Serve, Support, Simplify: Report of the President's Commission on 
Care for America's Returning Wounded Warriors (July 30, 2007). 

[13] Pub. L. No. 110-181, Sec. 1635 (2008). 

[14] A service-oriented architecture approach is intended to identify 
and promote the shared use of common business capabilities across the 
enterprise, reduce redundancy, increase integration, and enable 
organizations to respond quickly to new business requirements. Under 
this approach, business functions and applications are defined and 
designed as discrete and reusable capabilities or services that may be 
under the control of different organizations. 

[15] According to department officials, DOD and VA decided to develop 
these capabilities in parallel, where each departments' IT 
organization creates, tests, and deploys enterprise quality software 
in their respective department, then jointly tests and deploys the 
software at the FHCC. 

[16] The DOD/VA Health Care Sharing Incentive Fund was authorized by 
Congress in the Bob Stump National Defense Authorization Act of 2003, 
Pub. L. No. 107-314, Sec. 721 (38 U.S.C. Sec. 8111(d)). The purpose of 
this fund is to provide seed money for creative sharing initiatives at 
facility, regional, and national levels to facilitate the mutually 
beneficial coordination, use, or exchange of health care resources, 
with the goal of improving the access to, and quality and cost- 
effectiveness of, the health care provided to beneficiaries of both 
departments. 

[17] Currently, the departments are focusing on the exchange of health 
information for the pilots, and not benefits and administrative data. 

[18] The Nationwide Health Information Network is defined as a set of 
standards, services, and policies that enable the secure exchange of 
health information over the Internet. 

[19] GAO, Electronic Health Records: DOD and VA Have Increased Their 
Sharing of Health Information, but More Work Remains, [hyperlink, 
http://www.gao.gov/products/GAO-08-954] (Washington, D.C.: July 28, 
2008); Electronic Health Records: DOD's and VA's Sharing of 
Information Could Benefit from Improved Management, [hyperlink, 
http://www.gao.gov/products/GAO-09-268] (Washington, D.C.: Jan. 28, 
2009); Electronic Health Records: Program Office Improvements Needed 
to Strengthen Management of VA and DOD Efforts to Achieve Full 
Interoperability, [hyperlink, http://www.gao.gov/products/GAO-09-895T] 
(Washington, D.C.: July 14, 2009); Electronic Health Records: DOD and 
VA Efforts to Achieve Full Interoperability Are Ongoing; Program 
Office Management Needs Improvement, [hyperlink, 
http://www.gao.gov/products/GAO-09-775] (Washington, D.C.: July 28, 
2009); and Electronic Health Records: DOD and VA Interoperability 
Efforts are Ongoing; Program Office Needs to Implement Recommended 
Improvements, [hyperlink, http://www.gao.gov/products/GAO-10-332] 
(Washington, D.C.: January 28, 2010). 

[20] [hyperlink, http://www.gao.gov/products/GAO-10-332]. 

[21] GAO, Veterans Affairs: Health Information System Modernization 
Far from Complete; Improved Project Planning and Oversight Needed, 
[hyperlink, http://www.gao.gov/products/GAO-08-805] (Washington, D.C.: 
June 30, 2008). 

[22] GAO, Information Technology: Management Improvements Are 
Essential to VA's Second Effort to Replace Its Outpatient Scheduling 
System, [hyperlink, http://www.gao.gov/products/GAO-10-579] 
(Washington, D.C.: May 27, 2010). 

[23] GAO, Information Technology: Opportunities Exist to Improve 
Management of DOD's Electronic Health Record Initiative, [hyperlink, 
http://www.gao.gov/products/GAO-11-50] (Washington, D.C.: October 6, 
2010). 

[24] The joint strategic plan describes the integrated information 
sharing goal as enabling the exchange of health and benefits data 
using secure and interoperable IT systems. Note that interoperability 
is the ability of two or more systems or components to exchange 
information and use the information that has been exchanged. 

[25] As previously mentioned, VLER's ultimate goal is to enable DOD, 
VA, and the private sector to exchange health, benefits, and 
administrative information using the Nationwide Health Information 
Network. Department officials have stated that VLER is intended to 
eventually replace some of the departments' current interoperability 
capabilities, such as BHIE. 

[26] The departments consider the entire FHCC effort--including the 
integrated governance structure and health business operations, as 
well as the IT--a pilot project. 

[27] See, for example, 40 U.S.C. §11315; the E-Government Act of 2002, 
44 U.S.C. §3602; and the Chief Information Officers Council, A 
Practical Guide to Federal Enterprise Architecture, Version 1.0 
(February 2001). 

[28] See, for example, GAO, DOD Business Systems Modernization: 
Military Departments Need to Strengthen Management of Enterprise 
Architecture Programs, [hyperlink, 
http://www.gao.gov/products/GAO-08-519] (Washington, D.C.: May 12, 
2008); Enterprise Architecture: Leadership Remains Key to Establishing 
and Leveraging Architectures for Organizational Transformation, 
[hyperlink, http://www.gao.gov/products/GAO-06-831] (Washington, D.C.: 
August 14, 2006); DOD Business Systems Modernization: Long-standing 
Weaknesses in Enterprise Architecture Development Need to Be 
Addressed, [hyperlink, http://www.gao.gov/products/GAO-05-702] 
(Washington, D.C.: July 22, 2005); Information Technology: Leadership 
Remains Key to Agencies Making Progress on Enterprise Architecture 
Efforts, [hyperlink, http://www.gao.gov/products/GAO-04-40] 
(Washington, D.C.: November 17, 2003). 

[29] GAO, Information Technology Investment Management: A Framework 
for Assessing and Improving Process Maturity, [hyperlink, 
http://www.gao.gov/products/GAO-04-394G] (Washington, D.C.: March 
2004). 

[30] The Interagency Program Office's mission is to serve as the 
single point of accountability for the coordination and oversight of 
Joint Executive Council-approved IT projects, data, and information 
sharing activities--including the VLER. 

[31] The Joint Executive Council approved this phased strategy for 
VLER in June 2009. 

[32] See Institute of Electrical and Electronics Engineers (IEEE), 
IEEE/EIA Guide for Information Technology, IEEE/EIA 12207.1-1997 
(April 1998) and Carnegie Mellon Software Engineering Institute, 
Capability Maturity Model Integration for Acquisition, Version 1.2 
(November 2007). 

[33] As mentioned previously, the Joint Incentive Fund is used by the 
departments to provide seed money for creative sharing initiatives at 
facility, regional, and national levels to facilitate the mutually 
beneficial coordination, use, or exchange of health care resources. 

[End of section] 

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