Military Health System and TRICARE Lose Control Over IT Budget

The Defense Department has quietly shifted management and oversight of health information technology, including procurements from the Military Health System and the TRICARE Management Activity, to Frank Kendall, under secretary of Defense for acquisition, technology and logistics, Nextgov has learned.

Multiple industry sources confirmed the shift. One official said the move reflects frustration among senior Pentagon leaders with MHS efforts to procure new health IT systems, both independently and in partnership with the Veterans Affairs Department to develop the integrated electronic heath record. The departments have spent at least $1 billion over the past five years pursuing an integrated system.

Kendall will exercise tight control and oversight of the health IT procurement budget, the official said, noting the shift is a major blow to MHS and TRICARE. Pentagon officials did not respond to a request for comment.