HHS awards EHR grants.

The U.S. Department of Health and Human Services (HHS) recently awarded four contracts worth a combined $18.6 million for the development of electronic health records (EHR) systems in 12 U.S. regions that will serve as models for the nation, according to The New York Times.

Under the contracts, Accenture, Computer Sciences, IBM, and Northrop Grumman each will develop EHR systems for three regions over the next year. The companies must establish personal EHRs and provide physicians with affordable online access to patient records, diagnostic information, and billing records.

The EHR systems also will improve efforts to monitor and respond to public health emergencies such as disease epidemics or bioterrorist attacks. The companies can use different technologies in their EHR systems, but all of the systems must be compatible, and users must be able to exchange EHR information among institutions.

The Times reported that $18.6 million is "a fraction of the investment" that the companies will need to develop the EHR systems, but "competition for the four contracts was fierce because the winners may have an early lead in the market."

According to reports, Accenture will operate in Kentucky, Tennessee, and West Virginia. Computer Sciences will develop systems for California, Indiana, and Massachusetts. IBM will work on systems for New York and North Carolina, and Northrop Grumman will develop systems in California and Ohio.

National Coordinator for Health Information Technology David Brailer said the government will not operate or procure the networks. He said he hopes the four contracts will "guide further investment over the next several years."