The VA's EHRM Accelerates Into FY27

The Department of Veterans Affairs (VA) is entering a pivotal phase of its Electronic Health Record Modernization (EHRM) initiative, creating a growing market for vendors and resellers supporting healthcare technology, infrastructure, cybersecurity, and data integration. With 26 planned deployments accelerating across VA medical facilities nationwide and increased investment in FY27, we see opportunities positioned to support modern infrastructure, secure connectivity, interoperable data, and reliable systems capable of supporting healthcare delivery for millions of veterans.

FY27 Funding Signals 

The VA's FY27 budget request includes approximately $4.24 billion for electronic health record modernization, an increase of roughly $840 million over FY26 enacted funding.

Of particular importance here, the request identifies approximately $745 million for infrastructure readiness and $727 million for program management, underscoring the scale of supporting technologies and services necessary to prepare facilities for deployment and maintain system performance.

The VA's budget priorities this year also identify infrastructure upgrades that are to be procured separately from the primary electronic health record system, with potential opportunities there for technology providers beyond the core modernization platform.

Where Technology Opportunities Are Emerging

Several technology categories stand to benefit as VA expands modernization across its healthcare network.

• IT Infrastructure and Hardware: Medical facilities require modern computing environments, servers, storage, networking equipment, and end-user devices capable of supporting new clinical applications and workflows.
• Cybersecurity: Protecting sensitive healthcare information will drive continued demand for zero trust architectures, identity and access management, endpoint security, continuous monitoring, and security assessments.
• Cloud and Data Management: Modern healthcare environments require scalable hosting, reliable backup and recovery, data migration, and interoperable systems that enable secure information exchange.
• Systems Integration and Testing: Connecting existing clinical applications, medical devices, and legacy systems creates demand for integration services, performance testing, and independent validation.
• Implementation and Technical Support: As deployments expand, facilities will require training, service desk capabilities, troubleshooting, and ongoing technical assistance to maintain operational continuity.

Site Opportunities

For BD teams, the VA's deployment schedule offers a practical roadmap for identifying potential customers and anticipating technology requirements based on the anticipated site rollouts. Plans to deploy the EHR system at 26 additional medical centers throughout calendar year 2027 are scheduled in six waves:

In January 2027, deployments are scheduled for four facilities in Milwaukee, Madison and Tomah, Wisconsin, and Iron Mountain, Michigan

In March 2027: Danville, Hines and Chicago

In May 2027: Fargo, North Dakota; Fort Meade, Hot Springs and Sioux Falls, South Dakota; and Minneapolis and St. Cloud, Minnesota

In July 2027: Des Moines and Iowa City, Iowa, and Grand Island and Omaha, Nebraska

In September 2027: Tacoma, Seattle and Vancouver, Washington; Portland, Oregon; and Boise, Idaho

In November 2027, the final wave includes four facilities: two in St. Louis and one in Poplar Bluff, Missouri, along with Marion, Illinois

Vendors and resellers should use these geographic and operational milestones to align account strategies with facility readiness requirements. Infrastructure assessments, equipment refreshes, connectivity improvements, cybersecurity validation, and integration activities may need to occur well ahead of scheduled implementation dates.

EHRM’s Setbacks and Future

The program continues to face scrutiny surrounding cost, implementation schedules, system performance, and patient safety. A September 2026 GAO assessment identified outstanding recommendations related to program management, testing, and operational performance. These challenges are continuing to reinforce the importance of solutions that improve reliability, reduce implementation risk, strengthen security, and support uninterrupted patient care.

EHRM represents a multiyear technology opportunity extending well beyond the healthcare application itself. As deployments accelerate, demand for the infrastructure, cybersecurity, integration, and support services underpinning the initiative will remain central to its success.

For vendors and resellers, the opportunity lies in understanding where VA is deploying next, what technologies facilities need to become operationally ready, and how those requirements align with existing solutions and procurement pathways.

The companies that translate VA's modernization roadmap into targeted account strategies will be better positioned to compete for the technology investments supporting the next generation of veterans' healthcare.

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About the Author:
Susanna Patten is a senior manager on the TD SYNNEX Public Sector Market Insights team covering tech trends across the Public Sector. Susanna has over 15 years of experience in public sector IT procurement. Her responsibilities at TD SYNNEX Public Sector include driving market intelligence asset production, ensuring the quality and relevance of deliverables from the Market Insights team, and aligning these insights with sales opportunities.