Historically, patient health information has been scattered across paper records kept by different caregivers in many different locations. Thus, the move toward collecting, storing, retrieving, and transferring these records electronically can significantly improve the quality and efficiency of care. This is especially true in the case of military personnel and veterans, because they tend to be highly mobile and may have health records at multiple facilities both within and outside the United States. Interoperability allows patients’ electronic health information to be available from provider to provider, regardless of where it originated. Achieving this depends on, among other things, the use of agreed-upon health data standards (e.g., standardized language for prescriptions and laboratory testing) and the ability of systems to use the information that is exchanged. Currently, both VA and DOD operate separate electronic systems to create and manage electronic health records. VA uses its Veterans Health Information Systems and Technology Architecture (VistA), a system that the department developed in-house and that consists of 104 separate computer applications; while DOD uses the Armed Forces Health Longitudinal Technology Application (AHLTA), which consists of multiple legacy medical information systems developed from customized commercial software applications. Since 1998, VA and DOD have undertaken a patchwork of initiatives intended to allow their health information systems to exchange information and increase interoperability. Among others, these have included initiatives to share viewable data in existing (legacy) systems, link and share computable data between the departments’ updated heath data repositories, and jointly develop a single integrated system. Table 1 below summarizes a number of the departments’ key efforts. In addition to the initiatives mentioned in table 1, the departments took a variety of actions to respond to provisions in the National Defense Authorization Act (NDAA) for Fiscal Year 2008, which required them to jointly develop and implement fully interoperable electronic health record systems or capabilities in 2009. The act also directed them to set up an interagency program office (referred to as the IPO) to serve as a single point of accountability for these efforts. Department officials stated that their previous initiatives, along with meeting six interoperability objectives established by their Interagency Clinical Informatics Board, had enabled them to meet the deadline for full interoperability established by the act. However, we previously identified a number of challenges that the departments faced in managing their efforts in response to the act and to address their common health IT needs. In particular, although these initiatives have helped to increase data-sharing in various ways, they have been plagued by persistent management challenges that have hampered progress toward fully interoperable electronic health record capabilities. In March 2011, the secretaries of the two departments announced that they would develop a new, joint integrated electronic health record system (referred to as iEHR). This was intended to replace the departments’ separate systems with a single common system, thus sidestepping many of the challenges they had previously encountered in trying to achieve interoperability. However, in February 2013, about 2 years after initiating iEHR, the secretaries announced that the departments were abandoning plans to develop a joint system, due to concerns about the program’s cost, schedule, and ability to meet deadlines. The IPO reported spending about $564 million on iEHR between October 2011 and June 2013. In place of the iEHR initiative, VA stated that it would modernize VistA, while DOD planned to buy a commercially available system to replace AHLTA. The departments stated that they would ensure interoperability between these updated systems, as well as with other public and private health care providers. In December 2013, the IPO was re-chartered and given responsibility for establishing technical and clinical standards and processes to ensure that health data between the two departments (and other providers) are integrated. We issued several prior reports regarding this approach, in which we noted that the departments did not substantiate their claims that it would be less expensive and faster than developing a single, joint system. We also noted that the departments’ plans to modernize their two separate systems were duplicative and stressed that their decisions should be justified by comparing the costs and schedules of alternate approaches. We therefore previously recommended that the departments develop cost and schedule estimates that would include all elements of their approach (i.e., modernizing both departments’ health information systems and establishing interoperability between them) and compare them with estimates of the cost and schedule for the single-system approach. If the planned approach was projected to cost more or take longer, we recommended that they provide a rationale for pursuing such an approach. VA and DOD agreed with our prior recommendations and stated that initial comparison indicated that the current approach would be more cost effective. However, as of October 2015, the departments have not provided us with a comparison of the estimated costs of their current and previous approaches. On the other hand, with respect to their assertions that separate systems could be achieved faster, both departments have developed schedules that indicate their separate modernizations are not expected to be completed until after the 2017 planned completion date for the previous single system approach. In light of the departments’ not having yet implemented a solution that allows for seamless electronic sharing of health care data, the National Defense Authorization Act (NDAA) for Fiscal Year 2014 included requirements pertaining to the implementation, design, and planning for interoperability between VA’s and DOD’s electronic health record systems. Among other actions, provisions in the act directed each department to (1) ensure that all health care data contained in their systems (VA’s VistA and DOD’s AHLTA) complied with national standards and were computable in real time by October 1, 2014, and (2) deploy modernized electronic health record software to support clinicians while ensuring full standards-based interoperability by December 31, 2016. Our August 2015 report noted that the departments have engaged in several near-term efforts focused on expanding interoperability between their existing electronic health record systems. For example, the departments analyzed data related to 25 “domains” identified by the Interagency Clinical Informatics Board and mapped health data in their existing systems to standards identified by the IPO. The departments also expanded the functionality of their Joint Legacy Viewer—a tool that allows clinicians to view certain health care data from both departments in a single interface. In addition, VA and DOD have both moved forward with plans to modernize their respective electronic health record systems. VA has developed a number of plans for its VistA modernization effort (known as VistA Evolution), including an interoperability plan and a road map describing functional capabilities to be deployed through fiscal year 2018. According to the road map, the first set of capabilities was to be delivered in September 2014, and was to include access to the Joint Legacy Viewer, among other things. For its part, DOD issued a request for proposals and developed a series of planning documents for its systems modernization effort (referred to as the Defense Healthcare Management System Modernization (DHMSM) program). Further, the department announced that the DHMSM contract was awarded on July 29, 2015, and that it plans for the new system to reach initial operating capability by December 2016. The IPO has also taken actions to facilitate departmental interoperability efforts. These included developing technical guidance that details how VA and DOD systems are to exchange information consistent with national and international standards. The office also developed a joint interoperability plan, which summarizes the departments’ actions in this area, and a health data interoperability management plan, which outlines a high-level approach and roles and responsibilities for achieving health data exchange and terminology standardization. While these are important steps toward greater interoperability, VA and DOD nonetheless did not, by the October 1, 2014, deadline established by the 2014 National Defense Authorization Act for compliance with national data standards, certify that all health care data in their systems complied with national standards and were computable in real time. Additionally, the departments acknowledged that they do not expect to complete a number of key activities related to their electronic health record system efforts until sometime after the December 31, 2016, statutory deadline for deploying modernized electronic health record software with interoperability. Specifically, deployment of VA’s modernized VistA system at all locations and for all users is not planned until 2018. Meanwhile, DOD has yet to define all the additional work that will be necessary beyond 2016 to fully deploy the DHMSM system, and full operational capability is not planned to occur until the end of fiscal year 2022. Thus, for the departments, establishing modernized and fully interoperable health record systems is still years away. A significant concern is that VA and DOD had not identified outcome- oriented goals and metrics that would more clearly define what they aim to achieve from their interoperability efforts and the value and benefits these efforts are intended to yield. As we have stressed in prior work and guidance, assessing the performance of a program should include measuring its outcomes in terms of the results of products or services. In this case, such outcomes could include improvements in the quality of health care or clinician satisfaction. Establishing outcome-oriented goals and metrics is essential to determining whether a program is delivering value. The IPO is responsible for monitoring and reporting on the departments’ progress in achieving interoperability and coordinating with VA and DOD to ensure that these efforts enhance health care services. Toward this end, the office issued guidance that identified a variety of process- oriented metrics to track, for example, the percentage of data domains that have been mapped to national standards. The guidance also identified metrics to be reported that relate to tracking the amount of certain types of data being exchanged between the departments’ existing initiatives, such as laboratory reports exchanged from DOD to VA through the Federal Health Information Exchange and patient queries submitted by providers through the Bidirectional Health Information Exchange.