Leidos Awarded $180M Defense Health Agency Virtual Health Task Order

Rhea-AI Summary

Leidos awarded contract to provide Defense Health Agency with new virtual health capabilities

Positive

• Leidos awarded next-generation contract worth $180 million
• Contract aims to enhance patient experience and deliver better outcomes
• Amwell's Converge platform to replace MHS Video Connect solution
• New platform includes self-guided wellness and behavioral health support

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• None.

RESTON, Va., Oct. 19, 2023 /PRNewswire/ -- Leidos (NYSE:LDOS), a FORTUNE® 500 science and technology leader, was recently awarded a next-generation contract to provide the Defense Health Agency (DHA) with new virtual health capabilities for providers and patients. The hybrid CPIF/FFP task order was awarded by DHA's Program Executive Office Defense Healthcare Management Systems (PEO DHMS).  If all options are exercised, the task order has a 22-month period of performance with a total value of $180 million.

"Digital First addresses DHA's goal of better outcomes, new processes, innovation and increased standardization based on evidence," said Jason McCarthy, Senior Vice President, Military and Veterans Health Solutions, Leidos. "As part of our overall MHS GENESIS effort to enhance patient experience, we, along with Amwell, are looking forward to delivering this solution for DHA's providers and patients."

Under the contract, the Leidos Partnership for Defense Health (LPDH) will replace the Military Health System (MHS) Video Connect solution with Amwell's Converge™ platform. It will start at five initial sites followed by a phased enterprise roll-out. Digital First will bring new capabilities and enablement to MHS GENESIS, including digital technology. Leidos will also provide the necessary adoptions, support to change management and work processes to deliver targeted outcomes to MHS GENESIS users.

"Through our world class platform Converge, Amwell is already enabling hybrid care across the commercial marketplace," said Ido Schoenberg, M.D., Chairman and CEO of Amwell. "With this agreement, we are pleased to offer our unique capabilities and help improve access to quality care for MHS' community of users. We are grateful for their service and honored to have been chosen to join Leidos in supporting the Department of Defense as it seeks to adopt and extend the benefits of hybrid care to the Military Health System."

Using advanced, evidenced-based and commercially-available capabilities, LPDH is designed to rapidly deliver an advanced digital health platform to meet patients where they are. The new platform includes self-guided wellness and behavioral health support. This should enable seamless escalation to on-demand provider engagement to obtain medical care and advice from any location. Digital First will support the entire community of MHS GENESIS users, including active-duty service members, family members, retirees and health professionals across the continuum of care.

Through integrated platform solutions, Leidos and Amwell will help reduce burdens on care teams, improve the mental health and wellness of beneficiaries, help reduce healthcare costs and optimize the effective utilization of DHA's clinical resources across their global enterprise.

About Leidos

Leidos is a Fortune 500® technology, engineering, and science solutions and services leader working to solve the world's toughest challenges in the defense, intelligence, civil, and health markets. The company's 46,000 employees support vital missions for government and commercial customers. Headquartered in Reston, Virginia, Leidos reported annual revenues of approximately $14.4 billion for the fiscal year ended December 30, 2022. For more information, visit www.Leidos.com.

Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended December 30, 2022, and other such filings that Leidos makes with the SEC from time to time.  Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

Contact:
Melissa Dueñas
(571) 526-6850
Melissa.L.Duenas@leidos.com                           

Thomas Doheny
(571) 474-4735
Dohenyt@leidos.com

Lauren Reddington
(202) 924-2226
Lauren.A.Reddington@leidos.com

 

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SOURCE Leidos

What is the value of the contract awarded to Leidos?

The contract has a total value of $180 million.

What will Amwell's Converge platform replace?

Amwell's Converge platform will replace the MHS Video Connect solution.

What new capabilities will Digital First bring to MHS GENESIS?

Digital First will bring new capabilities and enablement to MHS GENESIS, including digital technology.

Who will benefit from the new platform?

The new platform will benefit the entire community of MHS GENESIS users, including active-duty service members, family members, retirees, and health professionals.

What is the goal of the contract?

The goal of the contract is to enhance patient experience, deliver better outcomes, and increase standardization based on evidence.