Department of HHS FY 2018 IT Budget Observations
Published: June 29, 2017
The Department of Health and Human Services has submitted a $5.7B information technology budget for FY 2018, not including grants to state and local governments.
Late last month the White House released its full FY 2018 budget request which included details on IT budgets. HHS was among a number of agencies that showed a declining FY 2018 budget as compared to FY 2017.
HHS’ IT and Development, Modernization and Enhancements (DME) Budgets
HHS is requesting $5.7B in total IT funding, a 3% decrease over FY 2017 enacted levels.
- Grants account for $8.2B of the total HHS IT budget.
- Proposed potential contractor addressable budget (total IT budget less the cost of government FTEs is $5.1B (90%) of HHS’ IT budget.
- DME accounts for $1.1B, or 19%, of the total IT budget, a 12% decrease from FY 2017 enacted levels.
- 556 total investments; the top 10 represent 35% of the total IT budget at $2B.
- $405M is slated for IT security spending, a 3.9% increase over FY 2017 levels.
- $921M is slated for provisioned IT investments which includes cloud investments. $21M is considered DME and $900M O&M.
- Notable agency changes include a 30% decrease at Administration for Children and Families, a 3% decrease at Health Resources and Services Administration, a 16% decrease at Centers Disease Control and Prevention, and a 7% increase at Indian Health Service. Although the total discretionary budget of National Institutes of Health is slated for major cuts, the IT budget only shows a proposed 1% decrease.
Noteworthy IT Investments
Delving into the details of HHS’ IT investments and initiatives gives deeper insight into their priorities, which is largely infrastructure-focused. Here are just five initiatives that stand out among others due to relative size, budget growth, and/or proportion of new development spending.
- CMS IT Infrastructure (On-going): IT infrastructure and platform for Medicare and Medicaid. $624M, (+7%), 0% DME
- CMS Federally Facilitated Marketplace (FFM): Provides a platform for organizing the health insurance marketplace to help consumers and small businesses shop for coverage. $278M, (-10%), 55% DME
- NIH IT Computational Infrastructure and Services: Provides shared/dedicated hosting and data storage for applications or services across NIH. $272M, (+4%), 0% DME
- NIH IT End User Devices, Tools & Support: Support of end user devices, peripherals, software and IT support. $145M, (+0%), 0% DME
- CDC Information Technology Infrastructure: CDC plans to reduce costs and gain efficiencies through their consolidation of services into a central organizational unit, IT Svcs Office (ITSO), reporting to the agency CIO. $121M, (0%), 2% DME