Skip to content
MarketScale
‹ Back to IndustriesHealthcare

VA’s $4.8B facilities budget makes the EHR rollout a network upgrade

The Department of Veterans Affairs (VA) has a $4.8 billion facilities budget for FY 2026 that includes $1 billion earmarked for federal Electronic Health Record (EHR) readiness. This allocation will enhance the VA's network infrastructure by investing in fiber, closets, and switches. The aim is to integrate these elements into the facilities' capital plans.

This story was produced through MarketScale. See how Healthcare teams put it to work with Executive Thought Leadership.

By MarketScale Newsroom · Department of Veterans AffairsVeterans Health AdministrationHealthcare FacilitiesHospital Facilities Management
Share
Learn this in 60 seconds

Key facts, context, and what it means, in one minute.

:60
0:001:00
VA’s $4.8B facilities budget makes the EHR rollout a network upgrade

Key takeaways

01

The VA allocated $1 billion of its facilities budget for federal EHR readiness.

02

Funds will be used for upgrading network infrastructure components like fiber and switches.

03

Integration of these upgrades is part of the facilities' capital planning.

Get featured

Want to get featured in MarketScale Healthcare?

Create a free MarketScale workspace and get your company's expertise featured across our Healthcare coverage. No credit card, no demo required.

Request an invite

VA’s biggest facilities budget line this year is not a chiller plant or a roof. It’s the electronic health record rollout, and the wiring that has to be in place before the first clinician logs in.

Health Facilities Management reported that the U.S. Department of Veterans Affairs set aside a record $4.8 billion for fiscal year 2026 under the Veterans Health Administration’s nonrecurring maintenance program, funding upgrades, repairs and broader improvements to its health care facilities. The publication also said the package includes $1 billion to get sites ready to connect to the federal electronic health record system, which is planned to be implemented nationwide by 2031.

For operators, that $1 billion matters because it formalizes a reality many health systems learn the hard way: major clinical IT migrations break on campus infrastructure. Not servers. Pathways, closets, switching capacity, and the sheer logistics of getting cable through occupied buildings without taking down clinical operations.

EHR readiness is showing up as fiber, closets, and switch refreshes

Health Facilities Management’s reporting gets unusually specific about what “getting ready for the federal EHR” looks like on the ground. The Dayton (Ohio) VA Medical Center, one of nine VA facilities moving to the federal EHR in 2026, has been upgrading infrastructure across a 283-acre campus with more than 60 buildings, including adding roughly 38 miles of fiber-optic cable and Category 6 cabling.

The story notes the cable runs were shortened to mitigate potential latency issues. That’s a tell for how the program is being engineered: not simply “more bandwidth,” but tighter performance targets that drive new pathways and redesigned intermediate distribution. Dayton also upgraded data closet cores and switches, according to Health Facilities Management.

When an EHR program budgets for fiber, it’s admitting the cutover window is only as good as the closets behind the walls.

Dayton’s IT backbone work has also improved internal networks used by building management systems and physical security systems, alongside external networks like internet access, Health Facilities Management reported. That detail is operational gold for facilities and security leaders: the same capital project that supports clinical workflows can also remove friction from BAS segmentation, camera upgrades, and badge system refreshes if those programs are coordinated instead of sequenced in conflict.

The $4.8B plan puts hard numbers on what gets bundled, and what doesn’t

The VA’s FY 2026 nonrecurring maintenance total breaks into several buckets, according to Health Facilities Management: $2.8 billion for repairing and upgrading outdated infrastructure systems, $500 million for major building upgrades, and another $500 million aimed at modernizing medical centers for current and future care. The additional $1 billion for EHR preparation sits alongside those facility-centric categories, not inside them.

That accounting structure is a procurement and governance clue. It suggests EHR readiness work will increasingly be scoped, competed, and scheduled like a facility infrastructure program, with the EHR timeline acting as the forcing function. It also implies that projects that touch both sides, say, network segmentation that affects BAS, cameras, and clinical devices, will need clearer ownership than “IT will handle it.”

Health Facilities Management also described patient-facing modernization, such as renovating fourth-floor patient rooms at the Olin E. Teague Veterans’ Center in Temple, Texas, including conversion to single-occupancy rooms and additions like lifts and private bathrooms. Operators shouldn’t read that as a separate storyline. It’s part of the same operating thesis: VA is funding clinical experience upgrades while simultaneously funding the technical backbone that enables new care models and documentation requirements.

Why VA’s operating model changes the playbook for vendors and peer systems

This matters for more than federal procurement because VA’s care system is both enormous and closely interconnected. A Veterans Health Administration brief in Health Affairs described VA as an integrated provider network, made up of 168 medical centers plus more than 1,000 outpatient clinics, along with 250 brick-and-mortar pharmacies and seven mail-order pharmacies. Health Affairs said that structure, paired with centralized tools such as a national formulary, has long helped VA standardize operations and negotiate aggressively on pharmacy.

The same integrated footprint changes how infrastructure standards propagate during EHR programs. Once the system decides what “good” looks like for closets, fiber counts, switching, segmentation, and endpoint policies, those standards can quickly become de facto requirements for multiple sites and successive waves. For suppliers, it raises the value of being aligned to VA’s reference architectures. For other health systems, it creates a public-sector benchmark for how much physical plant work is getting pulled into what is often treated as a software program.

The practical lesson is simple: the EHR schedule is now a construction schedule, and the bill of materials looks like a network refresh.

There’s also a sequencing implication. If a campus is already planning BAS controller replacements, camera expansions, or a physical access control refresh, Dayton’s example suggests those programs may be cheaper and less disruptive when bundled with the EHR-driven backbone rebuild, because pathways, labeling, and closet power and cooling can be handled once.

Where this lands in 2026 work plans and specs

  • For facilities and IT program leaders: when an EHR “readiness” scope arrives, ask for the site’s latency and segmentation requirements in writing, because Health Facilities Management’s reporting shows VA is designing cable runs to performance targets, not just capacity.
  • For network and cabling contractors: use Dayton’s reported scale, about 38 miles of fiber across a 283-acre, 60+ building campus, as a sanity check when estimating pathway work, labeling, testing, and the coordination time required to stay out of clinical downtime windows.
  • For security and BAS owners: confirm whether backbone upgrades explicitly include improvements for building management and physical security traffic, as Dayton’s project did, and align your refresh cycles to avoid ripping out newly installed switching or re-patching closets twice.
  • For procurement teams: separate “facility infrastructure” buys from “EHR application” buys on purpose, but force a shared acceptance test. If the network backbone is a prerequisite, it should have measurable handoff criteria before EHR go-live dates are committed.

Featured companies

Your experts belong here

Every story in MarketScale Healthcare starts with a company putting its clinicians, service-line leaders, and field engineers on the record. Buyers are already reading this topic. The only question is whose experts they find.

Service-line buyers vet vendors quietly, and your clinicians become the proof they find while doing it.

Get your team featuredSee how it works15 minutes, straight to a calendar.

About the author

MarketScale Newsroom
MarketScale NewsroomEditorial Team, MarketScale

The MarketScale Newsroom reports on the companies, technologies, and trends shaping 16 B2B industries. It turns primary sources and expert commentary into clear, useful coverage for the people doing the work.

Follow Healthcare Insights

Get new expert content in your inbox.

Healthcare: are you visible to AI?

Before they reach out, Healthcare buyers ask AI engines which vendors to trust. See how AI describes your company today, and where competitors show up instead.

Free workspace

You just read one Healthcare expert. Your company is full of them.

This article was produced through MarketScale. The same platform turns your clinicians, service-line leaders, and field engineers into the articles, video, and social content Healthcare buyers are searching for. Create a free workspace and see it with your own people. No credit card, no demo required.

NPS +73 · 1,000+ creators · 38+ countries

What you get, free

Your own MarketScale Studio workspace
One video edit a month, on us
AI writing, editing, and publishing tools
In-platform coaching to learn the system

More Healthcare Insights

SILMO Paris 2026 brings smart glasses and AI into the purchasing cycle

SILMO Paris 2026 brings smart glasses and AI into the purchasing cycle

SILMO Paris 2026 is focusing on integrating smart glasses and AI into the purchasing processes for optical retailers and labs. The event is anticipated to attract around 34,000 visitors and feature 950 exhibitors, indicating significant interest in AI imaging workflows and smart-glass innovations. The agenda highlights a future direction towards advanced technology in optical retail and laboratory settings.

  • 01SILMO Paris 2026 will host nearly 34,000 visitors and 950 exhibitors.
  • 02The event focuses on AI imaging workflows and smart-glass innovations for optical retailers and labs.
  • 03Significant interest is shown in integrating advanced technology within optical retail processes.

Aug 29, 2026

Epic is turning its EHR into an AI command center, and CIO plans just got tighter

Epic is turning its EHR into an AI command center, and CIO plans just got tighter

Epic is transforming its Electronic Health Record (EHR) system into an AI-powered command center to enhance healthcare operations. The company is fast-tracking the release of its agent tools, Cosmos data, and new APIs for health system IT. This shift signifies a move from pilot projects to broader platform adoption.

  • 01Epic is converting its EHR system into an AI command center.
  • 02The fast-tracked release of agent tools and APIs is underway for health IT systems.
  • 03The focus is shifting from pilot projects to full platform implementation.

Aug 29, 2026

The Cost of Waiting: Why Healthcare Can't Afford Slow Decisions with Mark Van Sumeren

The Cost of Waiting: Why Healthcare Can't Afford Slow Decisions with Mark Van Sumeren

The healthcare industry faces significant consequences when delayed decision-making occurs. Prompt and efficient action is crucial to prevent adverse impacts on patient care and operational efficiency. Addressing this issue requires a commitment to more agile and informed decision processes.

  • 01Delayed decision-making in healthcare can lead to negative impacts on patient care and operational efficiency.
  • 02Healthcare organizations are encouraged to adopt agile decision-making processes to improve effectiveness.
  • 03Implementing informed and prompt decision-making strategies can mitigate the risks of inefficiencies and poor patient outcomes.

Aug 28, 2026

Explore More Healthcare Insights

Read more expert perspectives from across Healthcare.

Browse Healthcare Hub

About the Expert

MarketScale Newsroom
MarketScale Newsroom

Editorial Team

MarketScale

The MarketScale Newsroom reports on the companies, technologies, and trends shaping 16 B2B industries. It turns primary sources and expert commentary into clear, useful coverage for the people doing the work.

For B2B teams

Your experts could be publishing here

Stories like this one run on content MarketScale captures from real practitioners. See how your team's expertise becomes coverage in Healthcare and beyond.

Book a 15-minute demo

Or call us. No forms required. We pick up. 214-945-2512