Leidos awarded CDC's National Health Safety Network modernization contract

Rhea-AI Summary

Leidos (NYSE:LDOS) has been awarded a $51 million contract by the CDC to modernize the National Healthcare Safety Network (NHSN) over a five-year period. The company will leverage its data management and mission software expertise to enhance the NHSN platform, which is important for patient safety and healthcare delivery across the U.S.

Since 2003, Leidos' collaboration with the CDC has supported over 160,000 users at more than 38,000 facilities. The NHSN facilitates electronic messaging from health records, informs infection prevention, monitors healthcare system capacity, tracks vaccination uptake, and helps prevent the spread of threats like COVID-19 and antimicrobial-resistant infections.

This contract extends Leidos' support in providing critical data to understand prevention efforts and practices in healthcare, ultimately determining the quality and safety of care delivered in U.S. healthcare facilities.

Positive

• Awarded $51 million contract by CDC for NHSN modernization
• Five-year contract period ensures stable revenue stream
• Opportunity to leverage expertise in data management and mission software
• Continued collaboration with CDC since 2003, demonstrating long-term partnership
• Serves nearly all U.S. hospitals, nursing homes, dialysis facilities, and ambulatory surgery centers

Negative

• None.

Insights

Financial Analyst

The $51 million contract awarded to Leidos by the CDC represents a significant win for the company. While the contract value may not be substantial relative to Leidos' annual revenue (which was $14.4 billion in 2022), it's a strategic victory that reinforces Leidos' position in the healthcare IT sector. The five-year period provides stable, long-term revenue and showcases the company's ability to secure government contracts.

This contract renewal demonstrates Leidos' strong relationship with the CDC and its expertise in healthcare data management. It could potentially lead to future opportunities in the public health sector. Investors should view this positively as it contributes to the company's recurring revenue stream and enhances its reputation in the healthcare IT market.

Healthcare IT Expert

The NHSN modernization contract is a testament to Leidos' capabilities in healthcare data management and security. The platform's expansion to cover over 38,000 facilities and 160,000 users highlights its critical role in the U.S. healthcare system. The contract's focus on modernization suggests potential for innovative developments in healthcare data analytics and interoperability.

Leidos' commitment to advancing the NHSN application could lead to improved patient outcomes and more efficient healthcare delivery. The platform's ability to track various health metrics, including COVID-19 and antimicrobial resistance, positions Leidos at the forefront of public health informatics. This contract solidifies Leidos' role in shaping the future of healthcare data management and could open doors to additional healthcare IT projects.

Public Health Analyst

The NHSN's expansion to cover nearly all U.S. hospitals, nursing homes, dialysis facilities and ambulatory surgery centers underscores its critical importance in public health surveillance. Leidos' continued involvement in this project positions the company as a key player in national health security efforts. The platform's ability to monitor healthcare system capacity and track vaccination uptake is particularly valuable in the context of ongoing and future public health challenges.

The contract's focus on modernization could lead to more robust data analytics capabilities, potentially enhancing early warning systems for emerging health threats. This could have far-reaching implications for public health policy and preparedness. While the financial impact on Leidos may be modest, the strategic importance of this contract in the public health sector should not be underestimated.

RESTON, Va., Sept. 3, 2024 /PRNewswire/ -- Leidos (NYSE:LDOS), a Fortune® 500 innovation company, was recently awarded the National Healthcare Safety Network (NHSN) Development, Maintenance, Support, and Modernization contract by the Centers for Disease Control and Prevention (CDC), National Center for Emerging and Zoonotic Infectious Diseases. Leidos will leverage its data management and mission software expertise to continue delivering a secure NHSN platform, including the necessary support applications and inputs from partnering federal agencies. The contract has a total value of $51 million over a five-year period of performance.

"NHSN is a critical cornerstone in enhancing patient safety and healthcare delivery across the U.S.," said Liz Porter, Leidos Health & Civil Sector President. "Since the inception of NHSN in 2003, our collaboration with the CDC has empowered over 160,000 users at more than 38,000 facilities with reliable and actionable data. Our combined efforts ensure the secure transmission of healthcare data across evolving sites of care, driving improvements in patient outcomes and fostering system modernization and efficiency."

Leidos will work to continue to advance and modernize the NHSN application. NHSN facilitates electronic messaging directly from electronic health records, informs rapid, tailored infection prevention, and allows decision-makers to monitor healthcare system capacity. Additionally, the platform tracks vaccination uptake in healthcare settings, monitors blood safety errors, and helps prevent the spread of emerging and enduring threats, such as COVID-19, healthcare associated infections, and antimicrobial-resistant infections.

The NHSN serves nearly all U.S. hospitals, nursing homes, dialysis facilities, and ambulatory surgery centers. This contract will extend Leidos' support in providing the critical data necessary to understand the success of prevention efforts and practices in healthcare, ultimately determining the quality and safety of care delivered in U.S. healthcare facilities.

About Leidos

Leidos is a Fortune 500^® innovation company rapidly addressing the world's most vexing challenges in national security and health. The company's global workforce of 48,000 collaborates to create smarter technology solutions for customers in heavily regulated industries. Headquartered in Reston, Virginia, Leidos reported annual revenues of approximately $15.4 billion for the fiscal year ended December 29, 2023. 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 29, 2023, 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:    

Alyssa Pettus
(571) 526-6743
alyssa.t.pettus@leidos.com 

Brandon VerVelde
(571) 526-6257
Brandon.p.vervelde@leidos.com 

View original content to download multimedia:https://www.prnewswire.com/news-releases/leidos-awarded-cdcs-national-health-safety-network-modernization-contract-302235551.html

SOURCE Leidos Holdings, Inc.

FAQ

What is the value and duration of Leidos' (LDOS) contract with the CDC for NHSN modernization?

Leidos (LDOS) has been awarded a $51 million contract by the CDC for the National Healthcare Safety Network (NHSN) modernization, with a five-year period of performance.

How many facilities and users does Leidos' NHSN platform support as of September 2024?

As of September 2024, Leidos' collaboration with the CDC has empowered over 160,000 users at more than 38,000 facilities with reliable and actionable data through the NHSN platform.

What are the main functions of the NHSN platform that Leidos (LDOS) will continue to develop?

Leidos (LDOS) will continue to develop the NHSN platform to facilitate electronic messaging from health records, inform infection prevention, monitor healthcare system capacity, track vaccination uptake, and help prevent the spread of threats like COVID-19 and antimicrobial-resistant infections.

Which healthcare sectors will benefit from Leidos' (LDOS) NHSN modernization contract?

The NHSN modernization contract will benefit nearly all U.S. hospitals, nursing homes, dialysis facilities, and ambulatory surgery centers, as the platform serves these healthcare sectors.