What's Happening?
The Department of Veterans Affairs (VA) is under scrutiny from lawmakers over the costs and deployment strategy of its new Oracle Health electronic health record (EHR) system. During a House Veterans’
Affairs Technology Modernization Subcommittee hearing, concerns were raised about the project's total cost, estimated at $37 billion, and the VA's readiness for simultaneous deployments at medical facilities. The VA plans to deploy the system at 13 sites, starting with four in Michigan in mid-2026, followed by nine additional facilities. The project, initially contracted with Cerner for $10 billion, has faced technical and safety issues, leading to a pause in rollouts. Oracle acquired Cerner in 2022, rebranding it as Oracle Health.
Why It's Important?
The modernization of the VA's health record system is crucial for improving healthcare delivery to veterans. The project's high cost and the VA's readiness for simultaneous deployments raise concerns about taxpayer money and the potential impact on veteran care. Successful implementation could enhance healthcare efficiency and interoperability with the Pentagon's health records. However, failure to address these issues could lead to further delays and increased costs, affecting the quality of care for veterans.
What's Next?
The VA plans to resume deployments in mid-2026, with a focus on Michigan-based sites. Lawmakers are urging the VA to provide a detailed cost breakdown and ensure readiness for simultaneous deployments. The VA and Oracle Health are working on a market-based approach for future deployments, aiming to enhance efficiencies and share best practices. The success of these deployments will be critical for the project's future and could influence further investments in healthcare technology.
