A VA spokesperson confirmed to The Register that the agency has authorized a $330 million payment to Oracle for its EHR software and support services. The funding will facilitate the deployment of the EHR system at four new Michigan locations—Ann Arbor, Battle Creek, Detroit and Saginaw—slated to go live in 2026.
The newly approved payments are part of a broader $300 million agreement aimed at optimizing the VA’s EHR management system, alongside a $29 million contract dedicated to improving identity and access management. These agreements, which were initially disclosed late last year, fall under the scope of the VA’s original $9.99 billion contract with Cerner, first signed in 2018.
In addition to expanding to Michigan, the Oracle Health EHR system will continue supporting VA medical centers already using the platform, including facilities in Spokane and Walla Walla, Wash.; Columbus, Ohio; Roseburg and White City, Ore.; and North Chicago, Ill.
Oracle acquired Cerner in 2022 for $28.3 billion, inheriting the VA contract alongside Cerner’s work on an interoperable EHR system for the U.S. Department of Defense. The goal was to replace outdated VA systems—some dating back four decades—with a modern, unified platform.
However, implementation has been plagued by persistent issues. The initial deployment at Spokane’s Mann-Grandstaff VA Medical Center in 2020 revealed dozens of safety concerns, leading to scrutiny from both lawmakers and healthcare professionals. A 2022 Senate Veterans Affairs Committee hearing highlighted 60 identified flaws, prompting Oracle executives to pledge fixes before focusing on financial considerations.
Following a series of delays, the VA announced in April 2023 that it was indefinitely pausing the rollout to address ongoing software defects and workflow disruptions. At the time, then-VA Secretary Denis McDonough emphasized that both Oracle and the agency needed to be held accountable for delivering a system that met the needs of veterans and healthcare staff.
Despite progress in resolving some technical challenges, critical issues remain, particularly within the pharmacy module and patient referral routing system. The VA and Oracle maintain that improvements will continue alongside preparations for future site activations.