Watchdog: VA’s Oracle Health EHR project could cost nearly $50B

Lawmakers are demanding greater transparency from the Department of Veterans Affairs regarding the long-term costs and completion timeline of its troubled EHR modernization project with Oracle Health, NextGov reported Feb. 24.

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During a House Veterans’ Affairs Technology Modernization Subcommittee hearing, lawmakers pressed VA officials for a clear roadmap to finish the EHR overhaul, which has been plagued by delays and escalating costs.

Cost estimates for the project have varied widely, ranging from $16.1 billion to nearly $50 billion, according to Carol Harris, director of information technology and cybersecurity at the Government Accountability Office.

“While the latter is more realistic, neither reflects the many changes and delays to the program,” Ms. Harris told lawmakers.

Seema Verma, executive vice president of Oracle Health, pushed back against the $50 billion estimate and argued that accelerating the system’s deployment—building on progress made during the reset phase launched in April 2023—would ultimately reduce costs.

The VA originally signed a $10 billion contract with Cerner in May 2018 to implement the new system. After Oracle acquired Cerner in 2022, the contract was revised to more than $16 billion. The EHR system still needs to be deployed across more than 160 VA medical facilities before the contract expires in May 2028.

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