Lawmaker expresses concerns about VA’s Oracle rollout

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Rep. Nikki Budzinski, D-Ill., is raising concerns that staffing shortages and a proposed reduction in force at the Department of Veterans Affairs could complicate the agency’s timeline for deploying its Oracle Health EHR system, Nextgov/FCW reported May 1.

Ms. Budzinski, the ranking member of the House Veterans’ Affairs Technology Modernization Subcommittee, said ongoing vacancies and potential budget cuts may jeopardize the VA’s EHR modernization efforts.

The VA paused most EHR rollouts in 2023 following reports of safety and usability issues, but plans to resume deployments at 13 sites by 2026.

As part of cost-cutting measures, the department has proposed eliminating up to 83,000 positions and canceling certain contracts, including some tied to the Oracle Health project. Ms. Budzinski warned that these proposed cuts are compounding existing workforce gaps. The VA reported more than 40,000 vacancies in 2023.

VA officials have said the planned reductions will not impact mission-critical operations, including clinical staff and healthcare roles. They noted that roughly 300,000 positions have been exempted from the federal hiring freeze initiated under President Donald Trump.

Ms. Budzinski also expressed concern about the potential impact on the VA’s research programs. More than half of the department’s 6,500 researchers are term-limited employees, who could be affected by workforce reductions. She and nine other Democratic lawmakers recently sent a letter to VA Secretary Denis McDonough requesting details on how the proposed cuts could affect ongoing research.

In a written statement to Becker’s, VA Press Secretary Pete Kasperowicz said there are “no plans or discussions” regarding budget cuts and noted that the Trump administration is instead proposing increased funding for the department. A May 2 White House press release highlighted expanded investments in veteran-specific healthcare services at VA medical centers.

The VA signed a $10 billion contract with Cerner in 2018 to replace its legacy health records system — a deal that has since grown to more than $16 billion. Oracle acquired Cerner in 2022 and rebranded the platform as Oracle Health.

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