VA moves forward with $330 million Oracle Health EHR deployment

The Department of Veterans Affairs (VA) is pushing forward with its plan to overhaul its Electronic Health Record (EHR) system, investing $330 million to expand the rollout of Oracle Health’s platform. The new system is set to be deployed at four VA medical facilities in Michigan—Ann Arbor, Battle Creek, Detroit, and Saginaw—with a planned launch in 2026.

This latest investment is part of a larger effort to replace the VA’s outdated health record infrastructure, some of which has been in use since the eighties. The goal is to create a unified digital system that improves care coordination and administrative efficiency across VA medical centers.

The VA has also committed $300 million to improve the system’s administration and another $29 million to enhance identity and access management features. These contracts fall under a broader agreement originally signed with Cerner in 2018 for $9.99 billion. When Oracle acquired Cerner in 2022 for $28.3 billion, it inherited this large-scale project.

Despite the renewed commitment to the initiative, the road to implementation has been anything but smooth. Past rollouts have been fraught with technical issues and operational disruptions, forcing the VA to pause deployment efforts and reassess its strategy.

Challenges in previous rollouts

The first major implementation of the Oracle Health EHR system took place at the Mann-Grandstaff VA Medical Center in Spokane, Washington, in 2020. Shortly after the system went live, users reported a range of issues, including workflow inefficiencies and patient safety concerns. Within weeks, more than 60 safety-related problems were identified, prompting an investigation by lawmakers and healthcare officials.

Although some of these problems have been addressed, concerns persist about the system’s overall reliability and usability. The VA has stated that it will not proceed with additional deployments until major flaws are resolved. However, with the Michigan rollout now scheduled, officials believe they have made enough progress to move forward.

Lawmakers and veterans’ groups raise concerns

Throughout the EHR rollout process, lawmakers have voiced strong concerns about the system’s effectiveness and the VA’s handling of the project. At a House Veterans’ Affairs Committee hearing in September of the previous year, Rep. Greg Murphy (R-N.C.) sharply criticized the Oracle Health platform, calling it “not a system that is meant for the VA medical system” and urging the department to abandon it altogether.

Similarly, Rep. Matt Rosendale (R-Mont.), chair of the House subcommittee overseeing technology modernization, argued that the VA needed a major course correction. He pointed out that despite years of work and billions of dollars spent, the EHR system remained riddled with functionality issues.

In July of last year, Rosendale went further, stating that the Oracle Health system was “simply not dependable enough” to meet the basic needs of veterans. He specifically highlighted problems with the pharmacy software, which had led to prescription errors and delays in medication fulfillment.

Veterans’ advocacy groups have also expressed skepticism about the system’s impact. Many worry that technical failures could put patient safety at risk, particularly for older veterans who rely on consistent, uninterrupted access to medical care.

Moving ahead with improvements and implementation

Despite these setbacks and criticisms, the VA is moving forward with its EHR modernization effort. The agency has adopted a more gradual, step-by-step approach to deployment, ensuring that lessons learned from early rollouts inform future implementations.

As part of this strategy, the VA and Oracle Health have collaborated on 176 system enhancements, which officials say have led to a 60% reduction in reported technical problems. These improvements focus on streamlining workflows, fixing software bugs, and making the system more intuitive for healthcare providers.

Another key component of the revised plan is a stronger emphasis on user training and support. The VA is working closely with Oracle to provide in-depth training sessions for medical staff at upcoming deployment sites. On-site technical teams will also be available to assist with troubleshooting and system adjustments in real-time.

Overcoming staff concerns and ensuring success

Addressing resistance from VA staff remains a challenge, as many workers have expressed frustration with past system failures. To ease concerns, the VA is focusing on user design improvements, refining the interface to make it more efficient and less disruptive to daily workflow. A system that enhances patient care rather than complicating it.

While skepticism remains, there is cautious optimism that the revised approach will lead to a more successful rollout. Officials say they will closely monitor the Michigan launch and use feedback from frontline medical staff to guide future decisions.

Ultimately, the VA’s renewed commitment to the Oracle Health EHR project reflects a broader push toward modernizing veteran healthcare. By replacing outdated systems with a more advanced digital platform, the department hopes to improve care coordination, reduce administrative burdens, and provide veterans with better access to their medical records.

With billions already invested and more deployments on the horizon, the coming years will be critical in determining whether this ambitious effort succeeds or becomes another troubled government IT project.