According to The Federal New Network and FedScoop, the Department of Veterans Affairs has significantly expanded its Electronic Health Record Modernization (EHRM) contract with Oracle Health, increasing the contract ceiling by nearly $17 billion and raising the total potential value to approximately $27 billion. This change marks a major escalation from the original 2018 agreement, a 10‑year, $10 billion contract with Cerner, which Oracle later acquired in 2022. The updated contract also adds three optional one‑year ordering periods, extending the potential performance timeline through May 2031.
The expansion reflects the VA’s need for additional time, funding, and technical support to complete deployments across its 164 medical centers. After an 18‑month pause due to reliability issues and patient safety concerns, deployments resumed in April 2026 and have since expanded to sites in Michigan, Ohio, and Kentucky, with upcoming implementations planned for Indiana, Alaska, and Cleveland. Despite progress, the system is currently live at only 14 VA medical centers, underscoring the scale and complexity of replacing legacy infrastructure across one of the nation’s largest healthcare systems.
The contract increase has triggered heightened congressional scrutiny. Lawmakers from both parties have raised concerns about rising costs, now estimated at up to $48 billion for full deployment and sustainment, along with ongoing issues flagged by the Government Accountability Office. These include user dissatisfaction and patient safety risks. In response, House committees have moved to subpoena Oracle executives, seeking accountability for the program’s delays, cost overruns, and operational challenges. This oversight signals that while the expanded contract gives the VA more runway, it also intensifies pressure to deliver measurable improvements in system performance and veteran care outcomes.