From Reset to Rollout: Can the VA EHRM Program Finally Deliver?

VA Budget and ModernizationHouse Veterans' Affairs Subcommittee on Technology Modernization · 2025-02-24 · 119th Congress
The House Veterans' Affairs Subcommittee on Technology Modernization held this hearing to examine the status of VA's Electronic Health Record Modernization (EHRM) program with Oracle, ahead of planned deployments at four Michigan VA medical centers (Ann Arbor, Battle Creek, Detroit, and Saginaw) beginning in mid-2026. Begins at 0:07:39
Transcript
Highlights

Title

VA and Oracle Electronic Health Record Program Prepares to Resume Rollout

Purpose

The House Veterans' Affairs Subcommittee on Technology Modernization held this hearing to examine the status of VA's Electronic Health Record Modernization (EHRM) program with Oracle, ahead of planned deployments at four Michigan VA medical centers (Ann Arbor, Battle Creek, Detroit, and Saginaw) beginning in mid-2026. Witnesses from VA, Oracle, GAO, and the VA Office of Inspector General testified on the program's cost, schedule, staffing, and readiness following a nearly two-year pause. Begins at0:07:39

Who spoke

Chairman John James / "Chairman Barrett" as addressed (R-MI)0:07:39: Opened noting the Oracle EHR is implemented in under 4% of medical centers after nearly 7 years of a 10-year contract0:11:42, that 69% of users are dissatisfied and 75% believe the system doesn't maximize efficiency0:11:42, and that the only independent cost estimate is $32 billion, more than double VA's original $16.1 billion estimate0:12:13.

Ranking Member Nikki Budzinski (D-IL)0:12:43: Raised concerns about outstanding OIG/GAO recommendations before further go-lives0:14:45, the rocky rollout of the "3B" pharmacy bidirectional interface deployed that weekend0:15:46, and how recent VA workforce reductions could affect the EHRM integration office0:16:16.

Dr. Neil Evans, VA Acting Program Executive Director, EHRM0:20:49: Described the 2023 program reset, the successful joint VA-DOD go-live at the Lovell Federal Health Care Center in North Chicago0:22:20, and plans to resume deployment in Michigan while continuing improvement work0:23:52; later said VA lost 8 probationary employees and 16 staff took the deferred resignation offer, against roughly 250 of 330 approved positions filled0:46:020:46:32.

The Honorable Seema Verma, Oracle Health EVP0:26:24: Cited more than 3,000 functional changes made during the reset and an 80% drop in patient-safety ticket filings since Oracle's acquisition of Cerner0:28:26; said Oracle disagrees with the $50 billion cost estimate and noted VA has paid Oracle about $5 billion of the roughly $10 billion spent so far0:54:360:55:06.

Mr. David Case, VA Acting Inspector General0:31:28: Said OIG has published 22 reports since April 2020, more than half identifying patient-safety concerns0:31:28, and flagged unresolved issues including inconsistent no-show outreach standards between legacy and new-EHR sites0:32:29 and the need for an integrated master schedule that has been open "for several years"0:34:30.

Ms. Carol Harris, GAO Director of IT and Cybersecurity Issues0:36:01: Testified GAO has made 18 total recommendations to VA, only one implemented0:41:59; said cost estimates range from $16.1 billion to nearly $50 billion, neither reflecting recent changes0:38:02, and that at mid-2026 about 94% of VA medical centers will still lack the new system0:38:02; recommended an independent operational assessment (IV&V) that VA has not completed0:38:57.

Rep. John James / questioning as Chairman0:40:29: Pressed Harris on reliability of the $32.7 billion estimate0:40:59 and whether VA fully understands its own problems0:44:01.

Rep. (Mr. Latrell, as addressed)0:51:04: Questioned Dr. Evans on why VA never conducted an IV&V test like DOD did0:52:35, pressed Verma on Oracle's cost projections and accountability given the program is roughly $12.5 billion in with the possibility of ballooning further0:54:06, and pushed Verma for a confidence estimate on Michigan's success ("better than 50" percent)1:10:12.

Chairman (continuing questioning)0:56:07: Challenged Evans on whether reliance on end-user change requests substitutes for a genuine IV&V review0:56:37, and later pressed Evans and Verma on whether the system could go live in Michigan "today"1:15:46.

Budzinski (second round)1:01:39: Asked Evans and Verma what accelerated deployment would require, drawing out Verma's emphasis on standardization1:02:09 and Evans's confirmation VA agrees it needs a revised integrated master schedule and life-cycle cost estimate1:04:40.

Case and Harris (accelerated-timeline questioning)1:17:48: Both said VA has not shown a schedule justifying an accelerated 2028–2029 full rollout; Harris called full deployment to the remaining 160 sites by May 2028 effectively impossible given it took roughly six to seven years to deploy to just 10 sites1:29:291:30:00.

Key moments

Chairman James cited that the Oracle EHR is deployed at under 4% of medical centers nearly 7 years into a 10-year contract, with 69% user dissatisfaction and a $32 billion independent cost estimate versus VA's original $16.1 billion projection0:11:120:11:420:12:13.

Harris testified that with two years left on the Oracle-Cerner contract, about 94% of VA medical centers will still lack the new EHR as of mid-2026, and that cost estimates range from $16.1 billion to almost $50 billion, with neither figure current0:38:020:38:27.

Harris stated that of GAO's 18 total recommendations to VA on EHRM, only one has been implemented0:41:59.

Sharp exchange: Verma argued accelerating deployment is the way to control costs0:55:06, while Chairman James countered that the committee has not endorsed acceleration given the program's track record, including the prior "immediate freeze"0:58:380:59:08.

Evans disclosed VA lost 8 probationary employees and 16 staff accepted deferred resignation from the EHRM integration office, against an approved staff level of 330 with only about 250 currently filled0:46:020:46:32.

Verma stated Oracle disagrees with the $50 billion cost estimate and that of roughly $10 billion spent to date, Oracle received about $5 billion0:55:060:55:36.

Case and Harris both said VA has not produced the integrated master schedule needed to evaluate any accelerated timeline, and Harris said it took VA six to seven years to reach 10 sites, making completion of the remaining 160 sites by May 2028 "impossible"1:18:181:29:291:30:00.

GAO recommended an independent verification and validation (IV&V) test as an IT best practice that helped DOD's Oracle-Cerner deployment succeed; Evans defended VA's reliance on end-user change requests and internal reviews instead, while Harris disagreed with that approach0:38:570:45:020:52:351:22:50.

Verma disclosed patient-safety ticket filings dropped 80% since Oracle's Cerner acquisition and that more than 3,000 functional changes were made to the EHR during the reset0:28:26.

Chairman James pressed Evans on what "success" metrics Oracle and VA must meet before expanding beyond Michigan; Evans said 8 of 9 core metrics have defined thresholds, with the ninth still being finalized1:24:211:24:52.

Evans confirmed the pharmacy "3B" bidirectional interface — originally intended to be delivered in February 2024 — finally rolled out over the hearing weekend, with some issues addressed that morning1:06:411:08:11.

Metadata

CommitteeHouse Veterans' Affairs Subcommittee on Technology Modernization
Chamber / CongressHouse · 119th Congress
Date2025-02-24
TypeHearing
Witnesses
Ms. Carol Harris — Director, Information Technology and Cybersecurity Issues, U.S. Government Accountability Office
The Honorable Seema Verma — Executive Vice President, Oracle Health and Oracle Life Sciences, Oracle Corporation
Dr. Neil Evans, M.D. — Acting Program Executive Director, U.S. Department of Veterans Affairs, Electronic Health Record Modernization Integration Office
Mr. David Case — Acting Inspector General, U.S. Department of Veterans Affairs, Office of Inspector General
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