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

VA Budget and ModernizationHouse Veterans' Affairs Subcommittee on Technology Modernization · February 24, 2025 · 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 at▶ 0:07:39

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 contract▶ 0:11:42, that 69% of users are dissatisfied and 75% believe the system doesn't maximize efficiency▶ 0:11:42, and that the only independent cost estimate is $32 billion, more than double VA's original $16.1 billion estimate▶ 0:12:13.

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

• Dr. Neil Evans, VA Acting Program Executive Director, EHRM▶ 0:20:49: Described the 2023 program reset, the successful joint VA-DOD go-live at the Lovell Federal Health Care Center in North Chicago▶ 0:22:20, and plans to resume deployment in Michigan while continuing improvement work▶ 0:23:52; later said VA lost 8 probationary employees and 16 staff took the deferred resignation offer, against roughly 250 of 330 approved positions filled▶ 0:46:02▶ 0:46:32.

• The Honorable Seema Verma, Oracle Health EVP▶ 0:26:24: 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 Cerner▶ 0:28:26; 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 far▶ 0:54:36▶ 0:55:06.

• Mr. David Case, VA Acting Inspector General▶ 0:31:28: Said OIG has published 22 reports since April 2020, more than half identifying patient-safety concerns▶ 0:31:28, and flagged unresolved issues including inconsistent no-show outreach standards between legacy and new-EHR sites▶ 0:32:29 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 Issues▶ 0:36:01: Testified GAO has made 18 total recommendations to VA, only one implemented▶ 0:41:59; said cost estimates range from $16.1 billion to nearly $50 billion, neither reflecting recent changes▶ 0:38:02, and that at mid-2026 about 94% of VA medical centers will still lack the new system▶ 0:38:02; recommended an independent operational assessment (IV&V) that VA has not completed▶ 0:38:57.

• Rep. John James / questioning as Chairman▶ 0:40:29: Pressed Harris on reliability of the $32.7 billion estimate▶ 0:40:59 and whether VA fully understands its own problems▶ 0:44:01.

• Rep. (Mr. Latrell, as addressed)▶ 0:51:04: Questioned Dr. Evans on why VA never conducted an IV&V test like DOD did▶ 0:52:35, pressed Verma on Oracle's cost projections and accountability given the program is roughly $12.5 billion in with the possibility of ballooning further▶ 0:54:06, 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 review▶ 0:56:37, 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 standardization▶ 1:02:09 and Evans's confirmation VA agrees it needs a revised integrated master schedule and life-cycle cost estimate▶ 1:04:40.

• 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 sites▶ 1:29:29▶ 1:30:00.

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 projection▶ 0:11:12▶ 0:11:42▶ 0:12:13.

• 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 current▶ 0:38:02▶ 0:38:27.

• Harris stated that of GAO's 18 total recommendations to VA on EHRM, only one has been implemented▶ 0:41:59.

• Sharp exchange: Verma argued accelerating deployment is the way to control costs▶ 0:55:06, while Chairman James countered that the committee has not endorsed acceleration given the program's track record, including the prior "immediate freeze"▶ 0:58:38▶ 0:59:08.

• 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 filled▶ 0:46:02▶ 0:46:32.

• Verma stated Oracle disagrees with the $50 billion cost estimate and that of roughly $10 billion spent to date, Oracle received about $5 billion▶ 0:55:06▶ 0:55:36.

• 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"▶ 1:18:18▶ 1:29:29▶ 1:30:00.

• 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 approach▶ 0:38:57▶ 0:45:02▶ 0:52:35▶ 1:22:50.

• 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 reset▶ 0:28:26.

• 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 finalized▶ 1:24:21▶ 1:24:52.

• 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 morning▶ 1:06:41▶ 1:08:11.

Metadata

CommitteeHouse Veterans' Affairs Subcommittee on Technology Modernization
Chamber / CongressHouse · 119th Congress
DateFebruary 24, 2025
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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