Why it Matters

The House Veterans' Affairs Committee unanimously voted to subpoena Oracle executives over a Veterans Affairs (VA) electronic health records modernization (EHRM) project that has nearly quintupled in cost, but lawmakers departed a September 2 hearing without clear answers on taxpayer exposure. Representative Maxine Dexter (D-OR) introduced the motion to compel testimony from Oracle leaders Larry Ellison and Michael Sicilia. The committee's 19-0 subpoena vote signaled rare bipartisan frustration over an effort that has consumed billions in federal funds while leaving 58 percent of VA staff believing the new system increases patient safety risks.

VA Secretary Doug Collins has called the EHR modernization project a priority and has accelerated the effort as part of a plan to rapidly build momentum for the modernization project. VA Secretary Doug Collins has called the EHR modernization project a priority and has accelerated the effort as part of a plan to rapidly build momentum for the modernization project.

The committee's 19-0 subpoena vote signaled rare bipartisan frustration over an effort that has consumed billions in federal funds while leaving 58 percent of VA staff believing the new system increases patient safety risks. Representative Maxine Dexter (D-OR) introduced the motion to compel testimony from Oracle leaders Larry Ellison and Michael Sicilia.

The Big Picture

The VA renegotiated its contract with Oracle Health to include additional accountability measures and enhanced oversight at medical sites using the new EHR software.

Oracle officials previously told lawmakers they would absorb the cost of any contract overruns. Paul Lawrence from the U.S. Department of Veterans Affairs and Neil Evans from the U.S. Department of Veterans Affairs testified at the hearing, and officials from the VA and Oracle say they have resolved many of the problems that have affected the EHR modernization project.

The system has already been deployed across 11 sites under the accelerated market-based rollout, andCleveland and Alaska are scheduled to go live in October, according to testimony. Under the current plan, the VA will install the new EHR system at 13 medical facilities in 2026.

VA officials recently extended their Oracle contracts because the original price tag proved insufficient to complete the rollout. Some budget documents reference the ceiling reaching $48 billion. The VA's contract with Oracle for electronic health record modernization has grown from approximately $10 billion to roughly $27 billion, according to testimony.

The VA's contract with Oracle for electronic health record modernization has grown from approximately $10 billion to roughly $27 billion, according to testimony. Some budget documents reference the ceiling reaching $48 billion. VA officials recently extended their Oracle contracts because the original price tag proved insufficient to complete the rollout.

Under the current plan, the VA will install the new EHR system at 13 medical facilities in 2026. The system has already been deployed across 11 sites under the accelerated market-based rollout, andCleveland and Alaska are scheduled to go live in October, according to testimony.

Paul Lawrence from the U.S. Department of Veterans Affairs and Neil Evans from the U.S. Department of Veterans Affairs testified at the hearing, and officials from the VA and Oracle say they have resolved many of the problems that have affected the EHR modernization project. Oracle officials previously told lawmakers they would absorb the cost of any contract overruns.

The VA renegotiated its contract with Oracle Health to include additional accountability measures and enhanced oversight at medical sites using the new EHR software.

What They're Saying

He has also pushed to place responsibility on Oracle Health to address system challenges. VA Secretary Doug Collins has called the project a priority and worked to streamline coordination between VA and Oracle Health.

VA Deputy Secretary Lawrence, meanwhile, faced repeated questions about why costs had spiraled and whether taxpayers would ultimately bear the burden of project shortfalls.

"Past deployments were filled with cost overruns and patient safety issues," Bost said, framing the stakes for the committee's oversight. Committee Chair Mike Bost (R-IL) opened the hearing by stating he has been skeptical of the EHRM deployment from the very beginning.

Committee Chair Mike Bost (R-IL) opened the hearing by stating he has been skeptical of the EHRM deployment from the very beginning. "Past deployments were filled with cost overruns and patient safety issues," Bost said, framing the stakes for the committee's oversight.

VA Deputy Secretary Lawrence, meanwhile, faced repeated questions about why costs had spiraled and whether taxpayers would ultimately bear the burden of project shortfalls.

VA Secretary Doug Collins has called the project a priority and worked to streamline coordination between VA and Oracle Health. He has also pushed to place responsibility on Oracle Health to address system challenges.

The Bottom Line

Maggie Goodlander (D-NH), newly assigned to both the Health and Technology Modernization subcommittees, will also participate in ongoing oversight. Rep.

A motion to subpoena Larry Ellison and Michael Sicilia was adopted by a recorded vote of 19-0.

A motion to subpoena Larry Ellison and Michael Sicilia was adopted by a recorded vote of 19-0.

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