Why it Matters
The Department of Veterans Affairs (VA) is expanding its electronic health record (EHR) system across its hospitals, but concerns about patient safety, rising costs and congressional oversight are casting doubt on the program's future. VA deployed the system at hospitals in Cleveland and Anchorage on Oct. 24, completing its planned rollouts for the year, even as an association representing VA physicians and dentists urged Congress to halt further deployments until the system undergoes an independent safety review.
The Senate Veterans' Affairs Committee will hold a Nov. 18 hearing titled "VA Accountability and Transparency: Examining the Current and Future Path of VA's Electronic Health Record Modernization Program." The committee is chaired by Sen. Jerry Moran (R-KS), with Sen. Richard Blumenthal (D-CT) serving as ranking member.
Broader Context
The National Association of VA Physicians and Dentists has called on Congress to pause further deployments of Oracle Health's EHR system, citing concerns about patient safety, system reliability and the program's growing costs.
Government Executive reported that the association wants lawmakers to require an independent patient-safety assessment at existing sites, correction of critical deficiencies and documented readiness before additional hospitals adopt the system. The association has reported problems involving delayed referrals, disrupted clinical workflows and difficulty accessing patient information. These are concerns raised by the physicians' group, rather than independently established findings of patient harm. The system is now in use at 19 VA medical centers.
The program's cost has also drawn bipartisan scrutiny. Nextgov/FCW reported that VA extended its contract with Oracle, increasing its ceiling by approximately $17 billion and adding three one-year options. The modification raised the contract's overall ceiling from approximately $10 billion to $27 billion, although the higher ceiling does not mean the full amount has been spent or committed.
The contract change surprised lawmakers from both parties, who have questioned why the project requires substantially more funding after years of delays and technical problems. The House Veterans' Affairs Committee voted 19-0 on Sept. 2 to subpoena Oracle Executive Chairman Larry Ellison and CEO Mike Sicilia over the project's cost and status.
Blumenthal and Rep. Mark Takano (D-CA) also demanded answers from VA Secretary Doug Collins in an Oct. 13 press release, raising concerns about the contract's escalating costs and the department's failure to provide requested documents. Their correspondence questioned the justification for the increase and sought additional information about the project's finances, patient safety and implementation.
Despite the criticism, VA has continued expanding the system. In its announcement, the department said the Oct. 24 deployments in Cleveland and Anchorage completed its goal of bringing the system to 13 additional hospitals this year.
VA officials have also outlined plans to deploy the system at 26 more medical centers in 2027, beginning with facilities in Wisconsin and Michigan in January. The department maintains that software improvements and a better deployment process have positioned the program for broader implementation, while the physicians' association continues to argue that independent safety reviews should come first.
The Bottom Line
The Nov. 18 hearing will give senators an opportunity to examine whether VA's accelerated EHR rollout is moving forward safely and whether the department and Oracle have adequately justified the program's rising costs.
With 26 additional medical-center deployments planned for 2027, the committee faces pressure to address the physicians' association's request for a pause, the $17 billion contract ceiling increase and the House committee's bipartisan subpoenas of Oracle executives.
Any legislative restrictions on future deployments or additional oversight measures would require action beyond the hearing. For now, the central question is whether VA can demonstrate that its new system is ready for further expansion without putting veterans' care at risk.
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