VA Awards Third Option Period to Oracle Health for EHR Modernization Project

What You Should Know: 

– The U.S. Department of Veterans Affairs (VA) announced last week it has awarded the third option period for its contract with Oracle Health to continue supporting its Federal Electronic Health Record (EHR) modernization initiative, VA News first reports. 

– The award supports VA Secretary Doug Collin’s ongoing efforts to steer the EHR modernization project back on track and accelerate deployments across the enterprise. This initiative is also in line with the Trump administration’s vision for improved efficiency, accountability, and innovation throughout government services.

Driving Accountability Through Restructured Contract

A significant shift in the VA’s approach to the EHR modernization occurred in 2023 when the department renegotiated its contract with Oracle Health. The original 5-year term was changed to five 1-year terms, a move designed to allow for annual reviews of progress and renegotiation with Oracle Health as needed.

This revised structure has substantially increased shared accountability across several key areas. These include minimizing system outages and incidents, promptly resolving clinician requests, improving interoperability with other healthcare systems, and increasing interoperability with other applications to ensure an integrated healthcare experience for veterans.

Third Option Period Focuses on Cost Efficiencies and Accelerated Deployment

Negotiations for this third option period centered on achieving further cost efficiencies and optimizing the delivery of the Federal EHR. The VA aims to expedite the rollout of the new system to more sites to improve care delivery for the nation’s veterans.

“VA is moving faster to get the Federal EHR to more sites to improve care delivery for Veterans. We are working closely with our vendor, Oracle Health, to make that happen,” said VA Deputy Secretary Paul R. Lawrence, Ph.D.. “This option award ensures both the ongoing technical and implementation support VA needs to accelerate deployments and VA’s ability to hold Oracle Health accountable to resolve any challenges”.