VA’s EHR Modernization Faces Turbulence Amid Contract Cancellations and Deployment Acceleration

What You Should Know: 

– The Department of Veterans Affairs (VA) is navigating a complex landscape as it seeks to accelerate the rollout of its new Electronic Health Record (EHR) system from Oracle Cerner, while simultaneously cutting ties with numerous support contractors, Federal News Network first reports. 

– The VA’s recent mass cancellation of contracts, including those with at least six service-disabled, veteran-owned small businesses supporting the EHR modernization, has raised alarm. These contracts, terminated “for convenience,” have led to layoffs and a potential “domino effect” on the EHR rollout, according to sources familiar with the situation.

– A source told Federal News Network that the VA’s decisions reveal a disconnect between VA leadership, advisors from the Department of Government Efficiency (DOGE), and congressional lawmakers overseeing the VA. Lawmakers are now demanding justification for these cuts, particularly as they impact the critical EHR modernization project.

Concerns Over Deployment Acceleration:

Despite the contract cancellations, VA Secretary Doug Collins has expressed a desire to accelerate the EHR deployment timeline. The VA aims to launch the new EHR at four sites in Michigan by mid-2026 and has added nine more sites for 2026 deployments, with the goal of completing all deployments by 2031.

However, a congressional staffer questioned the logic of accelerating deployment while simultaneously reducing the workforce and contracts necessary to support it. “It doesn’t make sense to accelerate deployment and then cut the people and the contracts that will help you with that acceleration. So to me, that’s a math problem that doesn’t add up,” the staffer stated.

Significant Challenges and Patient Safety Concerns:

The EHR rollout has faced numerous challenges since its initial launch in Spokane, Washington, in 2020. The VA’s inspector general reported 826 “major performance incidents,” including outages, performance degradations, and incomplete functionality, with some incidents linked to patient harm and even deaths.

The canceled contracts include those crucial for ensuring interoperability between the VA and the Department of Defense, as well as with the VA’s legacy EHR system, VistA, and private healthcare systems. A contractor who requested anonymity told Federal News Network that their work was “foundational” to the VA’s EHR goals.

Congressional Scrutiny and VA Response

The timing of the contract cancellations, occurring shortly after a congressional hearing on the EHR project, has raised suspicion. Lawmakers are demanding answers from the VA and DOGE, seeking to understand the rationale behind these cuts and their potential impact on veteran care and safety.

The VA maintains that the contract terminations will not negatively impact veteran care, but the situation has created significant uncertainty and concern among contractors, lawmakers, and healthcare professionals. As the VA moves forward with its accelerated deployment plans, it faces the challenge of addressing these concerns and ensuring the successful implementation of its new EHR system.