Last week, VA awarded the third option period for its contract with Oracle Health to support its Federal Electronic Health Record (EHR) modernization, building on the improved fiscal and performance accountability established in previous option periods.

In line with the Trump administration’s vision for improved efficiency, accountability and innovation across government, this award supports Secretary Doug Collin’s efforts to get VA’s EHR modernization back on track and accelerate Federal EHR deployments across the enterprise.

Back in 2023, VA took the important step of renegotiating the contract with Oracle Health from a 5-year term to five 1-year terms, allowing for an annual review of Federal EHR modernization progress and renegotiation with Oracle Health, as needed. This approach has substantially increased shared accountability across a variety of key areas, including minimizing outages and incidents, resolving clinician requests, improving interoperability with other health care systems, and increasing interoperability with other applications to ensure an integrated health care experience.

Negotiations for the third option period focused on further cost efficiencies and optimizations to deliver the Federal EHR.

“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. 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,” said VA Deputy Secretary Paul R. Lawrence, Ph.D.

VA will continue to evaluate and align future option periods with the best path forward for its modernization efforts.

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One Comment

  1. Daniel Dlugose May 29, 2025 at 07:52 - Reply

    When I worked in medical information systems as a Nurse Informaticist I noticed that “cost efficiencies” sometimes lead to LESS efficient systems. The hospital I was working at had an inexpensive system that needed custom modifications just about every month. When I worked for another organization they would take months to plan a way to merge information systems when hospitals wanted to merge with another hospital or clinic. It worked so well that when we turned a new system on, during the starting night shift we found all the bugs, and had them fixed within a couple days.

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