VA, Oracle Enter Next Phase of EHR Modernization

The U.S. Department of Veterans Affairs has announced the awarding of the second option period for its contract with Oracle Health in support of VA’s EHR modernization, with an emphasis on improved fiscal and performance accountability.

Through this agreement, VA and Oracle Health will continue to partner to deploy the Federal EHR as part of  the reset announced last year to fix several issues with the EHR deployment, including some patient safety-related problems. 


Last year, VA renegotiated the contract with Oracle Health from a five-year term to five one-year terms, allowing the annual review of progress and renegotiation with Oracle Health, as needed.

The 11-month option period is a continuation of VA’s focus on improving the Federal EHR for veterans while supporting the six VA facilities already using the Federal EHR. The EHR is currently in use at Spokane VA Health Care System, VA Walla Walla Health Care, Roseburg VA Health Care System, VA Southern Oregon Health Care, and VA Central Ohio Health Care System. It also is in use as the joint Department of Defense/VA EHR system at the Captain James A. Lovell Federal Health Care Center 

This contract will also support potential pre-deployment and deployment activities at new sites in fiscal year 2025 once VA determines that reset goals have been met.

On May 16, 2024 — the date the first Oracle Health contract option year was set to expire — VA announced a one-month extension to support negotiations to ensure long-term success of the program. The 11-month option awarded today completes the second option period award.

“This announcement is a testament to VA’s commitment to keeping the best interests of veterans, VA providers, and taxpayers at the forefront while maximizing resources in a fiscally restrained environment,” said VA Deputy Secretary Tanya Bradsher, in a statement. “Executing the second option year of the contract allows VA and Oracle Health to continue to drive forward on the goals of the reset and future deployments. VA remains committed to holding ourselves and our vendors accountable for resolving challenges with deployment of the Federal EHR and moving forward productively.”

Negotiations for the second option period are focused on two main objectives: 1) supporting value-added services, such as system improvements and optimizations, and 2) achieving better predictability in hosting, deployment, and sustainment — all while keeping an eye on fiscal responsibility. These objectives align with and facilitate VA’s reset efforts towards resuming site deployments in fiscal year 2025. VA will continue to evaluate and align future option periods with the best path forward for its Federal EHR modernization efforts.