The Department of Veterans Affairs has extended its contract with Oracle Health by 11 months as part of its ongoing EHR modernization project.
In May, the VA extended the contract with Oracle Health by one month to allow time for negotiations. The 11-month extension marks the completion of the second option period, according to a June 13 news release from the department.
Six VA healthcare facilities use the Oracle EHR. The new contract will support preparations to expand the system to additional sites in fiscal year 2025, provided the EHR meets its reset goals.
According to the VA, negotiations for this contract period are focused on enhancing system performance and ensuring predictable hosting and deployment, all while maintaining fiscal responsibility. Additionally, the department said it will continue to review and adjust future contract periods to best support its EHR modernization efforts.
The VA signed its $16 billion EHR modernization contract with Cerner, now known as Oracle Health, in 2017. The Oracle Health EHR rollout to VA facilities began in 2020 but was paused in April 2023 as the department looked to renegotiate its contract with Oracle.