The Department of Veterans Affairs (VA) and Oracle Cerner have agreed to extend the contract for the Electronic Health Records Modernization (EHRM) program by one month while they continue negotiations. The VA renegotiated a stricter contract with Oracle Cerner in May 2023 to hold them accountable for technical fixes to the program. The new contract has been upgraded to five one-year terms to allow for renegotiation each year if needed. The previous contract expired on May 16, but the extension gives the parties until June 16 to finalize the new contract.
VA press secretary Terrence Hayes stated that the negotiations have focused on additional considerations to support the long-term success of the program for veterans and physicians. The agency is committed to holding Oracle Health accountable and working towards a streamlined contract that benefits veterans, VA providers, and taxpayers. Despite some improvements made to the EHR system, a group of Democratic senators have urged the VA to push for stronger accountability provisions in the ongoing contract negotiations.
The senators highlighted challenges in the EHRM program, such as incomplete software deliveries and code errors in pharmacy-focused updates. They have requested a summary of the new provisions and terms of application once the negotiations are completed, as well as an overview of how last year’s contract was utilized to achieve better results. The EHRM program is currently in a reset period, pausing all future deployments while technical improvements are being made to the system by the VA and Oracle Cerner.
VA Secretary Denis McDonough informed lawmakers that the agency does not intend to remain in reset mode for the entire fiscal year 2025. He emphasized the need to exit the reset phase and begin deployment soon. Discussions are expected to take place as the year progresses to transition out of the reset period.
In conclusion, the VA and Oracle Cerner have extended their contract for the EHRM program as they continue negotiations to address challenges and improve the system for veterans and healthcare providers. The parties are working towards a streamlined contract that ensures accountability and success in the long term. Lawmakers have raised concerns about the program’s ongoing issues and are pushing for stronger provisions in the new contract. The VA is aiming to exit the reset phase and resume deployments as discussions progress throughout the year.
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