The Department of Veterans Affairs (VA) has extended its contract with Oracle Cerner for the Electronic Health Records Modernization (EHRM) program by one month as negotiations for a new contract continue. The VA renegotiated a stricter contract with Oracle Cerner in May 2023 to address technical issues that have plagued the program. The renegotiated contract now consists of five one-year terms, allowing for more flexibility in renegotiating each year if needed. The previous contract expired on May 16, but the extension gives the parties until June 16 to finalize the new agreement.
VA press secretary Terrence Hayes stated that the negotiations have focused on additional considerations to ensure the long-term success of the program for veterans and physicians. The VA remains committed to holding Oracle Health accountable and resolving any challenges with the implementation of the Federal Electronic Health Record (EHR) system. While there have been improvements to the EHR system, a group of Democratic senators recently called for stronger accountability provisions in the ongoing contract negotiations due to remaining challenges.
The EHRM program is currently in a reset period, pausing all future deployments while technical improvements are made by the VA and Oracle Cerner. VA Secretary Denis McDonough informed lawmakers that the agency does not plan to remain in reset mode for the entire fiscal year 2025 and hopes to exit the reset phase as discussions progress throughout the year.
Overall, the VA’s contract extension with Oracle Cerner highlights the agency’s dedication to improving the Electronic Health Records Modernization program for the benefit of veterans and healthcare providers. The renegotiated contract terms aim to hold Oracle Cerner accountable for technical fixes and streamline the process for better results in the future. The ongoing negotiations and commitment to addressing challenges demonstrate the VA’s determination to ensure the success of the EHRM program.
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