Veterans Affairs Health Software by Oracle Fails to Meet Expectations in $16 Billion Investment

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The U.S. Department of Veterans Affairs is facing challenges with Oracle software, which is supposed to help improve patient care. According to Bloomberg News, an internal survey revealed that fewer than 1 in 5 VA healthcare staff believe that Oracle’s product enables them to provide “high-quality care.” The VA, Oracle’s largest public customer in the health unit, has been renegotiating its $16 billion contract due to poor system performance and negative employee feedback.

The acquisition of Cerner, an electronic health records provider, by Oracle has also contributed to the issues. The contract involved replacing the EHR system at all 172 VA facilities, but the implementation has been controversial. Outages and patient deaths at hospitals where the new software was installed led to the government halting the process.

A survey conducted by consulting services provider KLAS revealed that only 30% of software users at U.S. Department of Defense medical centers, who have been using the Cerner system for years, believe it allows for “high-quality care.” Less than half of healthcare staff at average U.S. facilities using Oracle’s EHR software appreciated the system.

KLAS recommended specific training for physicians on the new software and establishing a communication plan. About 22% of VA respondents found their training on the software helpful, while about 45% received information about the migration to the new EHR.

In a blog post by Ken Glueck, Oracle’s executive vice president, he stated that the company has made thousands of improvements to enhance system performance, reliability, and usability since taking on the VA contract. Glueck emphasized that the technology being used at the VA is the same as the one used across all 3,890 Department of Defense locations for reliable and quality care delivery.

The VA’s internal survey, conducted in March and April, is part of a continuous review of Oracle’s performance that has been ongoing for more than a year with a consultant. The survey results were prepared for department leaders and members of Congress who have criticized the contract. The VA is working to address the issues with Oracle software to ensure better patient care in the future.

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