From Reset to Rollout: Can the VA EHRM Program Finally Deliver?

House Subcommittee on Technology Modernization

2025-02-24

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Source: Congress.gov

Summary

The meeting addressed the status and future of the Department of Veterans Affairs' (VA) Electronic Health Record Modernization (EHRM) program, a critical initiative to replace its legacy health record system with a commercial solution from Oracle [ 00:15:32-00:15:32 ]

. Following a period of significant challenges and a comprehensive program reset, the VA announced its intention to resume deployments in mid-2026, beginning with four facilities in Michigan [ 00:16:07 ] [ 00:16:14 ] . Witnesses from the VA, Oracle, the Government Accountability Office (GAO), and the Office of the Inspector General (OIG) provided insights into the program's progress, persistent issues, and future outlook [ 00:20:59 ] [ 00:21:39 ] [ 00:22:00 ] [ 00:22:09 ] .

Themes

EHRM Program Status and Challenges

The VA's Electronic Health Record Modernization (EHRM) program has faced significant issues since its initial deployment in 2020, including system outages, patient harm, inefficient technology, budget overruns, and reduced patient volumes [ 00:15:32-00:16:00 ]

. These problems led to an indefinite pause in deployments in April 2023, granting the VA and Oracle time to rectify a long list of identified problems [ 00:16:07 ] . VA recently decided to restart deployments in mid-2026, targeting Ann Arbor, Battle Creek, Detroit, and Saginaw in Michigan [ 00:16:14-00:16:14 ] . Oracle asserts that the system has been dramatically improved since its initial deployment, citing over 3,000 functional changes and reliable performance, with user satisfaction reportedly trending in a positive direction . However, current surveys indicate that 69% of users remain dissatisfied with the system, and 75% believe it does not maximize their efficiency [ 00:17:28-00:17:33 ] .

Cost and Schedule Concerns

A significant concern is the absence of a current, reliable integrated master schedule and an up-to-date cost estimate for the EHRM program [ 00:17:52 ]

. The only independent cost estimate available, now three years old, projected the program's cost at over $32 billion, more than double the VA's original $16.1 billion estimate [ 00:18:00-00:18:12 ] . The GAO emphasizes that Congress cannot rely on these outdated figures due to substantial changes and delays within the program [ 00:41:41 ] [ 00:41:49 ] . With the program nearly seven years into a 10-year contract and implemented in less than 4% of medical centers, there is widespread skepticism regarding the feasibility of deploying to the remaining 160 sites by the contract's end in May 2028 [ 00:17:24 ] [ 01:30:32 ] . While VA acknowledges the need for both a revised master schedule and a life cycle cost estimate, the iterative development of these documents, starting with Michigan, raises questions about their timely completion .

Recommendations and Oversight

Both the OIG and GAO reported numerous outstanding recommendations for the VA, addressing critical areas such as patient safety, program management, and system accessibility . GAO noted that only one of its 18 recommendations has been fully implemented . Specific unresolved issues include difficulties with scheduling changes and missed appointments, as well as critical problems in pharmacy operations, which still necessitate manual safety checks and additional staffing at sites using the new EHR . Both oversight bodies advocate for an Independent Verification & Validation (IV&V) test, an IT best practice, to comprehensively assess the system's operational suitability and identify all deficiencies . While VA believes its internal reviews and user feedback sufficiently cover these concerns, GAO emphasizes the importance of an independent, end-to-end evaluation [ 00:45:10 ]

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Workforce Impact

Concerns were raised about the potential impact of recent VA workforce reductions on the EHRM program's progress . The VA's EHRM Integration Office experienced losses from probationary employee terminations and staff opting for deferred resignation programs [ 00:46:45 ]

. These reductions add to existing vacancies within the office, raising questions about the program's capacity to manage future deployments successfully [ 00:47:07 ] [ 00:47:19-00:47:45 ] . VA acknowledged that the successful implementation of EHRM relies not solely on the program office staff but also on extensive collaboration with the Veterans Health Administration, the Office of Information Technology, and various vendor partners .

Future Prospects and AI

Oracle outlined plans to migrate the VA system to its cloud infrastructure, aiming for improved performance, access to next-generation technologies, and enhanced cybersecurity . This migration is intended to facilitate the integration of advanced AI capabilities into the EHR . Examples include clinical AI agents that can generate notes from patient-doctor interactions and assist providers with patient summaries, identifying care gaps, and suggesting research candidates . Oracle committed to providing a new cloud-based EHR infused with AI to the VA at no additional cost . A core principle for AI integration is maintaining a "human in the loop," ensuring providers retain control over clinical decisions and that patient consent is obtained when AI is used in their care [ 01:35:53-01:36:05 ]

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Tone of the Meeting

The tone of the meeting was largely serious and concerned, reflecting deep skepticism and frustration regarding the EHRM program's past performance [ 00:16:00-00:16:07 ]

. Congressional members and oversight bodies consistently pressed for accountability, detailed plans, and transparent communication on costs and schedules [ 00:17:04-00:18:15 ] . While VA and Oracle representatives maintained an optimistic outlook, highlighting improvements and future potential, their assurances were often met with pointed questions about concrete evidence and statistical probabilities of success . The urgency for "getting it right" rather than "fast" for the sake of veterans' healthcare and VA staff morale was a recurring theme, particularly in the closing remarks .

Participants

Transcript

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Good afternoon.  The first technology and modernization subcommittee hearing of the 119th Congress will come to order.  I want to thank the witnesses for being here today to discuss the electronic health record modernization program at the VA.  Appreciate your willingness to participate and help in this conversation.   Before we get to the business of today's hearing, I want to first congratulate and welcome my fellow Midwesterner, Representative Nikki Budzinski from Illinois, on becoming the ranking member of this subcommittee.  We had a great meeting in my office a few weeks ago and participated in a roundtable earlier already and really appreciate your partnership in this effort.  Your position as ranking member is a testament to your hard work for veterans and the goodwill you have built with your colleagues on both sides of the aisle and look forward to continuing to build that relationship together.   Our work on this committee will not always be easy, but our mission is critical.  And that's why I'm deeply honored to chair this subcommittee and lead the House's oversight over VA's IT systems, infrastructure, and modernization projects.  By way of background, I served 22 years in the United States Army before retiring and becoming one of the thousands of veterans in Michigan that received their health care and benefits from the VA.   I personally go to the VA Battle Creek VA Medical Center.  I use the Montgomery GI Bill to pay for my college.  And I understand what veterans in Michigan and across the country need and expect from the VA.  I'm going to use my leadership position here to make sure that VA's IT systems are working for all veterans and employees of the VA and ultimately making the VA a more effective and efficient organization.   Whether you're making primary care appointments, filling a disability claim, applying for education benefits, none of that happens successfully without good, reliable, and secure IT systems.  Perhaps the largest undertaking on this committee will be oversight of the VA's electronic health record and the efforts that are going into that today.
It's the backbone of VA's healthcare operations.   The Electronic Health Record Modernization Program is VA's project to replace its homegrown electronic health record system with a commercial off-the-shelf EHR from Oracle.  This subcommittee has spent hundreds of hours over the last several years conducting oversight over this program and exposing and reviewing and analyzing its issues and its problems.  While I'm new to this conversation, I spent considerable time looking into this issue   I understand how important it is for us to get this right.  These consistent problems include system outages, patient harm, poorly functioning technology, budget overruns, reduced patient volumes, and more.  Because of these problems, former Secretary McDonough put the program in an indefinite pause in April of 2023 to give VA and Oracle time to fix a long list of problems with the system.   The Secretary decided right before Christmas that VA was going to start the program up again in the spring of 2026 at Ann Arbor, Battle Creek, Detroit, and Saginaw in my home state of Michigan.  Two years ago, VA told this committee they had a lot of homework to do before they put this system into another medical center.  Now, VA is getting ready to turn in their homework.   I appreciate the opportunity to meet with both Oracle and VA several times before this hearing to discuss the problems that have plagued this system for years.  While I'm not convinced that they have fixed all of the problems, I want to hear today from VA and Oracle directly to this subcommittee that progress has come out of the last two years.   As the new chairman of this subcommittee, I'm going to examine the facts, consult my colleagues on this subcommittee, and make my own judgments based on what progress has been made.  Here are some of the facts as they stand today.  First, VA is nearly seven years into the original 10-year contract, and the Oracle EHR has been implemented in less than 4% of medical centers.