Denis R. McDonough Secretary of Veterans Affairs | Oficial Website
The U.S. Department of Veterans Affairs (VA) announced the award of the second option period for its contract with Oracle Health to support the Federal Electronic Health Record (EHR) modernization, focusing on improved fiscal and performance accountability.
Through this agreement, VA and Oracle Health will continue to deploy the Federal EHR as part of a reset announced last year. The 11-month option period aims to improve the Federal EHR for veterans while supporting six VA healthcare facilities currently using it. This contract will also support potential pre-deployment and deployment activities at new sites in fiscal year 2025, contingent on meeting reset goals.
On May 16, 2024, when the first Oracle Health contract option year was set to expire, VA announced a one-month extension to support negotiations ensuring long-term success for veterans and VA providers. The 11-month option awarded on June 13, 2024, completes the second option period award.
“This announcement is a testament to VA’s commitment to keeping the best interests of Veterans, VA providers, and taxpayers at the forefront while maximizing resources in a fiscally restrained environment,” said VA Deputy Secretary Tanya Bradsher. “Executing the second option period of the contract allows VA and Oracle Health to continue to drive forward on the goals of the reset and future deployments. VA remains committed to holding ourselves and our vendors accountable for resolving challenges with deployment of the Federal EHR and moving forward productively.”
Negotiations for this period focus on two main objectives: supporting value-added services like system improvements and optimizations, and achieving better predictability in hosting, deployment, and sustainment — all while maintaining fiscal responsibility. These objectives align with VA’s efforts towards resuming site deployments in fiscal year 2025. Future option periods will be evaluated and aligned with the best path forward for Federal EHR modernization.
Last year, VA renegotiated its contract with Oracle Health from a five-year term to five one-year terms. This change allows an annual review of Federal EHR progress and renegotiation as needed, increasing accountability across key areas such as minimizing outages, resolving clinician requests, improving interoperability with other healthcare systems, and integrating applications for a cohesive healthcare experience. The Federal EHR will eventually replace VA’s current Veterans Health Information Systems and Technology Architecture (VistA), streamlining access across all VA healthcare facilities.
For more information about VA’s overall EHR modernization effort, visit https://www.ehrm.va.gov.
