Senators push VA to renegotiate Oracle contract

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Three members of the Senate Veterans' Affairs Committee are calling on the Department of Veterans Affairs to push for stronger accountability provisions in its ongoing contract negotiations with Oracle Health on the Electronic Health Record Modernization (EHRM) program.

The current contract is slated to expire on May 16.

"We are writing to urge the Department of Veterans Affairs (VA) to act to protect taxpayers and veterans through stronger accountability provisions," the Committee members wrote in a letter to VA Deputy Secretary Tanya Bradsher. "Last year, we pressed the Department to overhaul its EHRM contract with Oracle Health to provide VA more tools to hold the contractor accountable when the company did not deliver at expected levels … [and we] were heartened by the Department's May 2023 announcement of a revised contract with Oracle Health."

The committee members include Senators Sherrod Brown (D-Ohio), Jon Tester (D-Mont.) and Patty Murray (D-Wash.).

WHAT'S THE IMPACT?

According to the lawmakers, the VA's previous contract from May 2018 had very few mechanisms to hold Oracle Health accountable for numerous performance failures. Those failures, they said included "system crashes, poorly tested software solutions that led to patient safety incidents, and insufficient training programs."

The senators claim the VA's oversight has "lacked sufficient accountability" over the years, which has compounded these systemic problems.

VA's renegotiated contract from May 2023 included stronger accountability provisions after a sustained push from lawmakers, according to the letter. This included setting higher standards for system reliability and contractor responsiveness, as well as larger penalties when Oracle Health doesn't meet the expected standards.

The contract also changed from a five-year term to five one-year terms, giving VA the opportunity to review Oracle Health's progress every 12 months and renegotiate terms as appropriate to ensure they're delivering.

"While there have been some improvements to Oracle Health's performance in the last 12 months, significant challenges remain," the senators wrote. "After years of veterans not receiving the care they deserve and VA staff not getting the system they need, the department must take all steps possible to ensure VA is getting the services it purchased at a fair price and that Oracle Health is living up to its commitments. We encourage you to use the opportunity the new contract structure provides to re-review terms and add additional accountability and oversight provisions to protect veterans and taxpayers."

THE LARGER TREND

Last year, Brown, Tester and Murray spearheaded the EHR RESET Act to deliver a complete overhaul of the EHRM program. 

Their legislation includes provisions to restructure and strengthen the EHRM program, while also mandating aggressive reporting to Congress to increase oversight, accountability and transparency following a series of challenges with the system and program. 

Bipartisan companion EHR RESET Act legislation has also been introduced in the U.S. House of Representatives.
 

Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.