VA-Oracle Health EHR Contract Ceiling Jumps to $26.9B
The U.S. Department of Veterans Affairs has raised the ceiling on its Oracle Health electronic health record contract to $26.9 billion, according to an award notice published Aug. 19 on SAM.gov and reported by Becker's Hospital Review. The VA awarded the $16.9 billion modification on Aug. 18, stacking it on top of the deal's original $9.99 billion ceiling.
The expanded ceiling caps a program that has been one of the most scrutinized federal IT efforts in years. The VA originally signed with Cerner, now part of Oracle, in 2018 to replace its homegrown VistA system. The rollout was paused in 2023 after patient safety concerns and outages at early sites before the agency moved to restart and broaden deployments.
A higher ceiling is not new spending by itself, but it signals the VA expects to pay far more as it pushes the system across its hospital network. For Oracle, it locks in one of the largest health IT commitments in government, with billions still riding on whether the restarted deployments go smoothly.
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