Contract Intelligence
VA EHRM (Electronic Health Record Modernization)
VA's enterprise EHR modernization replacing VistA. Only 6 of 164 VA medical centers live as of March 2026 — 158 remain on legacy VistA. April 2026: 4 Michigan sites go live (Detroit, Saginaw, Ann Arbor, Battle Creek), followed by 9 more in Ohio, Indiana, Kentucky, and Alaska. Performance record is the primary driver of Congressional pressure: VA IG documented 826 major performance incidents since first go-live, GAO found only 13% of staff believe the system makes VA more efficient, and 58% believe it increased patient safety risks. FY2026: $3.4B allocated but 30% ($1.02B) withheld until July 1, 2026 pending VA conditions. Oracle exercised 3rd option period in 2025. Rep. Budzinski's 33-page discussion draft (March 2026) proposes a 2-year clock: if VA can't certify improvement and complete 2 new deployments, Oracle contract extensions would be restricted. Oracle facing reported 20-30% layoffs that could further strain EHRM staffing.
Agency
Department of Veterans Affairs
Vendor
Oracle Health (Cerner)
Value
$37.2B lifecycle estimate
Status
ActiveConfidence
--Current Intelligence
Contract Overview
VA's enterprise EHR modernization replacing VistA. Only 6 of 164 VA medical centers live as of March 2026 — 158 remain on legacy VistA. April 2026: 4 Michigan sites go live (Detroit, Saginaw, Ann Arbor, Battle Creek), followed by 9 more in Ohio, Indiana, Kentucky, and Alaska. Performance record is the primary driver of Congressional pressure: VA IG documented 826 major performance incidents since first go-live, GAO found only 13% of staff believe the system makes VA more efficient, and 58% believe it increased patient safety risks. FY2026: $3.4B allocated but 30% ($1.02B) withheld until July 1, 2026 pending VA conditions. Oracle exercised 3rd option period in 2025. Rep. Budzinski's 33-page discussion draft (March 2026) proposes a 2-year clock: if VA can't certify improvement and complete 2 new deployments, Oracle contract extensions would be restricted. Oracle facing reported 20-30% layoffs that could further strain EHRM staffing.
Search SAM.gov
Find active solicitations, awards, and entity information related to this contract on SAM.gov.
Search SAM.gov for VA EHRM (Electronic Health Record Modernization) →Last built: 2026-03-31
Get Contract Intelligence in Your Inbox
Stay ahead of federal health IT procurement moves. Subscribe for twice-twice-weekly analysis.