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Senators pressure 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 pushing for stronger accountability provisions in its ongoing contract negotiations with Oracle Health on the Electronic Health Records Modernization (EHRM) program.
The current contract is set 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,” Committee members wrote in a statement. Letter to VA Deputy Secretary Tanya Bradsher. “Last year, we lobbied the Department to revise its EHRM contract with Oracle Health to provide VA with more tools to hold the contractor accountable when the company does not deliver at expected levels… [and we] We are encouraged by the Department’s May 2023 announcement of a revised contract with Oracle Health.”
Committee members include Senators Sherrod Brown (D-Ohio), Jon Tester (D-Mont.) and Patty Murray (D-Wash.).
WHAT IS THE IMPACT?
According to lawmakers, the VA’s previous contract from May 2018 had few mechanisms to hold Oracle Health accountable for numerous performance failures. These failures, they said, included “system failures, poorly tested software solutions that led to patient safety incidents, and insufficient training programs.”
The senators say VA oversight has “lacked sufficient accountability” over the years, which has worsened these systemic problems.
The VA’s renegotiated May 2023 contract included stronger accountability provisions after a sustained effort by lawmakers, according to the letter. This included setting higher standards for system reliability and contractor responsiveness, as well as greater penalties when Oracle Health did not meet 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 are in compliance.
“While there have been some improvements in Oracle Health’s performance over the past 12 months, significant challenges remain,” the senators wrote. “After years of veterans not receiving the care they deserve and VA employees not receiving the system they need, the department must take every step possible to ensure VA receives the services it purchased at a fair price and that Oracle Health lives up to its commitments. We encourage you to take advantage of the opportunity the new contract structure provides to reevaluate the terms and add additional accountability and oversight provisions to protect veterans and taxpayers.
THE BIGGEST TREND
Last year, Brown, Tester and Murray led the EHR RESET Act to deliver a complete review of the EHRM program.
His legislation includes provisions to restructure and strengthen the EHRM program, while also requiring aggressive reporting to Congress to increase oversight, accountability, and transparency in the wake of a series of challenges with the system and program.
Bipartisan 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 Publication in the media.