Despite reported layoffs at Oracle Cerner due to challenges in implementing the $10 billion VA EHR modernization project, a senior VA official expresses confidence in the vendor’s ability to deliver. The official emphasizes that VA leadership remains committed to the program’s success and expects Oracle Cerner to provide the necessary talent and expertise. The EHR system has faced problems, leading to cases of harm and veteran deaths. The VA recently renegotiated the contract with Oracle Cerner to include stronger performance metrics and penalties.
Despite recent layoffs at Oracle Cerner reportedly caused by challenges encountered during the $10 billion VA EHR modernization (EHRM) project, a senior official from the Department of Veterans Affairs (VA) expresses confidence in the vendor’s ability to deliver on the EHR modernization program, as reported by Nextgov.
Last week, Oracle laid off numerous employees and withdrew job offers within its Cerner healthcare unit. These layoffs are believed to be partly linked to the difficulties the vendor has faced in implementing the VA’s EHR system.
In a June 20 email obtained by Nextgov/FCW, a Cerner physician-executive revealed that “the entire clinical team from Oracle Cerner was eliminated,” including experienced individuals in leadership, technology, population health management, data analytics, and EHR implementation.
However, Neil Evans, MD, acting program executive director of the VA EHRM Integration Office, conveyed through an emailed statement to Nextgov/FCW that VA leadership maintains confidence in the vendor’s progress with the implementation.
“VA leadership remains fully committed to the success of the department’s EHR modernization program,” Evans wrote.
“VA expects any contractor to provide the appropriate levels of talent and expertise to fulfill their contractual commitments, and our expectations for Oracle Cerner are no different,” he added. “VA will continue to collaborate with Oracle Cerner to ensure the system is fully operational and that user support and system optimization efforts proceed without hindrance.”
Since its initial launch at Spokane’s Mann-Grandstaff VA Medical Center in October 2020, the EHR system has encountered a series of problems. VA officials have acknowledged that system deficiencies contributed to over 150 cases of harm and the deaths of four veterans.
In May 2023, the VA renegotiated its $10 billion EHR contract with Oracle Cerner to incorporate more robust performance metrics and increased financial penalties.
“VA has reached an agreement on a modified contract with Oracle Cerner to deliver the high-functioning, high-reliability, world-class electronic health record that Veterans deserve,” stated the department in a press release during the announcement.
