VA triples Oracle health record contract ceiling to $27 billion, total cost estimated at $48 billion
The Department of Veterans Affairs nearly tripled the ceiling on its Oracle electronic health record modernization contract from roughly $10 billion to approximately $27 billion. During a September 3, 2026 House hearing, VA Deputy Secretary Paul Lawrence could not explain the $17 billion increase or how Oracle’s CEO’s 2022 promise to bear cost overruns was reflected. Total deployment through 2031 is estimated at $37 billion plus $11 billion for sustainment, totaling roughly $48 billion.
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VA electronic health record modernization cost balloons from $10 billion to $48 billion
The Department of Veterans Affairs has nearly tripled the ceiling on its contract with Oracle to modernize the agency's electronic health record system, raising the maximum potential value from roughly $10 billion to approximately $27 billion. During a House Veterans' Affairs Committee hearing on September 3, 2026, lawmakers pressed for explanations but received unclear answers about why the increase is necessary or how much taxpayers will ultimately pay. VA Deputy Secretary Paul Lawrence testified that the department estimates completing deployment through 2031 will cost about $37 billion, plus approximately $11 billion for sustainment, totaling roughly $48 billion. Lawrence said VA had hit the original ceiling as planned but could not explain why Oracle's proposal reached roughly a $17 billion increase, how much VA negotiated from the company's request, or what specifically drove the additional cost. The expanded contract encompasses software, licensing, hosting, managed services, training, testing, data migration, change management, and deployment support. Lawmakers cited a 2022 statement from Oracle Health CEO Mike Sicilia that the company was prepared to bear cost overruns, but Lawrence could not explain how that commitment was reflected in current negotiations.
VA triples Oracle health record contract ceiling to $27B, total cost estimated at $48B
The Department of Veterans Affairs has nearly tripled the ceiling on its contract with Oracle to modernize the agency's electronic health record system, raising the maximum potential value from roughly $10 billion to approximately $27 billion. During a House Veterans' Affairs Committee hearing on September 3, 2026, lawmakers pressed for explanations about the $17 billion increase but received incomplete answers. VA Deputy Secretary Paul Lawrence testified that the department estimates completing deployment through 2031 will cost about $37 billion, plus approximately $11 billion for sustainment, totaling roughly $48 billion. Lawrence stated he was not involved in negotiations with Oracle and could not explain why Oracle's proposal reached the $17 billion increase, how much VA negotiated down, or what specifically drove the additional costs. The original 2018 contract with Cerner (acquired by Oracle in 2022) was intended to replace VA's aging Vista system and create a common electronic health record with the Defense Department. The expanded contract covers software, licensing, hosting, managed services, training, testing, data migration, change management, and deployment support. Lawmakers cited a 2022 statement from Oracle Health's CEO that the company was prepared to bear cost overruns, but Lawrence could not explain how that commitment was reflected in current negotiations.
VA triples Oracle health record contract ceiling to $27B, total cost estimated at $48B
The Department of Veterans Affairs has nearly tripled the ceiling on its contract with Oracle to modernize the agency's electronic health record system, raising the maximum potential value from roughly $10 billion to approximately $27 billion. During a House Veterans' Affairs Committee hearing on September 3, 2026, lawmakers pressed for explanations but received few clear answers. VA Deputy Secretary Paul Lawrence testified that the department estimates the total cost of completing deployment through 2031 at about $37 billion, plus approximately $11 billion for sustainment, bringing the overall projected cost to roughly $48 billion. Lawrence acknowledged he was not involved in the contract negotiations and could not explain why Oracle's proposal reached a $17 billion increase, how much VA negotiated down, or what specifically drove the additional costs. The original contract was signed with Cerner in 2018 before Oracle acquired Cerner in 2022. Lawmakers cited a 2022 statement from Oracle Health's CEO promising to bear cost overruns, but Lawrence could not explain how that commitment was reflected in the current contract. The expanded contract covers software, licensing, hosting, managed services, training, testing, data migration, change management, and deployment support.
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VA triples Oracle health record contract ceiling to $27 billion, total cost estimated at $48 billion
The Department of Veterans Affairs has nearly tripled the ceiling on its contract with Oracle to modernize the agency's electronic health record system, raising the maximum potential value from roughly $10 billion to approximately $27 billion. During a House Veterans' Affairs Committee hearing on September 3, 2026, lawmakers pressed VA Deputy Secretary Paul Lawrence for explanations about the $17 billion increase, but received few clear answers. Lawrence acknowledged he was not involved in the negotiations and could not explain why Oracle's proposal reached that level or what specific factors drove the additional costs. The original 2018 contract with Cerner (acquired by Oracle in 2022) was intended to replace the aging Vista system and create a common record with the Defense Department. Lawrence stated the $27 billion figure is a contract ceiling, not a payment, and that the contract operates on a time-and-materials basis. VA estimates the total modernization effort will cost approximately $37 billion for deployment through 2031 plus $11 billion for sustainment, totaling roughly $48 billion. Lawmakers cited a 2022 statement from Oracle Health's CEO promising to bear cost overruns, but Lawrence could not explain how that commitment was reflected in current negotiations.
VA electronic health record modernization cost balloons from $10 billion to $48 billion
The Department of Veterans Affairs has nearly tripled the ceiling on its contract with Oracle to modernize the agency's electronic health record system, increasing it from roughly $10 billion to approximately $27 billion. During a House Veterans' Affairs Committee hearing on Wednesday, lawmakers pressed for explanations but received few clear answers. VA Deputy Secretary Paul Lawrence acknowledged he was not involved in the negotiations and could not explain why Oracle's proposal reached roughly $17 billion more, how much VA negotiated down, or what specifically drove the additional costs. The original contract was signed with Cerner in 2018 to replace the aging Vista system and create a common record with the Defense Department; Oracle acquired Cerner in 2022. Lawrence emphasized the $27 billion figure is a contract ceiling, not a payment, and operates on a time-and-materials basis. The department estimates the total modernization effort will cost about $37 billion through 2031, plus $11 billion for sustainment, totaling roughly $48 billion. Lawmakers cited a 2022 statement from Oracle Health CEO Mike Sicilia that the company would bear cost overruns, but Lawrence could not explain how that was reflected in current negotiations.