Oracle's $16B VA Health Software Receives Poor Ratings in Internal Evaluation

Veterans Affairs Criticizes Oracle’s EHR System for Poor Performance in Enhancing Patient Care

The U.S. Department of Veterans Affairs (VA) has expressed significant dissatisfaction with Oracle Corp.'s medical records software. Internal survey data revealed that the system, part of a $16 billion contract, is underperforming in its primary mission of improving patient care. The VA has been renegotiating this contract due to subpar system performance and critical employee feedback.

Internal Survey Data Highlights System Shortcomings

A recent VA survey of nearly 2,000 health employees across five facilities showed that less than 20% believe Oracle's electronic health records (EHR) system enables them to provide high-quality care. Conducted with KLAS Research, the survey indicated a pervasive negative experience among users. Even though some improvements are noted, the overall sentiment remains low, with less than 50% of average U.S. health facility employees using Oracle’s EHR rating the product positively.

System Rollout and Delay Due to Critical Issues

Oracle inherited the flagship contract to replace the outdated EHR system for the VA’s 172 facilities after acquiring Cerner for $28 billion in 2022. The implementation has faced numerous challenges, including highly publicized outages and patient deaths, prompting the government to pause the rollout.

Measures and Recommendations

The VA’s survey, forming part of a recurring performance review, showed that only about 22% of respondents found their training on the new system helpful, and less than half felt adequately informed about the transition to the new EHR. KLAS recommended targeted training and enhanced communication plans, but VA officials acknowledged that achieving satisfaction levels comparable to other Oracle Cerner customers in the U.S. remains a long-term goal.

Efforts to Address System Performance

Oracle claims to have made numerous improvements to enhance the EHR system's reliability and performance. However, VA users continue to report low satisfaction levels, with only 13% stating the EHR system ensures patient safety.

Future Prospects and Legislative Oversight

The Oracle-VA contract remains on hold until the system demonstrates high functionality at current sites. Lawmakers have introduced a bill to increase project oversight, potentially ending it in two years unless significant improvements are made. Oracle has begun lobbying to continue the project, asserting that their system can provide reliable care, as seen in other deployments.

Financial Implications and Broader Health Sector Challenges

Having already spent $6 billion on the project, the VA’s dissatisfaction might result in exploring additional software vendors for improvement. Big Tech’s ventures into healthcare, including Oracle's attempts, face broad challenges, struggling to meet the high expectations set for these critical applications.

The VA plans to share survey results with Congress and gather additional feedback from a recent deployment in Illinois to decide the next steps for the nationwide rollout of Oracle’s EHR system.