Pat Host 
- The VA’s EHRM would ensure clinicians can easily access a veteran’s health history in one location
- The agency has made EHRM a top priority and is accelerating the program’s rollout
- Hear directly from top federal healthcare technology officials at the 2026 Healthcare Summit!
The VA’s Electronic Health Record Modernization program is an ambitious technology effort that has the potential to transform and improve the delivery of veteran healthcare. This new EHR software would store health information, track all aspects of patient care and allow clinicians to connect Department of War and participating community care providers, ensuring clinicians can easily access a veteran’s full medical health history in one location.
The VA has made EHRM a top priority and is accelerating the program’s rollout. Additionally, the agency expects that modernized EHRs will better support nationally-standardized healthcare delivery, allowing innovations and best practices to more effectively be identified, shared and adopted. Consistent metrics from an enterprise EHR should improve efficiency and health system management.
Lastly, partnering with industry on EHRM will help the VA sustain the modernization of its health IT infrastructure into the future. Explore five essential insights for GovCons into the VA’s EHRM and discover the program’s progress and what it means for the future of federal healthcare technology efforts.
Unpack more strategies into how federal healthcare agencies are working to contain costs while improving and expanding access to care by attending the Potomac Officers Club’s 2026 Healthcare Summit on Dec. 3. The Navigating the Healthcare Trilemma panel discussion will feature:
- Todd Couts, Centers for Medicare and Medicaid Services deputy director of business services
- Dr. Gil Alterovitz, Department of Health and Human Services chief super intelligence officer
They’ll provide exclusive insights on the framework guiding their decisions, the tradeoffs they have confronted, the role of emerging technologies like AI and the approaches that are delivering measurable improvements. Secure your seat today!
1. Major Fight Brewing Over Funding
EHRM faces an impending battle over its level of funding in fiscal year 2027. The White House requested $4.2 billion for EHRM, which would represent a 25 percent increase over the $3.4 billion provided in FY26.
But an FY27 spending bill that passed the House only allocates $3.4 billion for EHRM, according to the Congressional Research Service. The House-passed bill also withholds 25 percent of its funding for EHRM until July 1, contingent upon the VA providing lawmakers with more information and meeting performance requirements, Washington Technology reported.
EHRM has suffered cost overruns, technical issues and patient safety concerns for years. A recent cost estimate provided to Congress estimated the project at around $37 billion, up from the original $10 billion made in 2018, according to the Military Officers Association of America.
2. VA Meets Its 2026 Rollout Goal and Plans Faster Pace in 2027
The VA met its 2026 rollout goal for EHRM by deploying electronic health records at 13 locations, setting up a 26-hospital push in 2027. The Louis Stokes Cleveland VA Medical Center, the Alaska VA Healthcare System and 16 affiliated outpatient clinics went live on Oct. 24. This moved more than 163,000 veterans and 7,800 staff across Ohio and Alaska onto modernized health records.
More than 780,000 veterans and 42,000 VA staff and clinicians now use the system, following earlier 2026 rollouts in Michigan, southern Ohio and Kentucky, and Indiana. VA plans to accelerate its pace to 26 hospitals next year, starting in January with four facilities in Milwaukee, Tomah and Madison, Wisconsin, and in Iron Mountain, Michigan.
Explore insights into federal healthcare plans for leveraging emerging technologies like quantum and cloud computing by attending the Potomac Officers Club’s 2026 Healthcare Summit on Dec. 3. Get beyond the headlines and hear directly from the most influential federal healthcare technology officials, including:
- Kimberly Brandt, CMS deputy administrator and chief operating officer
- Dr. Matthew Memoli, National Institutes of Health principal deputy director
Come away with a sharper read into federal healthcare business opportunities in 2027 and position your GovCon technology firm for increased healthcare revenues. Sign up now for this can’t-miss GovCon forum!
3. Oracle’s Contracts Grow
The VA in August raised the ceiling on its EHRM contact with prime contractor Oracle Health by $17 billion to $27 billion–a 170 percent increase. Oracle Health’s indefinite-delivery/indefinite-quantity contract was originally set to be completed by May 2028, but the contract modification extends its period of performance through May 16, 2023, with three additional one-year firm-fixed-price option periods.
The modified IDIQ includes the enterprise EHR system training, testing, deployment, sustainment and other requirements, FedScoop reported. The contract ceiling increase comes after the VA said it had reached the previous ceiling earlier than expected, prompting it to expand the contract until all transactions are completed.
4. VA Revised Its EHRM Acquisition Strategy
The VA revised its EHRM acquisition strategy in 2023 to bring in another contractor and diversify its supplier base. It finalized this new strategy by awarding Accenture Federal Services a $439 million contract in November 2025 for the VA’s EHRM Alliant 2 task order, Orange Slices reported.
AFS beat out two companies for this contract award. The company was provided $7.7 million at the time of contract award.
The VA renegotiated its original contract with Oracle Health in 2023 to allow for an annual review of EHRM progress and further renegotiation with the company, as necessary. This new approach also increased shared accountability across numerous key areas, including
- Minimizing outages and incidents
- Resolving clinician requests
- Improving interoperability with other health care systems
- Growing interoperability with other applications to ensure an integrated health care experience
5. More Business Opportunities Possible
The VA is performing market research for federal EHR transition support. The agency on June 11 issued a request for information seeking information from industry on interoperability and interface modernization solutions.
Interested contractors were required to address computer systems design services and program management support capabilities. The deadline for responses was June 29.
