EHR Restart Was ‘Phenomenal’ Despite Persistent Challenges at Initial Sites, VA Secretary Says

Why It Matters

A successful rollout restores confidence in a multi‑billion‑dollar federal IT overhaul and directly impacts care quality for millions of veterans, while unresolved bugs at early sites could jeopardize patient safety and future funding.

Key Takeaways

• VA’s EHR restart succeeded at four Michigan sites in 2026
• Total project cost now projected at about $37 billion
• Deployment schedule expands to 13 sites in 2026, doubling in 2027
• Early sites still face safety and usability bugs
• Congress allocated $3.4 billion for FY27 EHR modernization

Pulse Analysis

The Veterans Health Administration’s electronic health record (EHR) modernization has been a cautionary tale for federal IT projects. Initiated in 2018 with a $10 billion contract to Cerner, the effort has swelled to an estimated $37 billion after multiple delays, cost overruns, and a 2022 acquisition that rebranded Cerner as Oracle Health. The original plan promised a unified, interoperable platform to replace a patchwork of legacy systems dating back to 2001, but early deployments exposed critical safety flaws and fragmented data flows that eroded stakeholder confidence.

The latest milestone came in June 2026 when the VA resumed EHR go‑lives at four Michigan medical centers, a rollout that Secretary Doug Collins described as “phenomenal” and “flawlessly executed.” The successful launch has cleared the path for an expanded schedule of 13 sites in 2026, with a goal to double that number in 2027, supported by a $3.4 billion allocation in the FY27 appropriations bill. This momentum not only validates the $4.2 billion budget request for 2026‑27 but also signals that the agency can deliver large‑scale digital transformation when standardization and oversight are enforced.

Despite the progress, the VA still wrestles with lingering issues at the six early‑adopter sites, where software bugs once routed thousands of orders into an “unknown queue,” causing patient‑safety incidents. Interoperability remains a priority, as the department must link its EHR with community providers and the Defense Department’s health network. Congressional leaders, including Sen. Patty Murray, are demanding a detailed remediation plan and sufficient funding to address these legacy problems. If the VA can resolve the early‑site glitches while scaling the rollout, the $37 billion investment could finally deliver a unified health record system for America’s veterans.