Six hospitals in six years, $13.8 billion spent. The VA's new health-record plan calls for thirty hospitals a year.
Summary
The VA's electronic health record modernization was sold to Congress in 2019 at $16.1 billion. An independent estimate in 2022 said $49.8 billion. In December 2025, VA gave lawmakers a new number — about $37 billion — that it still has not given its own auditor, which has been asking for an updated estimate since 2021. Deployments resumed this spring after a pause forced by a system that sent 11,000 clinical orders into an undetectable 'unknown queue' (149 adverse patient events) and left 69% of users dissatisfied. Sixteen of GAO's eighteen recommendations remain unimplemented — including the one that says set user-satisfaction targets before deploying again.
The documents
Five documents, read directly. The current assessment is 's Electronic Health Record Modernization: Critical Actions Needed to Support Accelerated System Deployments (-26-108812, December 15, 2025), delivered as testimony to the House Veterans' Affairs technology subcommittee the day presented its restart plan. The money history is 's March 2025 cost-and-schedule report (-25-106874). The patient-safety record is the Inspector General's The New Electronic Health Record's Unknown Queue Caused Multiple Events of Patient Harm (VAOIG-22-01137-204, July 2022). The ~$37 billion figure and hearing exchanges are from contemporaneous reporting on the December 15 hearing, read against 's deployment announcements.
The money
The program has one contract, one mission, and three prices:
View data as table
| VA lifecycle estimate, Jan 2019 | $16.1B | ~$10B Oracle Cerner contract + $6.1B infrastructure/management |
|---|---|---|
| IDA independent estimate, Oct 2022 | $49.8B | 13-year implementation + 15-year sustainment |
| VA's new estimate, Dec 2025 | ~$37B | given to the House subcommittee; not shared with GAO |
| Obligated through Q2 FY2025 | $13.84B | contract $5.4B, IT infrastructure $3.1B, VHA $2.6B, management $1.3B |
The $16.1 billion figure is the one the program was justified with in January 2019. The $49.8 billion figure is what the Institute for Defense Analyses calculated in October 2022 when finally commissioned an independent look — three times the original, more than a third of it sustainment costs the 2019 estimate barely addressed. The ~$37 billion figure is what told the House subcommittee in December 2025. 's first recommendation, open since 2021 and concurred with by , is to produce a reliable updated lifecycle estimate; 's December testimony records that "as of December 2025, the department has not provided an updated cost estimate." The auditor charged with checking the number learned it from the hearing. Meanwhile $13.84 billion — 86 percent of the original all-in price — is already obligated, with six hospitals converted.
The people
The pause this restart ends was not budgetary. It was clinical. At the first site, Mann-Grandstaff in Spokane, the new system delivered more than 11,000 orders for care into an "unknown queue" — an undetectable holding pen for orders the software couldn't match — without telling the queue existed. Clinicians' lab orders and referrals simply vanished. Working through 1,286 case assessments, VHA identified 149 adverse events for patients. By September 2024, per 's survey data, 23 percent of users agreed the system enables quality care; 13 percent said it made them efficient; 69 percent were dissatisfied overall. That is the workforce now scheduled to absorb thirty go-lives a year:
View data as table
| Live after six years | 6 sites | deployments paused April 2023 after safety and reliability failures |
|---|---|---|
| 2026 plan | 13 sites | restart began with 4 Michigan facilities |
| 2027–2031 implied pace | ~30 sites/year | to reach ~170 by 2031 |
The cross-examination
Set the restart plan against the auditor's checklist. 's 18 recommendations are the program's repair manual: an honest cost estimate, a reliable master schedule, a -specific change-management strategy, an independent operational assessment of whether the system is suitable for users, and — most pointed — user-satisfaction targets established before future deployments. Sixteen of eighteen are unimplemented, including 11 of the 12 designated priority. 's organizational change management was partially consistent with seven of eight leading practices and consistent with none fully documented in a -approved strategy. concurred with all of it — concurrence dates back years — and then scheduled the acceleration anyway. The department's public case, made by its acting program chief at the December hearing, is that the system has "made significant strides in stabilizing," with new governance and a renegotiated Oracle contract carrying "additional accountability measures." That claim is not audited; the 23 percent figure is. The program's official record thus contains both assertions at once: stabilized enough to go five times faster, and too unmeasured to say what satisfied would mean.
What happens next
The restart is live: the four Michigan facilities (Detroit, Ann Arbor, Battle Creek, Saginaw) went first in mid-2026, with nine more sites — Ohio, Indiana, Kentucky, Alaska — slated to bring the year to thirteen, and roughly 170 total by 2031. Each go-live is a hospital switching every order, prescription, and referral to the new system in a weekend. 's open recommendations remain the scoreboard to watch, along with the next user-satisfaction survey and whatever lifecycle estimate finally reaches the auditor. The Oracle contract's five one-year option structure gives Congress an annual pressure point; the appropriations committees fund the program one year at a time.
The takeaway
- The estimate the decision rests on is the one nobody will stand behind. $16.1 billion sold it, $49.8 billion is the only independent number, ~$37 billion went to Congress — and the auditor has none of them confirmed. 86 percent of the original budget is already spent on 3.5 percent of the footprint.
- The pace is the risk. Six sites in six years, with a multi-year safety pause in the middle; the plan now requires thirty a year from a workforce of whom 23 percent think the system supports quality care.
- The checklist for restarting safely exists and is unexecuted. Satisfaction targets before deployment, independent operational assessment, a change strategy — 16 of 18 recommendations open, all concurred with, none blocking the schedule.
All figures are from the documents cited in-line, each read directly. The ~$37 billion estimate is as reported from the December 15, 2025 hearing; had not received or evaluated it as of that date. The 149 adverse events cover the unknown-queue review period (October 2020–June 2021) at initial sites.
Sources
- U.S. Government Accountability Office, Electronic Health Record Modernization: Critical Actions Needed to Support Accelerated System Deployments, -26-108812 (Dec. 15, 2025) — restart plan and site lists, 2031 target, recommendation status (2 of 18), change-management findings, obligations through Q2 FY2025, cost-estimate status. gao.gov/products/gao-26-108812
- , Electronic Health Records: Making Incremental Improvements in New System but Needs Updated Cost Estimate and Schedule, -25-106874 (Mar. 12, 2025) — the $16.1B and $49.8B estimates, obligation breakdown, six live sites, April 2023 pause, September 2024 user-survey results. files.gao.gov
- Office of Inspector General, The New Electronic Health Record's Unknown Queue Caused Multiple Events of Patient Harm, VAOIG-22-01137-204 (July 2022) — the 11,000+ undelivered orders, 1,286 assessments, 149 adverse events, vendor non-disclosure of the queue. vaoig.gov (PDF)
- Nextgov/FCW, reporting on the December 15, 2025 House Veterans' Affairs technology subcommittee hearing — the ~$37B estimate presented to lawmakers but not ; program-office and witness statements. nextgov.com
- House Veterans' Affairs Subcommittee on Technology Modernization, written testimony of Carol Harris, (Dec. 15, 2025) — the testimony version of -26-108812. docs.house.gov
Comments
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The finding, in one paragraph: the Department of Veterans Affairs is this year resuming — and radically accelerating — the largest health-IT project in American history, on the strength of a schedule that requires it to do every year, five years running, five times what it accomplished in its best six years combined; with a total price that its own numbers put somewhere between $16 billion and $50 billion depending on the document; while the program's auditor reports that the department has implemented 2 of its 18 recommendations, has no approved change-management strategy of its own, and — as of the hearing where told Congress the new price — had still not been given that price itself.