Congress Subpoenas Oracle Chiefs Over VA Health Records Cost That Nearly Tripled

The House Veterans Affairs Committee voted unanimously last week to subpoena the two most senior executives at Oracle, demanding answers about a federal health records project that has run years behind schedule while its cost ceiling nearly tripled, all without competitive bidding.

The vote, reported by Healthcare Dive and confirmed in a press release from Rep. Maxine Dexter's office, targets Oracle Executive Chairman Larry Ellison and CEO Mike Sicilia. The committee wants them under oath, not in a conference call.

The backstory is not complicated, though the price tag is. The VA signed a 10-year, $10 billion contract with Oracle to replace a decades-old health records system used at more than 170 medical centers that serve millions of veterans. Last month, according to a statement reviewed by FedScoop, the VA quietly extended that contract and raised the cost ceiling by $17 billion, bringing the total to roughly $27 billion. The extension was awarded without a competitive bid.

For context on what that money has produced so far: according to Healthcare Dive, just 17 of the 170 planned medical centers had deployed the new system as of the hearing. That's a decade into a project originally sold on a 10-year timeline.

Oracle had initially accepted an invitation from the committee to testify on Sept. 2, according to Federal News Network. Then, the day after accepting, the company withdrew, citing what it called time constraints. Rep. Mark Takano of California, the committee's ranking member, said in a public statement that Oracle's Aug. 31 letter simply reiterated its refusal to appear.

The hearing went ahead without Oracle present. VA Deputy Secretary Paul Lawrence testified, telling lawmakers the project had picked up momentum. He noted the VA in April completed its largest single-wave deployment, activating the new system at four Michigan hospitals, including facilities in Ann Arbor, Battle Creek, Detroit and Saginaw, along with affiliated community clinics. But that milestone landed cold in a hearing room where members were asking how 160-plus facilities still haven't seen the system at all.

Carol Harris, the Government Accountability Office's director of information technology and cybersecurity, told the committee that the VA still hadn't acted on 14 of GAO's 18 recommendations related to cost estimates, scheduling, and user satisfaction, as of August 2026, according to Rep. Dexter's office.

The GAO's unfinished recommendation list matters on the ground. Clinicians at VA facilities running on the legacy system carry workarounds built over decades. Every delayed transition is a delayed fix to interoperability gaps, medication reconciliation tools, and referral tracking that frontline providers use to manage complex veteran patients, many of whom carry multiple chronic conditions.

Rep. Dexter, an Oregon Democrat who is also a physician, framed the subpoena in patient-care terms. In remarks reported by Stars and Stripes, she called on Oracle's executives to testify about whether veterans and taxpayers were getting what they were promised. Committee Chairman Mike Bost, an Illinois Republican, described the project's track record as a "boondoggle" and said the committee has learned repeatedly that VA's first price tag is rarely the last one.

It's not yet clear when or whether Ellison and Sicilia will comply. MedCity News reported the timeline for their appearance remains unresolved, and Oracle has not said publicly whether it will cooperate with the subpoenas. The contract's current end date is 2031, which means more than 160 facilities would need to deploy in roughly five years, a pace well above anything the project has managed so far.

Sources cited:
- Rep. Maxine Dexter press release (dexter.house.gov) (https://dexter.house.gov/media/press-releases/house-veterans-affairs-committee-unanimously-passes-rep-maxine-dexters-motion)
- Federal News Network (https://federalnewsnetwork.com/veterans-affairs/2026/09/house-va-lawmakers-to-subpoena-oracle-over-ehr-contract/)
- Healthcare Dive (https://www.healthcaredive.com/news/lawmakers-to-subpoena-oracle-execs-as-ehr-project-costs-rise/829671/)
- FedScoop (https://fedscoop.com/oracle-subpoena-house-hearing-va-27b-ehrm-contract/)
- MedCity News (https://medcitynews.com/2026/09/oracle-healthcare-ehr-va/)
- Stars and Stripes (https://www.stripes.com/veterans/2026-09-03/house-committee-subpoena-oracle-health-records-22743007.html)