(Bloomberg) -- Oracle Corp.’s massive contract to modernize the health records system with the US Department of Veterans Affairs has been extended 11 months following renegotiations.

The extension will have “an emphasis on improved fiscal and performance accountability,” the VA said Thursday in a statement. The VA is working toward “resuming site deployments in fiscal year 2025,” it said.

Oracle’s 2022 acquisition of Cerner Corp. came with the flagship $16 billion contract to replace the EHR, or electronic health records system, at the VA’s 172 facilities. But the work to implement the system has been marked by controversy. After highly publicized outages and patient deaths at just a handful of hospitals where the new software was installed, the rollout was paused by the government and is currently being used at only six VA medical centers.

A recent internal report by the VA said Oracle’s software is failing at its main job of helping improve patient care. “There is a trend toward improvement, however most users still indicate a negative experience,” VA researchers wrote in the report seen by Bloomberg.

The original five-year deal is now five one-year contracts with an annual review before the deal is renewed for the following term, the VA said. 

Oracle, in a statement, said “the contract extension is a testament to the progress Oracle and VA have made to fortify the EHR system over the past two years.”

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