The House Committee on Veterans Affairs has subpoenaed Oracle leaders Larry Ellison, chairman and founder, and Mike Sicilia, CEO, to answer lawmakers' questions about why a no-bid modification raised the tech giant's contract ceiling from $10 billion to $27 billion.
WHY IT MATTERS
Ellison is to appear under oath on Dec. 10, according to his subpoena posted on the House VA Committee Democrats' website and Sicilia on Nov. 19, per his summons.
Ellison and Sicilia "must answer under oath for what veterans will receive in exchange for a contract ceiling tripled behind closed doors," Ranking Member Mark Takano, D-California, said in a statement.
We've reached out to an Oracle representative for a statement about these summonses and whether Ellison and Sicilia plan to appear, and we will update this story if one is provided.
THE LARGER TREND
Earlier this month, during a scheduled Electronic Health Record Modernization program status update, the House VA Committee voted unanimously to subpoena Ellison and Sicilia to explain why $17 billion more is needed to deliver a new electronic health record to all Veterans Affairs Medical Centers.
Paul Lawrence, VA deputy secretary, said that he was unable to answer questions about the additional EHR procurement costs.
Both the ranking member and Committee Chair Mike Bost, R-Illinois, said during the hearing that Sicilia told Congress in 2022 that Oracle would bear the cost of fixing the system.
Lawmakers on both sides of the aisle have questioned the EHR Modernization program after years of delays, technical failures and patient safety concerns affecting veterans.
Takano alleged that Ellison's political contributions in 2024 were followed by valuable amendments to Oracle's EHR Modernization program contract and that "Oracle must account for every additional dollar it could receive."
Of note, the company reported in a U.S. Securities and Exchange Commission filing made Sept. 11 that it has supplemented its "2026 Restructuring Plan by approximately $700 million to reflect additional actions that we expect to take."
In March, Oracle announced a significant reduction in force that impacted employees across the organization, including in its health division, and then implemented more layoffs in June.
Business Insider reported that an unspecified number of layoffs at the tech company have begun this week, based on a notification email the publication reviewed.
"After careful consideration of Oracle's current business needs, we have made the decision to eliminate your role as part of a broader organizational change," Oracle allegedly said in the email to affected employees.
Oracle also said in its latest SEC filing that its operating expenses increased by $2 billion in the first quarter of FY27, relative to the first quarter of FY26, "due to a $2.8 billion increase in cloud and software expenses primarily due to higher infrastructure expenses and a $103 million increase in hardware expenses."
ON THE RECORD
"This is an important victory for veterans, taxpayers and congressional oversight," Takano said in a statement. "Oracle agreed to testify, backed out then tried to substitute private conversations for public accountability."
"No corporation is too powerful, and no billionaire too politically connected, to answer to the American people," he added.
https://www.healthcareitnews.com/news/oracle-leaders-receive-subpoenas-appear-house-va-committee
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