MAY 29, 2014
Nkenge Harmon Johnson
Governor Kitzhaber: Oregon Should Take Immediate Legal Action to Hold Oracle Accountable
Oracle's failure is unacceptable to Oregonians who need and deserve quality health care
(Salem, OR) —
Governor Kitzhaber today asked Oregon Attorney General Ellen Rosenblum to immediately initiate legal action to recover payments and other damages from Oracle, the state’s chief technology vendor for Cover Oregon. Citing Oracle's failure to deliver to the state a fully functional website for health insurance enrollment, the Governor next made a request to Daniel Levinson, the Inspector General of the U.S. Department of Health and Human Services, to evaluate the work performed by Oracle and consider the full range of legal options. He also wrote Senators Ron Wyden and Jeff Merkley requesting they use their oversight authority to help investigate and recoup taxpayer dollars paid to Oracle.
The Governor described these actions while presenting to the Oregon State Legislature Joint Committee on Legislative Audits, Information Management and Technology. The Governor’s prepared remarks are below. Audio of the Governor delivering his remarks is available at:
REMARKS AS PREPARED
Good afternoon. Before you begin with your regular agenda and updates, I appreciate you allowing me a few minutes to discuss steps I’m taking to demand further accountability and begin fighting to recover the public’s investment in Cover Oregon as we continue to ensure that the people of this state have better access to quality, affordable health care.
As you know, I have already taken a number of actions to respond to the failed website at Cover Oregon. I commissioned First Data to conduct an independent review of the project, to identify mistakes that were made, and to make recommendations on how best to move forward. And I have been following through on those recommendations – holding accountable those at the Oregon Health Authority and Cover Oregon whose decisions contributed to the failure to deliver a working website.
We are making progress moving away from the failed technology toward a reliable enrollment process with the federal exchange that will ensure Oregonians have better access to health care.
But we have unfinished business. I have prioritized cleaning up our own house before reviewing and commenting on the performance and failings of Oracle, Cover Oregon’s primary website developer.
We have acknowledged that oversight was a problem at Cover Oregon. But better oversight would only have given us a clearer and earlier picture of Oracle’s poor performance. Oracle did not deliver. The poor quality of its work is obvious in the many bugs that are still not fixed, in missed deadlines, in the fundamental flaws in the system’s architecture, and in the independent assessments and quality assurance reports that concluded Oracles work was regularly incomplete, routinely late, and below industry standards.
From First Data’s independent assessment to Maximus’ quality control assessments to CMS’s Technical Assistance report earlier this spring – all reviews have detailed a pattern of underperformance, missed deadlines, and poor project management.
Most troubling of all are those allegations that seem to point to Oracle’s lack of respect towards its customers in Oregon. One Oracle reviewer’s report ends by calling into question “their commitment to resolving technical problems during such a critical time.”
Oracle’s failure is unacceptable to Oregonians who need and deserve quality health care and who have been faced with months of uncertainty, confusion and delays. And it is unacceptable to me and my commitment and responsibility to this state.
From the time that I began practicing emergency room medicine in Roseburg in 1974, improving the lives and health of Oregonians has been my overarching professional and political goal. Despite the success of our Coordinated Care Organizations to reduce costs and improve health outcomes and our efforts to enroll more eligible Oregonians through expanding Medicaid, the failed rollout of the Cover Oregon website has cast a shadow on these reform efforts, the success of which is crucial to Oregon’s future.
The time has come to hold Oracle accountable for its failure to deliver technology that worked on the timelines the company committed to. Today I have asked Oregon Attorney General Ellen Rosenblum to immediately initiate legal action to recover payments and other damages from Oracle.
I have written to the Inspector General of the U.S. Department of Health and Human Services, Daniel Levinson, urging him to evaluate the work performed by Oracle and to consider the full range of legal options.
I have also written to our U.S. Senators, Ron Wyden and Jeff Merkley, requesting they use their oversight authority to help investigate and recoup taxpayer dollars paid to Oracle. As Chair of the U.S. Senate Committee on Finance, with jurisdiction over the Affordable Care Act, Senator Wyden is well positioned to examine the company’s performance and accountability. The state and federal government can and should work together to recoup those lost taxpayer dollars.
Finally, we are fully collaborating with the investigation being led by the United States Department of Justice in the hope that its findings will contribute to a successful legal outcome against Oracle.
Let me be clear. I believe the law is on our side. I believe justice is on our side. I also understand that Oracle is a large corporation, the second largest software company in the world, and it will undoubtedly fight us tooth and nail, but I will not allow that to stop us from recovering the money Oracle received for technology that did not work and was not delivered on time.
I am confident that with the actions we have taken – and are taking today – and with the continued dedication and hard work of the thousands of Oregonians engaged in transforming the delivery of health care in Oregon, we will succeed. From health care providers and hospital administrators, to Democratic and Republican lawmakers, to agents, community partners, and small business owners and dedicated state workers helping fellow Oregonians everyday — we are moving forward to make this system work.
We will succeed in improving the lives of Oregonians with better health and better care at lower costs. I’m not saying it’s going to be easy or that we won’t face new challenges along the way – but I am saying that Oregon will continue to be the place where we face problems head on, and we come together to solve them.
If you have questions, I am happy to answer them.