Oracle Corporation took a significant risk when they acquired Cerner Corporation for 28 billion dollars, aiming to revolutionize healthcare by integrating Cerner’s electronic medical records system with Oracle’s AI models. However, the implementation of Cerner’s system has been associated with patient deaths, posing a serious liability for Oracle.
Cerner’s electronic health records (EHR) system, utilized by a quarter of American hospitals including those run by the Pentagon and the Department of Veterans Affairs (VA), has been plagued by serious failures. The system’s shortcomings resulted in more than 11,000 healthcare requests disappearing into an unknown queue, leading to patients not receiving vital treatments prescribed by their doctors. These errors were connected to three patient deaths, causing widespread concern and criticism.
Despite Oracle’s ambitious plans to create an advanced AI-powered healthcare system, the acquisition of Cerner has become a significant challenge for the company. Oracle is now under pressure to address the dysfunctional aspects of Cerner’s system to prevent further harm to veterans and patients. This situation has cast a shadow over Oracle’s vision of using AI to enhance patient outcomes and reduce healthcare costs.
Despite the setbacks, Oracle remains committed to advancing its AI capabilities in healthcare. The company is reportedly in discussions with Elon Musk’s AI startup, xAI, for a potential $10 billion deal to rent AI servers from Oracle. If finalized, this agreement would establish xAI as one of Oracle’s major clients, highlighting the growing importance of AI in the healthcare industry.
The healthcare sector is increasingly turning to AI technologies to streamline operations, improve treatment plans, and enhance diagnostic accuracy. The global AI in healthcare market is projected to reach $148.4 billion by 2029, presenting significant opportunities for companies like Oracle to drive innovation and transformation in the industry.
In summary, Oracle’s acquisition of Cerner aimed to leverage AI to revolutionize healthcare but has faced challenges due to the shortcomings of Cerner’s EHR system. Despite these obstacles, Oracle remains committed to advancing its AI capabilities in healthcare and exploring partnerships with companies like xAI. The growing adoption of AI in the healthcare industry underscores the potential for innovation and transformation in patient care and healthcare delivery systems.
Article Source
https://www.benzinga.com/news/24/05/38914930/oracles-28b-gamble-on-cerners-ai-driven-health-records-system-backfires
