Oracle Corp.’s digital medical records business, now known as Oracle Health following its acquisition of Cerner Inc. two years ago, has been experiencing a decline in U.S. market share. In 2023, Oracle Health lost hospitals and other acute care facilities totaling 15,392 beds, a significant increase from the previous year when it lost facilities with 4,658 beds. The decline was attributed to problems with product performance and revenue tracking tools, leading several large multi-specialty organizations to switch to Epic Systems, Cerner’s main competitor.
Despite Oracle’s initial optimism after acquiring Cerner for $28 billion, the company has been facing challenges as revenue has declined due to customer departures. While Oracle continues to win new deals with small independent hospitals and a large health system, the company’s growth opportunities may lie outside the US. Oracle has secured agreements to provide health systems software for public entities in Sweden, the United Kingdom, and Saudi Arabia, indicating potential growth in international markets.
The company’s struggle to retain customers and falling sales highlight the difficulties Oracle has encountered since entering the healthcare industry. The acquisition was intended to modernize outdated systems and drive profits, but the reality has been far from ideal. Oracle’s recent loss of major customers to Epic underscores the competitive landscape and the challenges the software giant faces in this market.
As Oracle looks to address its declining market share and revenue, the company must focus on improving product performance and addressing issues with its revenue tracking tools. With growth opportunities outside the US, Oracle may need to shift its strategy to capitalize on international markets where it has seen some success. Ultimately, Oracle’s ability to adapt and innovate in the healthcare industry will determine its future success in this competitive market.
In conclusion, Oracle Health, formerly Cerner Inc., has been struggling to retain US market share in the digital medical records business. Despite initial optimism following the acquisition, Oracle has faced challenges with customer departures and falling sales. The company’s focus on international markets may present growth opportunities, but addressing issues with product performance and revenue tracking will be critical to its future success in the healthcare industry.
Article Source
https://finance.yahoo.com/news/oracle-cerner-unit-customer-losses-161442071.html
