Oracle Health, a technology giant that acquired electronic health record vendor Cerner three years ago, has faced challenges in customer retention and satisfaction, according to a recent report by Klas Research.
The report reveals that Oracle Health has lost 57 unique acute care customers, including 12 larger health systems with more than 1,000 beds, in the past three years. Despite this decline, there are some positive aspects for Oracle, as customers have expressed growing confidence in the company’s long-term vision and see progress in the implementation of new technologies, such as the artificial intelligence agent.
The acquisition of Cerner for over $28 billion in 2022 marked Oracle’s expansion into the healthcare sector. However, the company inherited issues from Cerner, including a troubled EHR rollout at the Department of Veterans Affairs, which was plagued by errors and technical issues.
Customer dissatisfaction has been a challenge for Oracle, with clients citing poor communication, lack of industry knowledge, increased focus on collections, and unfulfilled promises. Half of the customers interviewed stated that they would not repurchase the EHR in 2024 due to low satisfaction levels.
Notable health systems clients like Intermountain Health, UPMC, Henry Ford Health, Adventist Health, and ChristianaCare have moved away from Oracle Health between 2022 and 2024, according to Klas Research. In contrast, Oracle’s competitor Epic has been gaining market share among hospitals, controlling over 42% of acute care hospitals in 2024 compared to Oracle’s 23%.
While some clients do not see Oracle as a long-term partner, there is excitement about the company’s future vision. Clients have reported improvements in code quality in new releases and are enthusiastic about Oracle’s new technologies, such as the Clinical AI Agent, which automates patient documentation and suggests next steps.
Oracle is further integrating AI into its new EHR, recently launched for ambulatory providers. However, there is uncertainty among respondents about adopting the AI-backed EHR, with over 70% unsure about adoption and 24% expecting to go live in the next two to three years.
Despite these challenges, Oracle continues to innovate and evolve its healthcare offerings. The company’s commitment to advancing technology in the healthcare sector remains strong, as it strives to address customer feedback and improve overall satisfaction.
Please note that Oracle did not respond to a request for comment on the report by the time of publication.
