After Oracle acquired Cerner for $28.4 billion in June 2022, the company lost at least a dozen of the EHR vendor's large clients, Bloomberg reported May 9.
Bloomberg conducted interviews with more than 30 current and former employees and customers of Cerner who said in 2023 a dozen major clients finalized agreements to substitute Oracle Health software. Additionally, they stated that "bold product ideas" for Cerner, now known as Oracle Health, have taken a backseat.
According to the report, most of the work Oracle has done with Cerner has been focused on updating its legacy systems. Oracle engineers have also been taken aback by the significant effort needed to enact changes and transition customers to the cloud, Bloomberg reported.
Unreported financial documents obtained by the publication also reveal that sales from the division including Cerner are projected to decrease in the ongoing fiscal year and remain stagnant in the subsequent year due to the suspension of a multibillion-dollar federal contract.
This has caused Oracle to lay off thousands of employees in a bid to enhance profitability, Bloomberg reported.
Existing clients also told the publication that since the acquisition, they have seen little improvement in the Oracle Health software.
"We've heard very, very loudly that our customers need us to address the present — they have issues today," Marc Levy, vice president and architect of software development for Oracle said during a November webinar for clients, held to respond to complaints and demonstrate progress.
Oracle did not respond to Bloomberg's requests for comment on Cerner's performance.