Oracle's Cerner Acquisition Faces Scrutiny After EHR Failures & Patient Deaths

A flaw in Cerner's EHR system reportedly caused over 11,000 medical orders to disappear into an "unknown queue," preventing treatments for thousands of patients.

Cerner Corporation’s electronic health record (EHR) system recently suffered severe operational failures. The rollout of Cerner's EHR at the Department of Veterans Affairs (VA), which serves nine million veterans, has been disastrous, Business Insider reported.

A critical flaw in the system led to over 11,000 medical orders vanishing into an "unknown queue," preventing thousands of patients from receiving prescribed treatments.

This means that Oracle Corporation's bet on Cerner Corporation has backfired. The EHR's association with patient deaths has resulted in significant liability for Oracle.

In 2021, Oracle Corporation made a bold move by acquiring Cerner Corporation for $28 billion, aiming to revolutionize healthcare through advanced EHR integrated with AI technology.

Cerner, a leading EHR provider, manages the health records of a quarter of all American hospitals, including critical systems for the Pentagon and the Department of Veterans Affairs (VA).

Oracle intended to harness Cerner's extensive medical data to create a cutting-edge, AI-driven EHR system.

Tragically, these system errors have been implicated in three patient deaths, highlighting the grave consequences of the flawed technology.

Larry Ellison, the founder of Oracle, envisioned transforming healthcare with an AI-enhanced EHR system that could significantly improve patient outcomes and reduce costs.

Instead, the company now faces a substantial liability due to the inherited dysfunctions of Cerner's system. Oracle is in a race against time to address these critical issues and prevent further harm to veterans relying on the VA's healthcare services.

Despite these setbacks, Oracle is continuing to look forward to its AI ambitions. The company is reportedly in discussions with Elon Musk's AI startup, xAI, for a potential $10 billion deal to rent Oracle's AI servers.

If finalized, this partnership would make xAI one of Oracle's largest customers and highlight Oracle's ongoing commitment to advancing AI technologies.

The healthcare industry is increasingly seeking AI to streamline administrative processes, optimize treatment plans, and enhance diagnostic accuracy. The global AI in healthcare market is projected to reach $148.4 billion by 2029, presenting substantial opportunities for companies such as Oracle to drive innovation.

Oracle's acquisition of Cerner was meant to herald a new era in healthcare powered by AI. Instead, it has turned into a significant challenge, with patient safety and system reliability at stake.

As Oracle works to resolve these issues, its efforts will be closely watched by both the tech and healthcare industries. The outcome will not only impact Oracle's future but could also influence the broader adoption of AI-driven healthcare solutions.

In another development, Oracle recently unveiled its Autonomous Shield initiative, which aims to fortify cybersecurity defenses for healthcare organizations.

The company said the Autonomous Shield initiative will simplify and expedite the migration of Oracle Health Electronic Health Record (EHR) customers to OCI by leveraging Oracle Cloud Infrastructure (OCI). This will incur no additional cost on the part of its healthcare clients.