Unveiling Oracle’s Cerner Fiasco: A Silver Lining for Healthcare’s Future

Recently, a colleague approached me and asked for my thoughts on Oracle’s decision to lay off 3000 employees from Cerner. To his surprise, I didn’t have a negative reaction — in fact, I saw it as a good start. As a healthcare professional, I’ve been following Cerner’s journey for quite some time, and I believe this is just the beginning of a much-needed transformation for the company. In this post, I’ll dive into the details of Oracle’s decision, Cerner’s troubled past, and why this may be the push the healthcare industry needs.

Let’s start with the basics — what exactly happened with Oracle and Cerner? Earlier this year, Oracle announced they would cut 3000 jobs from Cerner, a healthcare technology company that provides electronic health record systems and other healthcare IT services. While this news may have shocked some, it wasn’t necessarily surprising given Cerner’s history of struggle and questionable leadership decisions. But simply cutting jobs isn’t enough to fix the more significant issues.

As mentioned earlier, Cerner‘s’ troubled past has hindered its success as a healthcare technology brand. While they may have been one of the first companies to offer electronic health records, they haven’t necessarily been the best in innovation or meeting their customers' needs. Most recently, the VA halted its Cerner deal indefinitely due to EHR issues and continued problems with the roll-out. And I thought the VA had had enough of the billion-dollar, disastrous relationship, but it seems that the VA has gone back for more abuse. In a new arrangement, the VA is setting some boundaries (1 day late and 10 billion dollars short, in my opinion) to include five 1-year contracts to ensure the existing five sites have the proper scaffolding to ensure a working EHR system. Many have criticized their systems as clunky, outdated, and difficult to use — making it clear that Cerner needs to make some chantor to stay relevant in the industry.

So, what else needs to be done to make Cerner more valuable? This is where we can see the benefits of Oracle’s decision. By cutting jobs, Cerner will have to restructure and re-evaluate its priorities, potentially leading to a more streamlined and customer-centric approach. Additionally, by partnering with a larger company like Oracle, Cerner will have access to more resources and expertise to help them improve their services and stay competitive in the market. Let’s not sugar-coat it; Cerner is not a sound EHR system; it’s an early-gen system, with legacy values, in my opinion. Like Epic, Cerner had friends in high places, allowing them to capitalize on huge government contracts. But unlike Epic, Cerner has neither the talent nor the innovation to serve large populations. Continuing to throw good taxpayer money after bad is a study in futility. Oracle’s decision to stop the nonsense is probably the best that could have happened to Cerner, and I applaud it.

It’s also important to mention that this decision by Oracle could have positive implications for the healthcare industry as a whole. Electronic health records are an essential part of modern healthcare, and they must be efficient, effective, and user-friendly for healthcare providers to deliver the best care possible. By pushing Cerner to improve their services and innovate, we may see a ripple effect across the industry — encouraging other companies to step up their game and ultimately leading to better patient outcomes.

Here’s the thing, while some may see Oracle’s “gutting” of Cerner as a hostile move, I believe that it’s the push the company needs to make real change. With a troubled past and lackluster services, Cerner must re-evaluate its priorities and innovate to stay competitive in the healthcare technology market. With Oracle‘s cutting jobs and putting some measurable goals in place, we may see a renewed focus on customer satisfaction, efficiency, and innovation — ultimately leading to better care for patients and a stronger future for the healthcare industry as a whole. Let us hope.

I’d love to hear your opinion on the future of Cerner. Leave me a comment or send me a tweet.