In its quarterly earnings release earlier this month, Oracle Corporation reported its Q2 2023 results, showing that “revenue increased 18% year-over-year in USD and increased 25% in constant currency to $ 12.3 billion.” This is a remarkable achievement, especially in the context and background of economic uncertainty and the storms of recession. Notably, Cerner contributed $1.5 billion in total revenue, indicating it as an important source of ongoing profits.
Cerner is a leading electronic health records (EHR) company, with a variety of offerings and services in the healthcare management and data space. Late last year, Oracle bought Cerner for about $28 billion, a price that was celebrated and cautiously praised. For many, the sticker price was unbelievably high. But the founder of Oracle, Larry Ellison, was clear in his vision of the purchase: “Working together, Cerner and Oracle have the ability to transform the delivery of health care by providing medical professionals with better information – enabling them to make better treatment decisions that lead to better patient outcomes .”
In this month’s press conference, Ellison was equally emphatic about his goals and vision for Cerner and Oracle’s progress in health care. He explained: “Since the acquisition, Cerner has contributed to Oracle’s growth—and Oracle has helped Cerner develop its technology. […] But we are just beginning our work to modernize healthcare information systems. In the wake of the COVID pandemic, there is a sense of urgency around the world to reform and improve national health systems. Our goals are ambitious: to automate clinical trials to shorten the time it takes to bring new life-saving medicines to patients, enable doctors to easily access better information that leads to better patient outcomes, and provide public health professionals with an early warning system that detects and identifies. new pathogens in time to prevent the next epidemic. The scale of this opportunity is unprecedented—and so is the responsibility that comes with it.”
Every technology industry is looking for a piece of the digital health and healthcare information landscape, as healthcare is increasingly turning to innovation to solve some of its toughest problems. Bedrock technology companies like Cerner offer strong value—not only in terms of improved data and information management to provide better clinical care, but also in their ability to constantly innovate.
Other technology giants, such as Oracle, have begun to embrace this opportunity. Take for example Google, which continues to present a very diverse list of healthcare technology solutions. The company’s latest venture with the Google Cloud Healthcare Data Engine is poised to become one of the strongest forces in healthcare data management, and will undoubtedly be a game-changer.
Notably, smaller organizations are also working to innovate in this space, from startups to boutique analytics shops. These organizations develop unique data and insights to enable better clinical outcomes. Take Komodo Health for example. The company used its expertise to create its Healthcare Map software, which provides research on “330 million patients, 15 million new clinical encounters every day, and complete profiles of 150 million payers.” This includes “75% concordance with 350 hospitals and 96% concordance with 11 billion laboratory records. [which] it provides unparalleled insight into the patient journey.”
Another notable company is Flatiron Health, which has created a number of services and technologies focused on oncology, life sciences and hospital systems. The company has grown significantly over the past few years, taking data from “more than 3 million available patient records,” of which “75% comes from public practices, [and] 25% are from academic cancer centers.”
Therefore, it is clear that this space is quickly becoming one of the most sought-after opportunities for companies and technology organizations around the world. The next decade will see more companies investing and innovating in this field. Technology professionals and healthcare organizations will be challenged to embrace this innovation to not only work, but also better serve their communities.