Oracle buys Serner for $ 28.3 billion

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Oracle said on Monday it had agreed to pay $ 28.3 billion to Cerner, a major electronic health record seller. The deal is the largest acquisition ever by database company Oracle, and is a sign that some major technology companies are considering healthcare as a growth opportunity.

According to Cerner, the deal is not just a payday, it’s an opportunity to connect with a deep pocket owner at a time when the market for digital patient records is changing and technology is changing.

According to KLAS Research, which oversees the healthcare industry, Cerner ranks 2nd in the electronic health record business with 25 percent of the market by 2020. The research team reported this year that Cerner slipped slightly and Epic gained 31 percent of the market.

The digital patient registration market, like most businesses, adopts cloud-computing technology. Analysts say both Microsoft and Oracle see the huge healthcare market as a way to strengthen their position in the cloud business, with customers tapping into remote data centers and paying in terms of general usage fees.

Microsoft has the second largest cloud business after Amazon. In April, Microsoft agreed to pay $ 19.7 billion to Nuance Communications, a leader in voice recognition software used in hospitals, clinics and doctors’ offices.

Oracle has been slow in moving its database and corporate applications to the cloud, but it has improved over the past few years.

According to Cerner, the deal is headed by its new chief executive, Dr. This is a significant step forward for David Feinberg. Dr. Feinberg joined Serner from Google, where he headed its health technology division. Cerner’s relocation was announced in August, but he did not begin work until October.

In a statement, Dr Feinberg said the merger with Oracle would give Cerner “an unprecedented opportunity to accelerate our work on modernizing electronic health records, enhancing the experience of physicians and nurses, and caring for patients.”

Negotiations on the deal between Oracle and Cerner were reported last week by The Wall Street Journal.

Electronic health records are considered essential to transform medicine into the digital age – which should increase performance over the long term, control costs and provide better care.

But change for more than a decade can be difficult, costly and time consuming. Most doctors and nurses now use digital recordings, but they do an average of one to two hours of desk work every hour they see patients, according to a study by the Mayo Clinic quoted by Oracle.

Voice recognition and automated transcription have the potential to greatly reduce the time it takes to type patient information and physician notes.

Explaining the deal, Oracle executives pointed to its voice assistant technology and its cloud as assets that could help improve Cerner’s offers.

Acquisition of Cerner makes Oracle a leading technology company in healthcare. Other technology companies, including IBM and Google, have been stumbled upon in health care in recent years.

But Cerner is an established presence in clinics and hospitals. “The future of enterprise software could be with industry segments,” said Bob Parker, IDC’s analyst. “It deepens the core of the Oracle health business.”

The link also includes the ability of Cerner to combine data collected in its digital recordings with Oracle’s data analysis and artificial intelligence tools to detect patterns and make predictions about effective treatments.

In the digital patient registration business, Cerner made another appeal to Oracle. Its logs, unlike other major suppliers such as Epic, are built into the Oracle database. They operate on a specialized medical database called the cache.

“Cerner is the only logical match for Oracle,” he said. Parker said.

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