Oracle Health Market Share Declines After Cerner Acquisition: Klas Report

Oracle Health has lost 57 acute care customers in three years, including major health systems, according to Klas Research.

Oracle Health has seen a significant drop in its customer base and satisfaction levels since its $28 billion acquisition of electronic health record (EHR) vendor Cerner in 2022, a new report by Klas Research shows.

The company has lost 57 unique acute care customers in the past three years, including 12 large health systems with over 1,000 beds. Health systems such as Intermountain Health, UPMC, Henry Ford Health, Adventist Health, and ChristianaCare have exited Oracle’s platform between 2022 and 2024.

Customer Dissatisfaction and Market Pressure

According to Klas, Oracle inherited an already strained client base when it purchased Cerner, and satisfaction has not improved. Clients cited a decline in their relationship with the EHR vendor, pointing to “lack of clear communication, insufficient industry knowledge due to layoffs, increased focus on collections, and unmet promises.”

Half of the interviewed customers said they would not repurchase Oracle’s EHR in 2024. Customer perception of Oracle as a long-term partner also declined, from 67% in Q2 2022 to 47% in Q1 2025.

Meanwhile, competitor Epic continues to expand, controlling more than 42% of the acute care hospital market in 2024, while Oracle’s share stood at 23%.

Oracle has also struggled with the Department of Veterans Affairs’ costly and troubled EHR rollout, which has faced errors and technical challenges.

Signs of Progress With New Technologies

Despite the setbacks, some clients expressed optimism about Oracle’s future roadmap. According to the report, customers noted improvements in code quality in new releases and highlighted satisfaction with Oracle’s Clinical AI Agent, which drafts patient documentation and suggests clinical steps.

Oracle also launched a new EHR system for ambulatory providers earlier this month. While a few survey participants showed enthusiasm, more than 70% said they lacked visibility into the new record, and only 24% expected adoption within two to three years.

Oracle did not respond to requests for comment on the findings.

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