Oracle Health
| Company type | Subsidiary |
|---|---|
| Industry | Health information technology |
| Predecessor | Cerner Corporation |
| Founded | 1979 |
| Founder | Neal Patterson, Paul Gorup, Cliff Illig |
| Headquarters | North Kansas City, Missouri , United States |
Area served | Worldwide |
Key people | Dr. David Feinberg (CEO) |
| Products | Cerner Millennium platform (including Cerner FirstNet, SurgiNet, RadNet, PathNet, PowerChart, CareAware) |
Number of employees | 29,000 (2018) |
| Parent | Oracle Corporation |
Oracle Health, previously known as Cerner Corporation, is a multinational enterprise based in the United States specializing in health information technology (HIT) platforms and related services. By early 2018, the company supported 27,000 clients globally and employed approximately 29,000 staff members, with over 13,000 stationed at its main office in North Kansas City, Missouri.
In December 2021, Oracle Corporation revealed its intention to acquire Cerner for , a transaction that was finalized in June 2022. Following the acquisition, Cerner was incorporated into Oracle’s broader healthcare division, significantly expanding Oracle’s presence in the health informatics software and service sector.
History
Cerner was established in 1979 by Neal Patterson, Paul Gorup, and Cliff Illig, who were former associates from Arthur Andersen. The company initially operated under the name PGI & Associates before rebranding as Cerner in 1984 coinciding with the release of its inaugural system, PathNet. The name "Cerner," derived from the Latin term meaning "to discern," embodied the founders’ mission to empower healthcare organizations with decision-making capabilities through software solutions.
The firm went public in 1986 and experienced rapid growth, reaching 250 installation sites primarily utilizing PathNet systems by 1990. Cerner developed its Health Network Architecture (HNA), a comprehensive IT framework designed to automate healthcare workflows, which by 1994 had been fully implemented at over 30 client locations.
In 1997, Cerner introduced Millennium, a sophisticated unified software platform that catalyzed substantial expansion, driving revenues from $245.1 million in 1997 to $1.1 billion by 2005.
To broaden its wellness service offerings, Cerner acquired IMC Health Care in 2010. Leadership transitions followed with president Trace Devanny departing in July 2010; Neal Patterson temporarily assumed the presidency until Zane Burke took over in 2013.
A pivotal strategic acquisition occurred in August 2014 when Cerner announced it would acquire Siemens Health Services for $1.3 billion; this deal closed in February 2015 and significantly enhanced Cerner’s global reach and market position.
In July 2015, Cerner became part of the Leidos Partnership for Defense Health consortium, securing a $4.3 billion contract to oversee electronic health records for the U.S. Department of Defense.
After co-founder and CEO Neal Patterson passed away in 2017, Brent Shafer was appointed CEO at the beginning of 2018. Subsequent cost reduction initiatives led to workforce reductions in 2019 and divestitures of segments of its healthcare IT operations in Germany and Spain to CompuGroup Medical SE for €255 million during 2020.
Cerner bolstered its executive leadership team in 2020 by appointing Jerome Labat as CTO, Darrell Johnson as CMO, and William Mintz as CSO. In August 2021, Dr. David Feinberg—previously head of Google Health—was named CEO effective October.
In December 2021, Oracle Corporation announced a $28.3 billion acquisition of Cerner that concluded in June 2022, representing a transformative event for Cerner’s corporate structure and market influence.
Products
The primary offering from Oracle Cerner is the Cerner Millennium platform, an electronic health record (EHR) system. The Millennium suite includes various modular components designed to extend its functionality, such as:
- Cerner FirstNet, tailored for emergency department operations
- Cerner SurgiNet and SurgiNet Anaesthesia Application (SAA), supporting surgical and procedural workflows
- Cerner RadNet, a Radiology Information System
- Cerner PathNet, a Laboratory Information System
- Cerner PowerChart, serving as the main clinical documentation and order entry module
- Cerner CareAware, which integrates biomedical device data into Millennium
Millennium is also offered as a cloud-hosted solution under the name Millennium+. Additionally, Cerner provides the Cerner Learning Framework—a customized training program designed to facilitate EHR implementation. The company developed the Cerner Command Language (CCL), a SQL-like scripting language utilized throughout its product line to enable technical customization and functionality development.
Controversy
In 2001, a memo from CEO Patterson intended for approximately 400 managers was leaked, containing stern language demanding higher employee productivity. The memo threatened measures such as layoffs, hiring freezes, and the introduction of attendance-based monitoring systems. This communication was widely condemned for its harsh managerial tone and coincided with a 22% decline in Cerner’s stock value over a span of three days.
In 2005, Cerner co-sponsored a RAND Corporation study that forecasted annual savings exceeding $81 billion through the adoption of electronic health records (EHR). This study played a role in shaping federal incentive programs that accelerated the expansion of the EHR market, contributing to Cerner’s revenue growth from $1 billion in 2005 to an estimated $3 billion by 2013. Nonetheless, the Congressional Budget Office later criticized the report for overstating potential savings. A follow-up RAND evaluation in 2013 found that EHR implementation had not achieved anticipated cost reductions and demonstrated mixed effects on operational efficiency and patient outcomes.
Australia
Queensland Health’s Integrated Electronic Medical Record (ieMR) system relies on Cerner Millennium platforms such as FirstNet, SurgiNet/SurgiNet Anaesthesia, and RadNet. This system has been deployed incrementally across 16 regional Hospital and Health Services. The initiative has attracted criticism due to costs surpassing AUD 1.45 billion and an implementation timeline extending beyond ten years. As of 2023, installation efforts continue in facilities that remain either non-digital or partially digital.
In 2018, eHealth Queensland, the digital agency of Queensland Health, issued a restricted tender to replace the outdated iSoft Patient Administration System (PAS) with Cerner’s PAS solution. However, the project collapsed following a conflict of interest controversy involving eHealth Queensland’s CIO Richard Ashby and an employee from Cerner. Ashby resigned amid an investigation by the Queensland Crime and Corruption Commission, which ultimately found insufficient evidence to pursue prosecution.
In 2016, Nanaimo Regional General Hospital in British Columbia implemented Cerner’s system at a cost of $230 million. The deployment faced substantial criticism due to increased software errors that impaired emergency department performance. An investigation by the provincial Health Ministry identified inadequate planning, flawed execution, and organizational issues as primary causes of the failure.
United Kingdom
A 2014 coroner’s verdict attributed the death of a three-year-old cardiac patient at Bristol Royal Hospital for Children to delays caused by the hospital’s outpatient booking system. The problem originated from a failure to transfer appointments from an older system to Cerner Millennium.
United States
Cerner’s installation of a computerized health system at UPMC Children’s Hospital of Pittsburgh in 2002 reportedly diminished staff effectiveness during emergency situations. Research published in Pediatrics indicated that mortality rates for patients transported emergently more than doubled post-implementation. Supporters contended that simultaneous pharmacy system changes and insufficient preparation were responsible for these outcomes, noting that other hospitals avoided similar issues through meticulous planning.
In 2010, Girard Medical Center in Kansas engaged Cerner for an electronic records system. Despite receiving $1.3 million, Cerner did not deliver the system in time to qualify for federal incentives and abandoned the project in 2011. Both parties acknowledged Girard lacked adequate personnel to oversee the acquisition process. As of 2014, this dispute remained under arbitration.
Trinity Health in North Dakota filed a lawsuit against Cerner in 2012 over malfunctioning patient accounting software; the matter was resolved with a $106 million settlement in 2014.
A 2014 grand jury report from California revealed that Cerner was aware Ventura County’s healthcare agency was ill-prepared for a $32 million system installation. Similarly, a $31 million Cerner deployment at Athens Regional Health System in Georgia encountered difficulties leading to resignations of both CEO and CIO.
These incidents underscore challenges within Cerner’s implementation approaches and emphasize the critical need for comprehensive planning and adequate resource allocation to ensure successful deployments across its international operations.
Sweden
Due to apprehensions that the US CLOUD Act might grant American authorities access to Swedish patient information managed by Cerner, the Västra Götaland and Skåne regions opted to retain all patient records within Swedish data centers.
In 2022, the director of Västra Götaland publicly accused Cerner of violating its agreement regarding the Millennium system implementation, pointing to ongoing unresolved problems. At the same time, the Skåne region postponed its scheduled Millennium deployment.
By November 2024, Västra Götaland's healthcare facilities encountered serious transcription inaccuracies during the Millennium system rollout, which posed risks to patient safety. This led to a suspension of the project and a reversion to previous systems, causing delays in further implementation.
Locations
Cerner’s worldwide headquarters is situated at 2800 Rockcreek Parkway in North Kansas City, Missouri. The company expanded its presence in Kansas City through acquisitions made in 2005 and 2006. In 2013, Cerner revealed plans to transform 236 acres of land in southern Kansas City—previously the Bannister Mall site—into a business campus. Construction for the $4.45 billion Trails Campus began in November 2014, with an objective to create 16,000 jobs over ten years.
Cerner maintains offices across roughly 25 countries around the globe.