Nearly everyone who has visited a healthcare professional recently can probably agree the electronic health records (EHR) system is a bit of a mess. While federal law from several years ago forced providers move to EHR, it did not formalize standards for the process, leaving much of the healthcare industry with a mishmash of competing and poorly integrated platforms. According to a recent study by the Mayo Clinic, physicians spend one to two hours on EHRs and desk work for every hour spent in face-to-face contact with patients, as well as an additional one to two hours of personal time on EHR related activities.
A new mega-merger may help mitigate some of the problems. This week, tech giant Oracle announced the purchase of Cerner (News - Alert), a provider of digital information systems used within hospitals and health systems, allowing medical professionals to deliver better healthcare to individual patients and communities. Cerner has over four decades of experience modernizing electronic health records, improving the caregiver experience, and streamlining and automating clinical and administrative workflows.
The acquisition consists of an all-cash deal at $95.00 per share, or approximately $28.3 billion in equity value. The transaction is expected to close in calendar year 2022. The transaction is subject to regulatory approvals and other closing conditions, including Cerner stockholders tendering a majority of Cerner’s outstanding shares.
“Working together, Cerner and Oracle (News - Alert) have the capacity to transform healthcare delivery by providing medical professionals with better information—enabling them to make better treatment decisions resulting in better patient outcomes,” said Larry Ellison (News - Alert), Chairman and Chief Technology Officer, Oracle. “With this acquisition, Oracle’s corporate mission expands to assume the responsibility to provide our overworked medical professionals with a new generation of easier-to-use digital tools that enable access to information via a hands-free voice interface to secure cloud applications. This new generation of medical information systems promises to lower the administrative workload burdening our medical professionals, improve patient privacy and outcomes, and lower overall healthcare costs.”
Edited by Luke Bellos