In this episode of This Week in Health Tech, Vik and Jimmy discuss the implications of Oracle buying Cerner and what this means for the future of healthcare.
Here is what they discussed:
- “Oracle is buying Cerner, and Cerner is the #2 EHR in healthcare. Big Tech has made a move in healthcare”
- Some big news occurred recently within the healthcare space. Oracle made their biggest purchase yet and bought Cerner for $28.3 billion. This is huge news as Oracle is one of the world’s largest tech companies. With all of the products that Oracle brings, there is massive potential that Oracle can bring to healthcare. Vik spends some time talking about various products that Oracle has.
- “Anytime there is a big acquisition like this, it sends a signal that there is huge potential in the healthcare market.”
- Jimmy asks Vik why the stock price of Oracle dropped after purchasing Cerner. Stock price initially dropped because of the uncertainty of Big Tech getting involved with healthcare. Vik mentions examples such as Google and Microsoft trying their hand in healthcare and failing. The difference this time being that Oracle purchased an already well-known company in Cerner, so there might be some growing pains but over time they will figure out the best way to integrate Oracle and Cerner products.
- “I think there is a huge opportunity with analytics and making sense of all the data.”
- A huge opportunity for Oracle now that they have acquired Cerner is being able to use their analytics and AI to make sense of all the new data they will receive from Cerner. Cerner gains a big advantage over its competitors now that Oracle will be able to analyze the data. It presents the opportunity for figuring out more efficient health systems and realizing significant ROI. This can be a huge selling point for clients in choosing Cerner over its competitors.
- “Do deals like this happen quickly or is it in talks for years?”
- Jimmy brings up the point that the CEO of Cerner is relatively new, being CEO since August 2021. He asks Vik if the deal with Oracle was something that they new CEO did or if it was something that was in the talks for years. Vik speaks on why the new CEO would want to do the deal, such as Oracle already having the latest tech in place.
Listen to the full episode:
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