Nelson Advisors featured in Telehealth & Telecare Aware article about OHAI - Oracle Health AI

Nelson Advisors has been featured in Telehealth & Telecare Aware article 'Breaking report: Oracle drawing up plans to lay off employees in “double digit percentages” by 1 September.

Source: https://telecareaware.com/breaking-report-oracle-drawing-up-plans-to-lay-off-employees-in-double-digit-percentages-by-1-september/

What’s the healthcare impact, other than AI?  For the business segments in the former Cerner, now is Oracle Health AI, the news has been dismal–and concerning to entities such as the Federal Government. 

The Oracle EHR, bought in the palmy days of June 2022 for $28 billion, is now down to a ‘sloppy second’ versus Epic in the acute care (20%) and the health system (27%) segments. The EHR is not prospering as an alternative, as much as many in healthcare don’t care for Epic.

There is no one reportedly lining up to buy OHAI. In June, London-based investors Nelson Advisors confirmed the rumors that the division was up for sale. The ‘usual suspects’ all have regulatory and competitive road blocks. The alternative may be private equity purchase or investment, including the Federal Government. PE is not jumping up and down to lay the money down. In other words, OHAI is a hard-to-sell asset.

Even if an OHAI sale freed up anywhere near the purchase price, an unlikely outcome, it would make only a dent in the stunning amount of debt. Whether it would improve Oracle’s low credit rating is doubtful.

There are also ongoing and new Federal commitments to meet:

There are the EHRs managed by the Veterans Health Administration EHR Modernization (EHRM) and the Military Health System (MHS), two separate but mandatorily interoperable systems. MHS is rolled out but modifications continue, while VA’s EHRM is only getting started, with extensive Federal oversight and guardrails in place. That rollout is expected to continue into 2031. These are both hot potatoes that show no signs of cooling off.

In Oracle’s traditional software business, Oracle’s latest commitment is to the Department of War (a/k/a Department of Defense). In late July DoW announced a software contract with Oracle which could be worth up to $7 billion over ten years as part of the cross-agency Enterprise Software Initiative.