(Bloomberg) -- Oracle Corp.’s digital health records business continued to lose market share in the US in 2023, underscoring the software giant’s difficulties since acquiring Cerner Inc. about two years ago.

Oracle Health, the rebranded name for Cerner, lost hospitals and other acute-care facilities with a combined patient capacity of 15,392 beds in 2023, according to a new report from KLAS Research, an industry research firm. This is a steeper rate of departure than in 2022, when Oracle lost facilities with a combined patient capacity of 4,658 beds.

“In 2023, Oracle Health saw their largest net hospital loss on record, the result of multiple large multispecialty organizations choosing to leave,” KLAS wrote in the report. This was fueled by a decline in product performance and “persistent” challenges with its tool for tracking revenue, the analyst wrote.

The vast majority of those lost customers switched to Epic Systems, the Wisconsin-based company that has long been Cerner’s chief rival. Oracle didn’t respond to a request for comment.

Known for its database and cloud software, Oracle bet on the health care industry with its 2022 acquisition of Cerner for $28 billion. Chairman Larry Ellison declared the deal would help fix many of the industry’s ills by modernizing notoriously dated systems, and would create a major growth engine for his company’s earnings as well. 

Since then, Cerner’s revenue has declined with customer departures as the company focused on the unglamorous work of upgrading older computer systems. Bloomberg previously reported that Oracle had lost at least a dozen major customers in 2023 to Epic.

For More: Oracle’s $28 Billion Cerner Health Tech Bet Sputters With Lost Customers and Slipping Sales

Oracle continued to lead in new deals for small standalone hospitals, KLAS data shows. It also scored a contract with a large health system during in 2023 for nearly 50 facilities.

This report doesn’t include data on market share outside the US, where Oracle has found some success. The company has announced agreements to run health systems software for public entities in Sweden, the UK and Saudi Arabia. Most current growth opportunities the company sees are outside the US, Bloomberg has reported.

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