Epic Systems expands dominance over Oracle Health's EHR market share

In 2024, Epic Systems, the leading electronic health records (EHR) vendor in the United States, recorded significant growth in hospital market share, achieving its largest net gain on record. The company added 176 facilities along with 29,399 beds, according to a report released by Klas Research. This development stands in stark contrast to Oracle Health, which experienced a decline in its market position, losing 74 sites and 17,232 beds during the same timeframe. For the first time, Oracle chose not to disclose its list of new contracts to Klas, which prompted Klas to estimate Oracle's market share instead. The updated figures have sparked discussions within the healthcare industry regarding the reasons behind Epic's ascendancy. Epic’s reputation for strong customer partnerships has helped solidify its position as a preferred choice among large health systems while Oracle faced challenges that affected its growth. Stakeholders within healthcare organizations have pointed to Oracle’s poor partnership dynamics and unfulfilled promises as prominent concerns, reflecting the broader perception of Oracle's competitive disadvantages in the EHR market. Despite the setbacks, some optimism remains within Oracle's ranks following various technological developments, including features powered by artificial intelligence (AI) present in the new EHR announced last year. Oracle founder Larry Ellison highlighted these innovations during presentations at the company’s annual health summit, stating that the company's new EHR systems display unique capabilities such as transcription and order distribution. Nonetheless, Oracle has faced criticism, especially due to recent outages that have impacted hospitals and necessitated temporary returns to paper-based records. Overall, the sustained growth trajectory of Epic Systems over the past decade has positioned it as the sole vendor favored by major health systems when making future EHR decisions. This trend has inevitably contributed to the widening gap between Epic and Oracle in terms of market leadership. These developments underscore the increasingly competitive landscape of electronic health records in the U.S., where the ability to foster reliable client relationships and deliver innovative solutions becomes crucial for sustained success.