Cerner Corporation (NASDAQ: CERN) is an international health care information technology corporation that specializes in providing complete systems for hospitals and other medical organizations to manage and integrate all electronic medical records, Computer physician order entry (CPOE) and financial information.[2]
Cerner claims to be the largest provider of electronic medical systems in the United States.[3][4] Its largest competitor, McKesson Corporation, is larger in size but McKesson has income from other non-technology medical sources.
As of Second Quarter 2009 its systems are licensed by 8,000 facilities around the world including 2,100 hospitals, 1,500 pharmacies and 3,300 physician practices representing 30,000 physicians.[5]
It has more than 8,200 employees. As of June 2006, approximately 1,900 associates in the United States and 600 associates in India were involved full-time in the software development aspect of the company. Cerner has more than 6,000 clients worldwide.
Cerner Corporation (Cerner) is a supplier of healthcare information technology (HIT) solutions, healthcare devices and related services. Cerner solutions optimize processes for healthcare organizations. These solutions are licensed by approximately 9,000 facilities globally, including more than 2,600 hospitals; 3,500 physician practices covering more than 30,000 physicians; 500 ambulatory facilities, such as laboratories, ambulatory centers, cardiac facilities, radiology clinics and surgery centers; 800 home health facilities, and 1,600 retail pharmacies. The Company operates in two segments: domestic and global. The domestic segment includes revenue contributions and expenditures associated with business activity in the United States. The global segment includes revenue contributions and expenditures linked to business activity in Aruba, Australia, Austria, Belgium, Canada, Cayman Islands, Chile, the People’s Republic of China, Egypt, England, France, Germany, India, Ireland, Malaysia, Puerto Rico, Saudi Arabia, Singapore, Spain, Sweden, Switzerland and the United Arab Emirates. On January 4, 2010, the Company completed the acquisition of IMC Health Care, Inc. (IMC), a provider of employer sponsored on-site health centers.
The Company designs and develops software solutions on the unified Cerner Millennium architecture, a person-centric computing framework, which combines clinical, financial and management information systems. This architecture allows providers to access an individual’s electronic health record (EHR) at the point of care, and it organizes and proactively delivers information to meet the specific needs of physicians, nurses, laboratory technicians, pharmacists, front- and back-office professionals and consumers. It also offers a range of services, including implementation and training, remote hosting, operational management services, revenue cycle services, support and maintenance, healthcare data analysis, clinical process optimization, transaction processing, employer health centers, employee wellness programs and third party administrator (TPA) services for employer-based health plans.
The Company offers a longitudinal, person-centric EHR, which gives clinicians electronic access to the right information at the right time and place to achieve optimal health outcomes. Medical information and care regimens accessible from home enables consumers to manage their conditions and adhere to treatment plans, creating a medium between physicians and individuals. Its Cerner ITWorks is a suite of services, which creates an alignment between Cerner and its clients. Its Cerner RevWorks includes solutions and services to help healthcare organizations improve their revenue cycle functions. It offers clinic, pharmacy and wellness services directly to employers.
The Company has created the uCern platform, a collaboration and social networking platform, which gives clients a place where they can collaborate with peers or Cerner associates about topics ranging from healthcare reform to solution enhancements to project status updates. Approximately 95% of its core Cerner Millennium clients engage on this platform. Its uDevelop solution is a collaborative ecosystem that supports audience of engineers, including both its associates and external developers, and the uCern Store, which offers clients quick access to innovations developed by Cerner, as well as outside organizations and individuals.
The Company's Healthe Intent Chart Search includes clinical meanings of words located within the electronic medical record (EMR), as well as the context in which those words occur to create algorithms that identify and rank information contextually. The Healthe Intent platform also provides the ability to apply algorithms against contextual clinical activity to recommend clinical action.
The Company competes with Allscripts Healthcare Solutions, Inc., Computer Programs and Systems, Inc., Epic Systems Corporation, GE Healthcare Technologies, iSoft Group Limited, McKesson Corporation, Medical Information Technology, Inc., Siemens Medical Solutions, Health Services Corporation, Accenture, Capgemini, Computer Sciences Corporation, Computer Task Group, Inc., Dell, Inc., Deloitte LLP, Hewlett-Packard Company, IBM Corporation, Athenahealth, Inc., eClinicalWorks LLC, e-MDs, Inc., Greenway Medical Technologies, Quality Systems, Inc., Sage Software Healthcare LLC, CapsuleTech, Inc., CareFusion Corporation, Omnicell, Inc. and Royal Philips Electronics.
Strategic alliances had formed a part of Cerner's growth since the early 1990s. By 1991, Cerner had participated in a joint venture with Sony Corporation's medical electronics division to develop the Cerner Pathology PACS Workstation, which integrated Sony's color video capabilities with Cerner information technology. A second collaboration was formed with Beckman Instruments Inc. to introduce PathTrac, which coupled parts of PathNet with Beckman's chemistry analyzer. A third alliance, with APACHE Medical Systems, Inc., gave PathNet, ProNet, and CareNet capabilities through APACHE workstations.
In 1994 Cerner extended its alliance strategy with the formation of the Cerner Alliance Program. Initial partners were SDK Health Care Information Systems of Boston, MEDIC Computer Systems of Raleigh, North Carolina, and Amisys Managed Care Information Systems of Rockville, Maryland. With these alliances, Cerner moved to add administrative and financial functions, based on HNA, that fell outside of its own development efforts. In addition to collaborating on engineering, the alliances also profited from some shared marketing activities.
By year-end 1994, more than 30 clients had contracted with Cerner for the broad implementation of the complete HNA system, including five contracts in the fourth quarter alone; another 100 clients had purchased multiple system components. The company rolled out support for the IBM RISC System/6000 processor and announced support for Microsoft's Windows interface. Revenues reached $156 million, and net earnings grew to $19.5 million, representing increases from 1990 of 217 percent and 686 percent, respectively. An important component of Cerner's success had been its aggressive R&D spending--more than $80 million in the first half of the 1990s, with plans to spend another $200 million by the year 2000.
In the mid-1990s, the trend toward consolidation and integration throughout the health care industry was evident. Increasing numbers of hospitals, clinics, physicians, and other providers were joining forces to create integrated health care organizations (IHOs). This trend would see a drop in the numbers of individual purchasers of information systems. Yet, the creation of large, regional health care systems would drive a resurgence in the need for automated information systems, with purchases of products and services expected to rise from $8.5 billion in 1995 to $13 billion by 1997. Cerner, with a mature product line centered around HNA raising $189.6 million in 1995 revenues, was positioned to continue its market leadership.
Principal Subsidiaries: Cerner Megasource, Inc.; Cerner Corporation Pty., Ltd. (Australia); Cerner Deutschland GmbH (Germany); Cerner Arabia Co. Ltd. (Saudi Arabia); Cerner Limited (U.K.).
OVERALL
Beta: 0.99
Market Cap (Mil.): $10,197.03
Shares Outstanding (Mil.): 84.11
Annual Dividend: --
Yield (%): --
FINANCIALS
CERN.O Industry Sector
P/E (TTM): 41.32 8.83 40.56
EPS (TTM): 22.12 -- --
ROI: 12.25 3.20 1.92
ROE: 13.71 4.15 2.49
Statistics:
Public Company
Incorporated: 1980
Employees: 1,300
Sales: $186.9 million (1995)
Stock Exchanges: NASDAQ
SICs: 7375 Information Retrieval Services; 7371 Computer Programming Services
Name Age Since Current Position
Patterson, Neal 61 2010 Chairman of the Board, President, Chief Executive Officer
Illig, Clifford 60 1999 Vice Chairman of the Board
Naughton, Marc 55 2010 Chief Financial Officer, Executive Vice President
Nill, Michael 46 2011 Chief Operating Officer
Townsend, Jeffrey 47 2005 Executive Vice President
Burke, Zane 37 2011 Executive Vice President
Valentine, Michael 42 2011 Executive Vice President
Wilson, Julia 48 2007 Chief People Officer, Senior Vice President
Sims, Randy 50 1997 Chief Legal Officer, Vice President, Secretary
Neaves, William 67 Lead Independent Director
Bisbee, Gerald 68 1988 Independent Director
Danforth, John 74 2005 Independent Director
Zollars, William 63 2005 Independent Director
Dillman, Linda 54 2010 Independent Director
Address:
2800 Rockcreek Parkway
Kansas City, Missouri 64117-2551
U.S.A.
Cerner claims to be the largest provider of electronic medical systems in the United States.[3][4] Its largest competitor, McKesson Corporation, is larger in size but McKesson has income from other non-technology medical sources.
As of Second Quarter 2009 its systems are licensed by 8,000 facilities around the world including 2,100 hospitals, 1,500 pharmacies and 3,300 physician practices representing 30,000 physicians.[5]
It has more than 8,200 employees. As of June 2006, approximately 1,900 associates in the United States and 600 associates in India were involved full-time in the software development aspect of the company. Cerner has more than 6,000 clients worldwide.
Cerner Corporation (Cerner) is a supplier of healthcare information technology (HIT) solutions, healthcare devices and related services. Cerner solutions optimize processes for healthcare organizations. These solutions are licensed by approximately 9,000 facilities globally, including more than 2,600 hospitals; 3,500 physician practices covering more than 30,000 physicians; 500 ambulatory facilities, such as laboratories, ambulatory centers, cardiac facilities, radiology clinics and surgery centers; 800 home health facilities, and 1,600 retail pharmacies. The Company operates in two segments: domestic and global. The domestic segment includes revenue contributions and expenditures associated with business activity in the United States. The global segment includes revenue contributions and expenditures linked to business activity in Aruba, Australia, Austria, Belgium, Canada, Cayman Islands, Chile, the People’s Republic of China, Egypt, England, France, Germany, India, Ireland, Malaysia, Puerto Rico, Saudi Arabia, Singapore, Spain, Sweden, Switzerland and the United Arab Emirates. On January 4, 2010, the Company completed the acquisition of IMC Health Care, Inc. (IMC), a provider of employer sponsored on-site health centers.
The Company designs and develops software solutions on the unified Cerner Millennium architecture, a person-centric computing framework, which combines clinical, financial and management information systems. This architecture allows providers to access an individual’s electronic health record (EHR) at the point of care, and it organizes and proactively delivers information to meet the specific needs of physicians, nurses, laboratory technicians, pharmacists, front- and back-office professionals and consumers. It also offers a range of services, including implementation and training, remote hosting, operational management services, revenue cycle services, support and maintenance, healthcare data analysis, clinical process optimization, transaction processing, employer health centers, employee wellness programs and third party administrator (TPA) services for employer-based health plans.
The Company offers a longitudinal, person-centric EHR, which gives clinicians electronic access to the right information at the right time and place to achieve optimal health outcomes. Medical information and care regimens accessible from home enables consumers to manage their conditions and adhere to treatment plans, creating a medium between physicians and individuals. Its Cerner ITWorks is a suite of services, which creates an alignment between Cerner and its clients. Its Cerner RevWorks includes solutions and services to help healthcare organizations improve their revenue cycle functions. It offers clinic, pharmacy and wellness services directly to employers.
The Company has created the uCern platform, a collaboration and social networking platform, which gives clients a place where they can collaborate with peers or Cerner associates about topics ranging from healthcare reform to solution enhancements to project status updates. Approximately 95% of its core Cerner Millennium clients engage on this platform. Its uDevelop solution is a collaborative ecosystem that supports audience of engineers, including both its associates and external developers, and the uCern Store, which offers clients quick access to innovations developed by Cerner, as well as outside organizations and individuals.
The Company's Healthe Intent Chart Search includes clinical meanings of words located within the electronic medical record (EMR), as well as the context in which those words occur to create algorithms that identify and rank information contextually. The Healthe Intent platform also provides the ability to apply algorithms against contextual clinical activity to recommend clinical action.
The Company competes with Allscripts Healthcare Solutions, Inc., Computer Programs and Systems, Inc., Epic Systems Corporation, GE Healthcare Technologies, iSoft Group Limited, McKesson Corporation, Medical Information Technology, Inc., Siemens Medical Solutions, Health Services Corporation, Accenture, Capgemini, Computer Sciences Corporation, Computer Task Group, Inc., Dell, Inc., Deloitte LLP, Hewlett-Packard Company, IBM Corporation, Athenahealth, Inc., eClinicalWorks LLC, e-MDs, Inc., Greenway Medical Technologies, Quality Systems, Inc., Sage Software Healthcare LLC, CapsuleTech, Inc., CareFusion Corporation, Omnicell, Inc. and Royal Philips Electronics.
Strategic alliances had formed a part of Cerner's growth since the early 1990s. By 1991, Cerner had participated in a joint venture with Sony Corporation's medical electronics division to develop the Cerner Pathology PACS Workstation, which integrated Sony's color video capabilities with Cerner information technology. A second collaboration was formed with Beckman Instruments Inc. to introduce PathTrac, which coupled parts of PathNet with Beckman's chemistry analyzer. A third alliance, with APACHE Medical Systems, Inc., gave PathNet, ProNet, and CareNet capabilities through APACHE workstations.
In 1994 Cerner extended its alliance strategy with the formation of the Cerner Alliance Program. Initial partners were SDK Health Care Information Systems of Boston, MEDIC Computer Systems of Raleigh, North Carolina, and Amisys Managed Care Information Systems of Rockville, Maryland. With these alliances, Cerner moved to add administrative and financial functions, based on HNA, that fell outside of its own development efforts. In addition to collaborating on engineering, the alliances also profited from some shared marketing activities.
By year-end 1994, more than 30 clients had contracted with Cerner for the broad implementation of the complete HNA system, including five contracts in the fourth quarter alone; another 100 clients had purchased multiple system components. The company rolled out support for the IBM RISC System/6000 processor and announced support for Microsoft's Windows interface. Revenues reached $156 million, and net earnings grew to $19.5 million, representing increases from 1990 of 217 percent and 686 percent, respectively. An important component of Cerner's success had been its aggressive R&D spending--more than $80 million in the first half of the 1990s, with plans to spend another $200 million by the year 2000.
In the mid-1990s, the trend toward consolidation and integration throughout the health care industry was evident. Increasing numbers of hospitals, clinics, physicians, and other providers were joining forces to create integrated health care organizations (IHOs). This trend would see a drop in the numbers of individual purchasers of information systems. Yet, the creation of large, regional health care systems would drive a resurgence in the need for automated information systems, with purchases of products and services expected to rise from $8.5 billion in 1995 to $13 billion by 1997. Cerner, with a mature product line centered around HNA raising $189.6 million in 1995 revenues, was positioned to continue its market leadership.
Principal Subsidiaries: Cerner Megasource, Inc.; Cerner Corporation Pty., Ltd. (Australia); Cerner Deutschland GmbH (Germany); Cerner Arabia Co. Ltd. (Saudi Arabia); Cerner Limited (U.K.).
OVERALL
Beta: 0.99
Market Cap (Mil.): $10,197.03
Shares Outstanding (Mil.): 84.11
Annual Dividend: --
Yield (%): --
FINANCIALS
CERN.O Industry Sector
P/E (TTM): 41.32 8.83 40.56
EPS (TTM): 22.12 -- --
ROI: 12.25 3.20 1.92
ROE: 13.71 4.15 2.49
Statistics:
Public Company
Incorporated: 1980
Employees: 1,300
Sales: $186.9 million (1995)
Stock Exchanges: NASDAQ
SICs: 7375 Information Retrieval Services; 7371 Computer Programming Services
Name Age Since Current Position
Patterson, Neal 61 2010 Chairman of the Board, President, Chief Executive Officer
Illig, Clifford 60 1999 Vice Chairman of the Board
Naughton, Marc 55 2010 Chief Financial Officer, Executive Vice President
Nill, Michael 46 2011 Chief Operating Officer
Townsend, Jeffrey 47 2005 Executive Vice President
Burke, Zane 37 2011 Executive Vice President
Valentine, Michael 42 2011 Executive Vice President
Wilson, Julia 48 2007 Chief People Officer, Senior Vice President
Sims, Randy 50 1997 Chief Legal Officer, Vice President, Secretary
Neaves, William 67 Lead Independent Director
Bisbee, Gerald 68 1988 Independent Director
Danforth, John 74 2005 Independent Director
Zollars, William 63 2005 Independent Director
Dillman, Linda 54 2010 Independent Director
Address:
2800 Rockcreek Parkway
Kansas City, Missouri 64117-2551
U.S.A.