Cerner

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Cerner Corporation
Type Public
Traded as NASDAQ: CERN
NASDAQ-100 Component
S&P 500 Component
Industry Health Care
Founded 1979
Founder(s) Neal Patterson
Paul Gorup
Cliff Illig
Headquarters North Kansas City, Missouri, U.S.
Key people Neal Patterson
(Chairman and CEO)
Cliff Illig
(Vice Chairman)
Zane Burke
(President)
Products Health informatics software
Revenue Increase US$ 2.665 billion (2012)[1]
Operating income Increase US$ 571.6 million (2012)[1]
Net income Increase US$ 397.2 million (2012)[1]
Total assets Increase US$ 3.704 billion (2012)[1]
Total equity Increase US$ 2.883 billion (2012)[1]
Employees 11,900 (End of 2012)[1]
Website www.cerner.com
Cerner world headquarters in North Kansas City
Since 2006 Cerner has also occupied space in the former Marion Laboratories in south Kansas City
Cerner's Riverport Campus complex

Cerner Corporation is a global supplier of health care information technology (HCIT) solutions, services, devices and hardware. Cerner solutions optimize processes for health care organizations. These solutions are currently licensed by approximately 10,000 facilities around the world,[2] including more than 2,700 hospitals; 4,150 physician practices; 45,000 physicians; 550 ambulatory facilities, such as laboratories, ambulatory centers, behavioral health centers, cardiac facilities, radiology clinics and surgery centers; 800 home health facilities; 45 employer sites and 1,750 retail pharmacies.[3] As of December 2012, the company had more than 11,900 employees.[1]

Cerner is the largest publicly traded company focusing solely on health care information technology in the United States. McKesson and GE are larger in size, but both companies have income from non-technology health care sources.[4] Cerner’s main competitor is Epic Systems.

History

Cerner was founded in 1979 by Neal Patterson, Paul Gorup, and Cliff Illig, who were colleagues at Arthur Andersen. Its original name was PGI & Associates. It was renamed Cerner in 1984[5] when it rolled out its first system, PathNet. It went public in 1986.[6] Cerner's client base grew steadily in the late 1980s, reaching 70 sites in 1987, 120 sites in 1988, 170 sites in 1989, and reaching 250 sites in 1990. Installations were primarily of PathNet systems.[7]

During this time, Cerner was developing components of a Health Network Architecture, an integrated IT system designed to automate health care processes. Clients could purchase individual components or the whole system at one time. By 1994, more than 30 clients had purchased the full HNA system, while 100 clients had purchased multiple components of the system.[7]

Cerner began to expand globally in the 1990s as well, establishing presences in Australia, England, Canada, Singapore, Saudi Arabia and Germany during the decade.

In 1997, the company introduced Cerner Millennium, an upgrade to its HNA system which incorporated all of the company’s software offerings into one unified architecture. The introduction of Millennium contributed to significant growth for the company, with revenue increasing to $1.1 billion in 2005[8] from $245.1 million in 1997.[9] Ten years after its introduction, in 2007, Millennium had been successfully implemented in more than 1,200 facilities worldwide.[10]

In 2005, Cerner also acquired the Riverport Campus complex on the site of what was formerly the Sam's Town Casino above the Missouri River in North Kansas City, Missouri[11]

The world headquarters (WHQ) is across the street from North Kansas City Hospital, which was Cerner's second hospital client.[12]

In 2006 it also acquired the former Marion Laboratories complex for a South Campus in southeast Kansas City, Missouri.[13]

Its products include PowerChart and Millennium e-Booking, which is providing a code base for Choose and Book.

In July 2010, president Trace Devanny left the company.[14]
"Devanny’s responsibilities will be absorbed by the current organization. Neal Patterson will become the company’s president, in addition to his current role as Cerner’s chairman and chief executive officer."[15]

Subsidiaries

Controversy

In 2005, Cerner and other companies paid for a report by the RAND corporation which predicted great efficiencies from electronic health records, including savings of $81 billion a year or more, which RAND now says is overstated. This report helped drive growth in the electronic health record and billions of dollars in federal incentives to hospitals and doctors. Cerner's revenue has tripled from $1 billion in 2005 to a projected $3 billion in 2013. The study was criticized by the Congressional Budget Office for overstating potential savings. A 2013 reassessment of the 2005 report by the RAND corporation said that the conversion had failed to produce savings and had mixed results in efficiency and patient care.[16]

In 2010 Girard Medical Center, Crawford County, Kan., hired Cerner to install an electronic records system. But after receiving $1.3 million, Cerner employees failed to get the system running in time to qualify for federal incentive payments, and notified the hospital that it was abandoning the project, according to a lawsuit Girard filed against Cerner last year. The case is in arbitration.[16]

Phillip Longman, a senior fellow at the New America Foundation, said that the installation of a computerized health system by Cerner in the Children's Hospital of Pittsburgh of UPMC in 2002 made it harder for the doctors and nurses to do their jobs in emergency situations and resulted in a "disaster".[17] Longman goes on to say:

According to a study conducted by the hospital and published in the journal Pediatrics, mortality rates for one vulnerable patient population—those brought by emergency transport from other facilities—more than doubled, from 2.8 percent before the installation to almost 6.6 percent afterward.

Defenders of Cerner in the study charged that the Pittsburgh hospital did not adequately prepare for the transition to the CPOE system in that it had at the same time significantly changed its pharmacy process, did not provide adequate wireless bandwidth, and did not have order sets pre-programmed on day one of the implementation. They noted that other hospitals that more carefully planned the implementation did not experience the same problems.[18]

2001 Memo

According to a memo published on the Internet allegedly authored by CEO Neal Patterson in 2001, a program of strict employee control was instituted due to some behavioral patterns and evidence Patterson perceived as being indicative of underachievement by Cerner's employees at the company's Kansas City, Missouri office. Evidence used was primarily the CEO's perception of the fullness of the company parking lot at the hours of 8AM and 5PM, a metric he planned to also use to gauge the response of the employees to the program's new rules. The program itself consisted of such changes as staff reduction, a hiring freeze, closing of an "Associate Center," and the implementation of a punch-card system.[19]

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 "Cerner Corp, Form 10-K, Annual Report, Filing Date Feb 8, 2013". secdatabase.com. Retrieved Mar 23, 2013. 
  2. ↑ . Hoover's http://www.hoovers.com/company-information/cs/company-profile.Cerner_Corporation.5c861f45f5935687.html.  Missing or empty |title= (help)
  3. ↑ . Reuters http://www.reuters.com/finance/stocks/companyProfile?rpc=66&symbol=CERN.O.  Missing or empty |title= (help)
  4. ↑ . Yahoo! Finance http://finance.yahoo.com/q/co?s=CERN.  Missing or empty |title= (help)
  5. ↑ "Cerner Corporation: Cerner Timeline". Cerner.com. Retrieved 2010-03-16. 
  6. ↑ International Directory of Company Histories, Vol. 16. St. James Press, 1997
  7. ↑ 7.0 7.1 http://www.fundinguniverse.com/company-histories/cerner-corporation-history/.  Missing or empty |title= (help)
  8. ↑ http://money.cnn.com/2006/04/26/smbusiness/49cos_fsbbillion_fsb/index.htm?source=yahoo_quote.  Missing or empty |title= (help)
  9. ↑ http://www.wikinvest.com/stock/Cerner_(CERN)/Data/Revenue/1997/Q4.  Missing or empty |title= (help)
  10. ↑ http://www.answers.com/topic/cerner-corporation.  Missing or empty |title= (help)
  11. ↑ Emporis GmbH. "Riverport Campus-Cerner Corporation, Inc., - World Headquarters in North Kansas City, Mo., Kansas City, U.S.A.". Emporis.com. Retrieved 2010-03-16. 
  12. ↑ Roberts, Rob (2005-09-16). "RAND study helps Cerner make its case - Kansas City Business Journal:". Kansascity.bizjournals.com. Retrieved 2010-03-16. 
  13. ↑ Emporis GmbH. "Cerner Corporation-South Campus, Bldg #I, Kansas City, U.S.A.". Emporis.com. Retrieved 2010-03-16. 
  14. ↑ "Cerner, Form 8-K, Current Report, Filing Date Jul 13, 2010". secdatabase.com. Retrieved Mar 23, 2013. 
  15. ↑ "Cerner President Trace Devanny to Step Down". Cerner.com. Retrieved 2010-07-14. 
  16. ↑ 16.0 16.1 In 2nd Look, Few Savings From Digital Health Records, By REED ABELSON and JULIE CRESWELL, New York Times, January 10, 2013
  17. ↑ Phillip Longman: Code Red, Washington Monthly, July/August 2009
  18. ↑ "Pediatrics - eLetters for Han et al., 116 (6) 1506-1512". Pediatrics.aappublications.org. Retrieved 2010-03-16. 
  19. ↑ Wong, Edward (2001-04-05). "A Stinging Office Memo Boomerangs; Chief Executive Is Criticized After Upbraiding Workers by E-Mail". nytimes.com. Retrieved 2010-06-24. 

External links

Business data
United States Companies of the NASDAQ-100 index
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