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, President and CEO)
Products Health informatics softwares
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 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 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, computerized 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, 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 10,000 employees.[6] 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.

Contents

History [edit]

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[7] when it rolled out its first system, PathNet. It went public in 1986.[8]

In 2005 (the first year it passed $1 billion in sales),[9] it 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[10]

The world headquarters (WHQ) is across the street from North Kansas City Hospital, which was Cerner's second hospital client.[11]

In 2006 it also acquired the former Marion Laboratories complex for a South Campus in southeast Kansas City, Missouri.[12]

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.[13]
"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."[14]

Subsidiaries [edit]

Controversy [edit]

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.[15]

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.[15]

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".[16] 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.[17]

2001 Memo [edit]

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.[18]

References [edit]

  1. ^ a b c d e f "Cerner Corp, Form 10-K, Annual Report, Filing Date Feb 8, 2013". secdatabase.com. Retrieved Mar 23, 2013. 
  2. ^ "Cerner Corporation | Company profile from Hoover's". Hoovers.com. Retrieved 2010-03-16. 
  3. ^ Anderson, Charlie (2003-04-18). "Competition gives Cerner new, stern test - Kansas City Business Journal:". Bizjournals.com. Retrieved 2010-03-16. 
  4. ^ "CERN: Competitors for Cerner Corporation - Yahoo! Finance". Finance.yahoo.com. Retrieved 2010-03-16. 
  5. ^ Cerner Reports Second Quarter 2009 Results - July 29, 2009 - cerner.com
  6. ^ http://www.kansascity.com/2012/01/13/3369183/cerner-workforce-tops-10000.html
  7. ^ "Cerner Corporation: Cerner Timeline". Cerner.com. Retrieved 2010-03-16. 
  8. ^ International Directory of Company Histories, Vol. 16. St. James Press, 1997
  9. ^ by Richard McGill Murphy, FSB senior editor (2006-04-27). "FSB: 49 companies that hit $1 billion in sales last year - Apr. 27, 2006". Money.cnn.com. Retrieved 2010-03-16. 
  10. ^ 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. 
  11. ^ Roberts, Rob (2005-09-16). "RAND study helps Cerner make its case - Kansas City Business Journal:". Kansascity.bizjournals.com. Retrieved 2010-03-16. 
  12. ^ Emporis GmbH. "Cerner Corporation-South Campus, Bldg #I, Kansas City, U.S.A.". Emporis.com. Retrieved 2010-03-16. 
  13. ^ "Cerner, Form 8-K, Current Report, Filing Date Jul 13, 2010". secdatabase.com. Retrieved Mar 23, 2013. 
  14. ^ "Cerner President Trace Devanny to Step Down". Cerner.com. Retrieved 2010-07-14. 
  15. ^ a b In 2nd Look, Few Savings From Digital Health Records, By REED ABELSON and JULIE CRESWELL, New York Times, January 10, 2013
  16. ^ Phillip Longman: Code Red, Washington Monthly, July/August 2009
  17. ^ "Pediatrics - eLetters for Han et al., 116 (6) 1506-1512". Pediatrics.aappublications.org. Retrieved 2010-03-16. 
  18. ^ 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 [edit]

Business data
United States Companies of the NASDAQ-100 index
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