Cerner

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Cerner Corporation
Public
Traded as NASDAQCERN
NASDAQ-100 Component
S&P 500 Component
Industry Health Care
Founded 1979
Founder 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$ 3.402 billion (2014)[1]
Increase US$ 763 million (2014)[1]
Increase US$ 524.4 million (2014)[1]
Total assets Increase US$ 4.530 billion (2014)[1]
Total equity Increase US$ 3.565 billion (2014)[1]
Number of employees
15,800 (End of 2014)[1]
Website www.cerner.com
Since 2006 Cerner has also occupied space in the former Marion Laboratories in Kansas City
Cerner's Riverport Campus complex

Cerner Corporation is a 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 9,300 facilities around the world, including more than 2,650 hospitals, 3,750 physician practices, 40,000 physicians, 500 ambulatory facilities, 800 home health facilities, 40 employer sites, and 1,600 retail pharmacies.[2] As of December 2014, the company had more than 15,800 employees globally.[1]

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 but was renamed Cerner in 1984 when it rolled out its first system, PathNet.[3] It went public in 1986.[4] 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.[5]

During this time, Cerner was developing components of a Health Network Architecture (HNA), 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.[5]

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[6] from $245.1 million in 1997.[7] Ten years after its introduction, in 2007, Millennium had been successfully implemented in more than 1,200 facilities worldwide.[8]

Its products include PowerChart, based on the Cerner CCL programming language, and Millennium e-Booking, which is providing a code base for Choose and Book.

In July 2010, president Trace Devanny left the company.[9] "Devanny’s responsibilities will be absorbed by the current organization. Patterson will become the company’s president, in addition to his current role as Cerner’s chairman and chief executive officer."[10]

Locations[edit]

Cerner is headquartered in Kansas City, Missouri. Cerner's world headquarters (WHQ) campus is across the street from North Kansas City Hospital, Cerner's second hospital client.[11] In 2005, Cerner 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[12] In 2006 it also acquired the former Marion Laboratories complex in southeast Kansas City, Missouri, renaming the campus the Innovation Campus.[13] In 2013, the company opened the first building in a new campus development located in Kansas City, Kan. The company calls this the Continuous Campus. In early 2014, the company announced that it had begun a $4.45 billion campus construction project on the site of the former Bannister Mall in south Kansas City near the Innovation Campus.[14]

Cerner maintains a handful of additional offices in the United States, as well as offices in the UK, Australia, UAE, Saudi Arabia, Egypt, Germany, France, and several other countries.

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, Kansas, 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". Longman wrote, "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."[16]

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. They noted that other hospitals that more carefully planned the implementation did not experience the same problems.[17]

2001 memo[edit]

In 2001, a memo authored by CEO Patterson and sent to about 400 managers was leaked online. The memo, written in harsh language, was meant to motivate the managers to get more productivity out of employees and promised layoffs, a hiring freeze, closing of an "Associate Center", and the implementation of a punch-card system if Patterson did not see evidence of changes. Patterson's metric was the fullness of the company's Kansas City office lot at the hours of 8 a.m. and 5 p.m. The memo was widely seen as inflammatory and poor management, and Cerner's stock price fell 22% over three days.[18]

Subsidiaries[edit]

Awards[edit]

  • UX Award, 2013, Best Clinical Health Care Experience, Powerchart Touch[19][20]

References[edit]

  1. ^ a b c d e f g "Cerner Corp, Form 10-K, Annual Report, Filing Date Feb 11, 2015" (PDF). secdatabase.com. Retrieved Apr 1, 2015. 
  2. ^ "Cerner Corporation Company Profile". Reuters. Retrieved Feb 14, 2014. 
  3. ^ "Cerner Corporation: Cerner Timeline". Cerner.com. Retrieved 2010-03-16. 
  4. ^ "International Directory of Company Histories", Vol. 16. St. James Press, 1997
  5. ^ a b "Cerner Corporation History". 
  6. ^ http://money.cnn.com/2006/04/26/smbusiness/49cos_fsbbillion_fsb/index.htm?source=yahoo_quote.  Missing or empty |title= (help)
  7. ^ http://www.wikinvest.com/stock/Cerner_(CERN)/Data/Revenue/1997/Q4.  Missing or empty |title= (help)
  8. ^ http://www.answers.com/topic/cerner-corporation.  Missing or empty |title= (help)
  9. ^ "Cerner, Form 8-K, Current Report, Filing Date July 13, 2010" (PDF). secdatabase.com. Retrieved Mar 23, 2013. 
  10. ^ "Cerner President Trace Devanny to Step Down". Cerner.com. Retrieved 2010-07-14. 
  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. "Riverport Campus-Cerner Corporation, Inc., - World Headquarters in North Kansas City, Mo., Kansas City, U.S.A.". Emporis. 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. ^ Diane Stafford (2014-11-13). "Cerner breaks ground for its Trails Campus in south Kansas City". Kansas City Star. Retrieved 2015-03-31. 
  15. ^ a b Reed Abelson and Julie Crewswell, In 2nd Look, Few Savings From Digital Health Records", New York Times, January 11, 2013.
  16. ^ Phillip Longman, "Code Red", Washington Monthly, July/August 2009
  17. ^ "eLetters for Han et al., 116 (6) 1506-1512". Pediatrics. Retrieved 2010-03-16. 
  18. ^ Wong, Edward (5 April 2001). "A Stinging Office Memo Boomerangs; Chief Executive Is Criticized After Upbraiding Workers by E-Mail". New York Times. 
  19. ^ "Powerchart Touch Wins National Acclaim for User Experience". 
  20. ^ "Powerchart Touch, Bronze UX Award 2013". 

External links[edit]