Cerner Corporation’s CERN Business Office Services (BOS) have been recently chosen by Northern Arizona Healthcare (NAH) health system. Cerner has been NAH’s IT vendor since 1997 and currently offers its services to two of the health system’s acute hospitals and 38 ambulatory facilities.
Under the terms of the latest deal, Cerner will provide Revenue Cycle Management (RCM) services to NAH through the BOS. Cerner BOS is designed to ease front- and back-office tasks for healthcare providers.
The new contract win will also help Cerner’s Electronic Health Record (EHR) and BOS solutions reach 200 community providers of PathfinderHealth – a regional accountable care organization managed by NAH and different local health systems.
It is to be noted that Cerner’s solutions, of late, have been picked by a number of healthcare providers. We believe the new contracts will help Cerner gain better market penetration, which in turn, is expected to drive top-line growth.
Earlier this month, Cerner’s population health management platform, HealtheIntent was selected by Broward Health. The transaction will help Broward Health’s systems come out with advanced clinical outcomes through superior analysis of patient health and access to a large data base.
This November, IASIS Healthcare selected Cerner to implement an integrated EHR and revenue cycle system across the former’s health care provider operations, which serve more than 1.1 million patients on an annual basis.
Furthermore, in October, Geisinger Health System chose Cerner's HealtheIntent population health management platform to further expand the former's data-driven population health capabilities.
We believe the clients wins will further boost bookings growth, which touched an all-time high of $1.59 billion in the third-quarter of 2015.
However, the winding down of the government EHR program is expected to create a headwind for Cerner. Moreover, intense competition in the HCIT market puts considerable pressure on the company’s pricing and margins.
Zacks Rank & Key Picks
Cerner carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the medical sector include Masimo MASI, Steris Plc STE and Abiomed ABMD. While Masimo and Steris sport a Zacks Rank #1 (Strong Buy), Abiomed has a Zacks Rank #2 (Buy).
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