Cerner Corporation

Topics: Health care, Revenue, Health informatics Pages: 12 (4113 words) Published: April 23, 2013
Session 2, Case Study #2
Investment Analysis: Cerner Corporation
IAKM 60401: Health Informatics Management
Ala’a Dalky
Kent State University

Cerner Corporation
The purpose of this report is to provide a brief investment analysis of the Cerner Corporation. The analysis described below based on information retrieved from available online resources (see references) and the 2011 Cerner annual report. Further, this investment was guided by the outlined points presented by the teacher. 1. Company History:

Cerner was founded in 1979 by Neal Patterson, Paul Gorup, and Cliff Illig, who were colleagues at Arthur Andersen. This company was originally named PGI & Associates. In 1984 it was renamed as Cerner, and it was at that time when it rolled out its first system, PathNet. After which, in 1986; it became public. In 1995 the company initiated Cerner Millennium architecture, revolutionary software in the healthcare industry. In2005, it was reported that the company passed $1 billion in sales. As of that, the Cerner was able to attain 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. The world headquarters (WHQ) is across the street from North Kansas City Hospital, which was Cerner's second hospital client. Later in 2006, it also acquired the former Marion Laboratories complex for a South Campus in southeast Kansas City, Missouri. The South Campus products include Power Chart and Millennium e-Booking, which is providing a code base for “Choose and Book”. In July 2010, president Trace Devanny left the company. Consequently, Devanny’s responsibilities have been absorbed by the current organization. Neal Patterson became the company’s president, in addition to his current role as Cerner’s chairman and chief executive officer. (Wikipedia, 2013). Cerner Corporation (Cerner) is a supplier of healthcare information technology (HCIT) solutions, services, devices and hardware. Cerner solutions are known to organize and facilitate processes for healthcare organizations. These solutions are licensed by approximately 9,300 facilities globally, including more than 2,650 hospitals; 3,750 physician practices 40,000 physicians; 500 ambulatory facilities, such as laboratories, ambulatory centers, cardiac facilities, radiology clinics and surgery centers; 800 home health facilities; 40 employer sites and 1,600 retail pharmacies. The Company is noted to operate in two segments: domestic and global. The domestic segment incorporates revenue contributions and expenditures associated with business activity in the United States. In contrast, the global segment compromises and organizes revenue contributions and expenditures associated with business activities in Argentina, Aruba, Australia, Austria, Canada, Cayman Islands, Chile, China (Hong Kong), Egypt, England, France, Germany, Guam, India, Ireland, Italy, Japan, Malaysia, Morocco, Puerto Rico, Qatar, Saudi Arabia, Singapore, Spain, Sweden, Switzerland and the United Arab Emirates. The Cerner Corporation has witnessed a remarkable development and widespread its corporation and investment. Indeed, on the 23rd of May 2011, the Company procured the Resource Systems, Inc; and later on the 17th of October of the same year, the Company acquired Clairvia, Inc. (Cerner Corporation, 2012). From the preceded information, it can be clearly seen that the Cerner Corporation is a strong, well-established company. This company has proven to retain high-quality privileges at both local and global domains of business. 2. Leadership Profiles.

As reported in the Cerner 2011 annual report (2012) that this company has been led by various leaders, chairmen and presidents. In the section below, a brief description of each leader will be provided. Neal Patterson is the Chairman of the Board Directors, President and the chief executive officer of the Cerner Corporation. Mr. Patterson is a co-founder of...
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