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Leading healthcare information technology (“HCIT”) solutions provider Cerner Corp. (CERN - Analyst Report) reported a strategic agreement with Huntington Memorial Hospital of Pasadena California under which they will build a composite set of revenue cycle and clinical solutions that will ensure complete interoperability across the system. This will be achieved by linking with the hospital’s information exchange, Huntington Health eConnect. In other words, the hospital will utilize Cerner’s offerings to further the usage of its Electronic Health Record (“EHR”).

By collaborating with Cerner, the hospital hopes to preempt undesirable incidents such as hospital-acquired infections. It will now have the necessary analytic tools to manage dangerous situations as well as improve quality of care.

Huntington Memorial Hospital plans to develop a predictive model to identify possible negative incidents prior to their occurrence. Consequently, the hospital will set up a system to identify potential sepsis indicators.   

The hospital will utilize several inpatient offerings which will allow it to safely house patient data within a solitary database. The benefits include improving diagnosis, minimizing negative outcomes and reducing average length of stay through better case management.

We believe long-term investors may consider Cerner, which serves a sizeable installed hospital base that requires composite clinically-focused applications complying with “meaningful use” requirements, reimbursement problems and complex coding challenges. The company has long-standing, integrated and seamless solutions for both inpatient and ambulatory settings.

On the negative side, the federal Stimulus program will gradually wind down. Cerner faces stiff competition from established HCIT players, such as Athenahealth (ATHN - Analyst Report), Allscripts-Misys (MDRX - Analyst Report) and Quality Systems (QSII - Analyst Report) and many others in a crowded field.

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