Cerner Inks Deal with CAMH, Canada

Leading healthcare information technology (“HCIT”) solutions provider, Cerner Corporation ( CERN - Analyst Report ) recently reported that it inked an agreement with The Centre for Addiction and Mental Health (“CAMH”) of Canada to automate clinical data processes. CAMH will utilize Cerner’s Millennium architecture, a composite computing setup in health IT services.

CAMH is a renowned research center for addiction and mental health. It is Canada’s biggest mental health and teaching hospital. CAMH is affiliated with the University of Toronto.

Cerner’s offerings will automate clinical flows at CAMH. Its solutions will provide quick access to clinical data via an electronic health record (“EHR”). In addition, Cerner’s products will provide benefits such as cutting down on potential for errors and providing an EHR for all patients.

Cerner remains the trend setter among pure-play, publicly traded healthcare IT (HCIT) vendors. We believe Cerner is one of the better-placed clinical technology vendors to benefit from high HCIT spending over the next few years. The company is diversified not only on a global basis but serves both hospitals and ambulatory outfits. Its integrated solutions have captured market share.

We believe long-term investors may consider Cerner, which serves a sizeable installed inpatient base that requires composite clinically-focused applications in compliance with “meaningful use” parameters, reimbursement challenges and complicated coding problems. 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. The company is developing multiple growth drivers which will ensure its future growth.