Cerner Corporation (CERN - Free Report) recently inked a deal with Finland regional leadership with an aim to deliver more coordinated and efficient access to health and social services via a government-sponsored set of standards. Notably, this collaboration will not only strengthen Cerner’s foothold in the healthcare information technology (HCIT) space but also expand its presence geographically.
It is important to note here that the project (collaboration) will be carried out in two phases. The first phase will focus on development and planning over a period of one year. As for the second phase, subject to the parties’ agreement of a shared plan, Cerner intends to contract with Aster (a co-operational organization across four of Finland’s nineteen regions) wherein the technology is delivered and implemented.
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On the back of this collaboration, around 15,000 clinicians and 10,000 social service workers will get additional support to cater to the unique needs of an evolving integrated health and social welfare system.
Notably, Finland’s government is going through a significant and brilliant transformation that can improve the way health and social care is delivered to its constituents. Cerner will lend support to this transformation by offering a coordinated and organized care team approach. This will enable care encounters to be connected throughout patients’ health and social care journey.
In August, Cerner announced its collaboration with Amazon that will enable consumers to connect vital health and well-being information with their broader health care teams much more easily. The Amazon Halo — a new service that helps customers boost health and wellness — can connect to Cerner’s technology where individuals can choose to share activity, sleep, body fat percentage and other important wellness data right from their homes.
Per a report by Allied Market Research, the global HCIT market is expected to reach $297 billion at a CAGR of 13.2% during the 2016-2022 period. Rise in demand for quality healthcare services and solutions, and patient safety and care, proactive supportive government initiatives, and increase in acceptance of mHealth and telehealth practices are the primary factors driving the market. Further, growing adoption of smartphones and patient-doctor convenience are contributing to the market’s growth.
This Zacks Rank #4 (Sell) stock have gained 4.7% in a year’s time compared with the industry’s rally of 27.7%.
Stocks to Consider
Some better-ranked stocks from the broader medical space include West Pharmaceutical Services, Inc. (WST - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and PerkinElmer, Inc. (PKI - Free Report) . While PerkinElmer sports a Zacks Rank of 1 (Strong Buy), both Thermo Fisher and West Pharmaceuticals carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PerkinElmer has a projected long-term earnings growth rate of 17.4%.
West Pharmaceutical has a projected long-term earnings growth rate of 17.4%.
Thermo Fisher has an estimated long-term earnings growth rate of 15%.
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