Shares of Cerner Corp. (CERN - Free Report) reached 52-week high of $55.98 following the announcement of a partnership deal with Wolters Kluwer Health, a subsidiary of Netherlands-based global information services provider Wolters Kluwer.
The partnership will develop a physician documentation solution using ProVation Clinic Note content and clinical decision support, and Cerner Millennium health information technology (HIT) solutions.
Shares closed at $55.95 at the beginning of the week. This represented a solid one-year return of 54.5% and impressive year-to-date return of 39.1%.
The clinical documentation solution will capture the necessary portions of documentation for the care being provided as physicians review results, place orders and manage the problem list within Millennium.
ProVation Clinic Note is a product of ProVation Medical, a division of Wolters Kluwer Health. It provides content specifically tailored for electronic medical record (EMR) vendors.
ProVation Clinic Note helps clinicians to create evidence-based structured physician documentation for patient encounters when embedded in an EMR system. It delivers content across multiple patient settings, such as ambulatory, inpatient and emergency.
Recently, Cerner expanded its HIT solution client base to 24 countries by offering Cerner Millennium to a privately-owned 674-bed Hospital Israelita Albert Einstein in Brazil. The HIT solution will help improve the quality of patient care and streamline operations in the hospital.
CERN started rising and has been hovering around its previous 52-week high recently following the announcement of a multiyear partnership with Utah-based non-profit health care provider Intermountain Healthcare, which has 22 hospitals, 185 clinics, a medical group comprising 1,000 physicians and a health plans division.
The partnership agreement will implement Cerner’s EMR and revenue cycle solutions across all of Intermountain's hospitals and clinics. It will also develop a new set of tools for a post-fee-for-service world in areas such as activity-based costing. It is expected to generate more than $50 million in annual revenues for CERN.
Currently, Cerner carries a Zacks Rank #3 (Hold). While there are no other medical information systems stocks that are currently worth a look, we view medical product stocks such as Bio-Rad Laboratories, Inc. (BIO - Free Report) , diaDexus Inc. and ResMed Inc. (RMD - Free Report) as worth considering. All of them carry a Zacks Rank #1 (Strong Buy).