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Cerner's (CERN) Simplified Digital Tools to Aid Health Systems

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Cerner Corporation recently announced that it is leveraging on its deal with Xealth to provide health systems to provide new centralized digital ordering and monitoring to clients. The partnership will help health systems to select, manage and deploy digital tools and applications, while enabling clinicians to get access to remote monitoring and better engagement with patients.

Notably, Phoenix-based Banner Health — one of the largest nonprofit hospital systems in the country — has become one of the first Cerner clients to utilize the new capabilities for benefit of its clinicians and patients.

This announcement is likely to strengthen Cerner’s presence further in the healthcare information technology (HCIT) space.

More on the News

Digital health has gained significant importance during this year as a direct result of the COVID-19 pandemic. Apart from this, digital health has tremendous potential to bring about an immediate difference, primarily because it facilitates automating patient education, delivery of virtual care and lending to support to telehealth, and providing remote patient monitoring.

In fact, health systems that have a digital health program and strategy in order can respond more quickly and efficiently.



Health systems are looking for ways to organize and manage their use throughout the health system as digital tools are increasingly being integrated into care plans. Cerner expects the emergence of digital and therapeutic committees to control digital tool selection in a way similar to how pharmacy and therapeutic committees have ruled medication formularies, historically.

Market Prospects

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.

Recent Development

This month, Cerner made an investment in Elligo Health Research that will enable the former to ink a commercial agreement to extend the data and tools available at the Cerner Learning Health Network. This, in turn, will provide additional clinical trial resources to community and rural hospitals and physician practices.

Price Performance

Shares of this Zacks Rank #3 (Hold) stock have gained 2.6% in a year’s time compared with the industry’s rally of 32.4%.

Stocks to Consider

Some better-ranked stocks from the broader medical space are Merit Medical Systems, Inc. (MMSI - Free Report) , Align Technology, Inc. (ALGN - Free Report) and Thermo Fisher Scientific Inc. (TMO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Merit Medical has a projected long-term earnings growth rate of 12.6%.

Align Technology has an estimated long-term earnings growth rate of 18.3%.

Thermo Fisher has a projected long-term earnings growth rate of 18%.

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