Cerner Corporation ( CERN Quick Quote CERN - Free Report) recently announced its intent to align its research and development resources with solutions that are most needed by caregivers around the world — via its latest offering — Cerner RevElate. The company’s go-forward patient-accounting product, Cerner RevElate, is a testament to its investment in facilitating patient-accounting capabilities and enterprise-wide technology optimization.
For investors’ note, Cerner is planning to uplift its current patient-accounting client base to Cerner RevElate in phases. Further, the company will work toward preparing clients while creating a customized resource and implementation timeline to aid in easing the transition.
With the latest offering, Cerner is expected to solidify its position in the global revenue cycle management (“RCM”) space.
Significance of the Announcement
Currently, the healthcare industry is undergoing consolidation rapidly. The Cerner RevElate is expected to provide the flexibility to combine data from numerous venues of care, including newly acquired and integrated facilities that may be on different health IT systems.
Cerner RevElate is also likely to minimize complexity by managing data and workflows that scale for large health systems and influence clinical, billing and payer workflows. It is also anticipated to preserve and advance the clinically driven capabilities of Cerner Millennium and add scalable enterprise capabilities of the Soarian Patient Accounting software.
Management believes that in the era of digital and data transformation, Cerner’s latest offering is likely to deliver an outcome of a very comprehensive and deliberate review of its technology architecture and product portfolio, which is envisioned to provide maximum value to health systems.
Industry Prospects Per a report by MarketsandMarkets, the global RCM market is anticipated to reach $90.43 billion in 2022 from $45.59 billion in 2016 at a CAGR of 12.1%. Factors like decreasing reimbursements in the healthcare industry, regulatory mandates for the adoption of EHR (electronic health records)/EMR (Electronic Medical Record) and loss of revenues due to billing errors are expected to drive the market.
Given the market potential, the new offering is likely to provide a significant boost to Cerner’s business globally.
Of late, Cerner has witnessed a few notable developments across its business.
In July, the company reported robust second-quarter 2021 results where it registered strong upticks in both revenues and adjusted earnings per share.
The same month, Cerner announced the expansion of its two-decade relationship with Baystate Health by introducing a digital health platform to integrate care delivery and financing systems for a more consumer-focused approach to patient care.
In April, the company announced the acquisition of Kantar Health, a division of Kantar Group. Following the completion of the buyout, Kantar Health’s life sciences expertise would be combined with Cerner’s collection of real-world data and technology. This is expected to accelerate innovation in life sciences research and improve patient outcomes worldwide.
Comparison With Peers
In October, Cerner’s peer
Allscripts Healthcare Solutions’ ( MDRX Quick Quote MDRX - Free Report) business unit, Veradigm, entered into a collaboration with CareMetx. Per the terms of the new agreement, CareMetx is expected to combine its solutions and services directly into the Veradigm AccelRx specialty medication platform.
Another renowned name in RCM services,
NextGen Healthcare, Inc. ( NXGN Quick Quote NXGN - Free Report) , announced that its RCM Services has been successfully optimized by Coastal Orthopedics (Coastal) for its billing and reporting purposes, in September.
Another renowned peer of Cerner,
Health Catalyst, Inc. ( HCAT Quick Quote HCAT - Free Report) launched the Health Catalyst Research Offering for healthcare providers, biopharmaceutical companies and clinical research organizations, in September. The new offering will aid health systems to safely convert and maximize their existing clinical databases, thereby unlocking access to mutually beneficial industry and research partnerships.