Cerner Corporation’s (CERN - Free Report) integrated electronic health record (EHR) and revenue cycle management solutions have been recently picked by Crisp Regional Health, Inc. Post the announcement, Cerner’s stock rallied 2.9% to $59.97.
However, Cerner currently carries a Zacks Rank #5 (Strong Sell). We believe that the latest development will provide cushion to Cerner’s shares that have lost 6.1% against the industry’s rally of 6.3% in a year's time. The collaboration is expected to provide Cerner a platform to connect the community with healthcare technology apart from expanding its foothold in the healthcare IT (HCIT) space.
Getting back to the news, Crisp Regional is a Georgia-based healthcare center that provides a comprehensive network of health and social service facilities.
Crisp Regional will adapt to Cerner Millennium, a platform designed to provide a complete, real-time view of an individual’s heath. It is supported by Cerner CommunityWorks, a cloud-based, IT platform that provides an integrated digital record of a patient’s health history. Moreover, patients and their families will be able to safely communicate with doctors, schedule appointments and access their health history.
Furthermore, Cerner’s revenue cycle solutions will allow clinicians to access a patient’s clinical and financial data.
Cerner and EHR
The field of healthcare is currently witnessing rising use of analytics. Meanwhile, Cerner has been dominating the headlines, courtesy of its efforts to digitize EHR systems.
Notably, Cerner’s HealtheIntent is a big data platform, which provides the company with significant exposure to AI (Artificial Intelligence) trends in the MedTech industry. Cerner Millennium is a Java and cloud-based automated library solution suitable for small to midsized medical practices.
In the last reported quarter, Cerner’s existing clients continued to migrate from legacy systems to Cerner Millennium. Per management, over 300 hospitals and more than 1200 ambulatory facilities have chosen Cerner’s revenue cycle solutions since 2017.
Moreover, the company foresees significant growth opportunities in the EHR market. Per management, there are more than 2000 hospitals on the EHR platform, all of which need to be updated in the near future.
Of the latest developments in the EHR platform, Cerner recently collaborated with Uniform Data System for Medical Rehabilitation (UDSMR) with a view to transmit their Inpatient Rehabilitation Facility Patient Assessment Instrument (IRF-PAI) data and Functional Independence Measure (FIM) scores directly to UDSMR to prevent manual export and import of data.
Additionally, Cerner’s EHR and revenue cycle management solutions were recently selected by the Indiana Family and Social Services Administration (FSSA) to be integrated in its six state-run psychiatric facilities.
Per a study by Markets and Markets, the healthcare IT market is expected to reach $280.25 billion by 2021 at a CAGR of 15.9%. Primary growth drivers of the market are high return on investment in HCIT solutions, government directives and the need to curtail escalating healthcare costs.
Some better-ranked stocks in the broader medical space are ABIOMED, Inc. (ABMD - Free Report) , Genomic Health, Inc. (GHDX - Free Report) and Varian Medical Systems, Inc. (VAR - Free Report) .
Abiomed has an estimated long-term growth rate of 27%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Genomic Health has an expected growth rate of 187.5%. The stock flaunts a Zacks Rank #1.
Varian Medical has a projected long-term growth rate of 8%. The stock carries a Zacks Rank #2 (Buy).
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