In a bid to enhance prescription price transparency, Cerner Corporation (CERN - Free Report) enters into collaboration with CoverMyMeds. Per the deal, Cerner will integrate patient-specific information into the electronic health record (“EHR”).
Notably, CoverMyMeds is a wholly-owned subsidiary of McKesson Corporation’s (MCK - Free Report) prescription technology solutions.
Apart from providing detailed price information to the consumers, this latest development will allow healthcare providers to review prescription pricing information at the point of care.
Prescription Price Transparency
Prescription price transparency provides a solid analysis of the prices of the prescribed drugs to both patients and healthcare providers. EHRs are the key enablers of prescription price transparency. These provide detailed information about every drug and the costs related to it at any place and anytime.
How Will Cerner Benefit From the Deal?
Cerner’s ePrescribe workflow solution will now partner with CoverMyMeds’ RxBenefit Clarity solution to deliver patient pay and benefit information at the point of prescribing. For investors’ notice, RxBenefit Clarity solution provides patient-specific benefit information to help inform providers’ clinical decisions and communicate with patients.
Currently, Cerner operates across 261 hospitals and health systems, and nearly 1,600 clinics.
EHR Gaining Popularity in Healthcare
The latest trend of EHR services in the U.S. MedTech space has been gaining prominence. In this regard, it is imperative to mention that Cerner has been dominating the headlines, courtesy of efforts to digitize EHR systems.
According to Transparency Market Research, the global EHR market is estimated to reach $38.29 billion by 2025, at a CAGR of 5.7%. Reports suggest that MedTech companies with strong exposure to big data automated EHRs will excel in terms of operations and margins.
Another key player in the space is athenahealth , whose athenaNet is also noteworthy.
In the past year, Cerner has lost 28.1% compared with the industry's 18.8% decline. The current level is also wider than the S&P 500 index's decrease of 5.4%.
Nevertheless, we believe that developments like these will provide a boost to this Zacks Rank #3 (Hold) stock in the coming days.
A better-ranked stock in the broader medical space is Veeva Systems Inc (VEEV - Free Report) . Its long-term earnings growth rate is projected at 19.5%. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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