Headquartered in Kansas City, Missouri, the Cerner Corporation is a software vendor for health information technology (HIT). Since its inception in 1979, the company has built and acquired a number of products like Millenium+, its flagship cloud-based EHR today.
The EHR market is currently partially dominated by Cerner, with rivals Epic and AllScripts occupying other large swaths of the care provider market.
, Cerner, along with General Electric and other HIT vendors paid the Rand Corporation to conduct a study on the economic savings that could be generated with EHR adoption. The 2005 study claimed $81 billion
in savings annually. This study helped push the 2009 HITECH Act through Congress, which gave billions in federal stimulus to encourage adoption of EHR across the country.
Cerner revenues tripled from $1 billion to $3 billion from 2005 to 2013.
A high cost to implement, redundancy in data, and the high administrative burdens of using EHR meant that only 27% of physicians made more money after implementing EHR.
The company has also been in hot water for costly installations and defective software.
$31 million installation of Cerner in an Athens, GA health system led to medication mistakes, communication glitches, and scheduling debacles that spiraled into the CEO and CIO of Athens Regional Health System resigning.
A New York hospital settled
with Cerner for $38 million after the Cerner EHR failed to send out bills in 2017 which led to significant financial losses and forced layoffs in coming years.
, the Oracle Corporation, known as one of the largest software companies in the world, bought the Cerner Corporation for a whopping $28.3 billion deal. Among other concerns with the Oracle acquisition is that the company will be working to leverage access to patient data for building other cloud products and probably cross-selling its other extensive database products.