Cerner to Take Over PureWellness - Analyst Blog
March 04 2013 - 10:00AM
Zacks
Leading healthcare information
technology (“HCIT”) solutions provider Cerner
Corporation (CERN) recently reported that it had arrived
at an agreement to take over PureWellness, a company specializing
in wellness and health.
PureWellness provides offerings
that improve lifestyle and population health. With this takeover,
Cerner will develop the ability to help entities better manage the
care of individuals in a population. By coordinating PureWellness
with its own offerings, Cerner will be well placed to support a
variety of health care entities provide improved population health
management.
PureWellness provides a tailor-made
platform used by a few thousand entities for over 4 million
persons. Its overall wellness and health offering permits better
management and administration of all wellness programs initiated by
an entity.
Cerner remains the trend setter
among pure-play, publicly traded healthcare IT (HCIT) vendors. The
company is diversified not only on a global basis but serves both
hospitals and ambulatory outfits. Its integrated solutions have
captured market share. While greenfield opportunities are
shrinking, the replacement market is growing.
We believe long-term investors may
consider Cerner, which serves a sizeable installed hospital base
that requires composite clinically-oriented applications complying
with “meaningful use” requirements, reimbursement difficulties and
complicated coding challenges. The company has long-standing,
integrated and seamless solutions for both inpatient and ambulatory
settings.
On the negative side, the federal
Stimulus program is gradually winding down. Cerner faces stiff
competition from established HCIT players, such as
Athenahealth (ATHN).
We currently have a Zacks Rank #3
(Hold) on Cerner. However, we are more positive about other stocks
such as Merge Healthcare Incorporated (MRGE) and
Becton, Dickinson and Company (BDX) both of which
carry a Zacks Rank #2 (Buy) and are expected to do well.
ATHENAHEALTH IN (ATHN): Free Stock Analysis Report
BECTON DICKINSO (BDX): Free Stock Analysis Report
CERNER CORP (CERN): Free Stock Analysis Report
MERGE HEALTHCAR (MRGE): Free Stock Analysis Report
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