Cerner Teams With WellPoint - Analyst Blog
March 05 2013 - 9:20AM
Zacks
Leading healthcare information
technology (“HCIT”) solutions provider, Cerner
Corporation (CERN) recently reported that it was chosen by
WellPoint Inc. (WLP), a large health benefits firm, to team up for
a project to check for ICD-10 commercial continuity. Cerner
will carry out complete ICD-10 and ICD-9 checks with WellPoint for
chosen clients.
Cerner believes that its role in
the project will permit it to test its composite systems before the
transition to ICD-10. The transition may severely affect the sales
of health care entities. The purpose of this project is to
establish that work flows will function across all systems.
WellPoint is a standalone licensee
of Blue Cross and Blue Shield Association. The company caters
to over 36 million individuals through its affiliated plans and
about 67 millions persons via its subsidiaries.
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, as it 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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