Cerner Completes Acquisition of Siemens Health Services

Posted on February 2, 2015 I Written By

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As we first wrote about back in August 2014, Cerner Has Acquired Siemens and today the acquisition is complete. Here’s a quote from Neal Patterson, Cerner Chairman CEO and Co-Founder, about the acquisition:

“By combining client bases, investments in R&D and associates, we are in a great position to lead clients through one of the most dynamic eras in health care,” said Neal Patterson, Cerner chairman, CEO and co-founder. “Cerner remains focused on key development areas including population health, physician experience, open platforms, revenue cycle and mobility. We see these as critical areas of investment to ensure providers can meet growing regulatory demands and control costs, while continuing to improve quality of care.”

This note on Cerner revenue and client base was quite interesting: “Cerner expects revenue in 2015 to be approximately $4.8 billion to $5 billion, with a client base spanning more than 30 countries across more than 18,000 facilities.” For those keeping track at home, the purchase price for the acquisition was $1.3 billion plus working capital adjustments.

We wrote previously about John Glaser staying on at Cerner. Cerner has committed to supporting and advancing the Soarian platform for at least the next decade. Although, that’s not a surprise since it will probably take a decade for the Soarian licenses to come up for renewal so they can move them to the Cerner platform.

Give it 3-4 years and you’ll see why Soarian is not likely to be a long term option for organizations. It’s expensive to support 1 platform, let alone two. Cerner will be doing the minimum necessary on Soarian and integrating new revenue streams into it. Otherwise, I can’t imagine they’ll do anything great with it.

The next couple years are going to get really interesting as the two heavyweights battle it out: Cerner and Epic. Although, I thought Neal’s areas of interest for Cerner were interesting: population health, physician experience, open platforms, revenue cycle and mobility. I’d love to sit down with him and talk about what they’re really doing in these areas. Especially around open platforms.