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Top HIS Vendors By 2011 Revenue: Cerner Corp. (CERN)

Posted on April 23, 2012 I Written By

Anne Zieger is veteran healthcare branding and communications expert with more than 25 years of industry experience. and her commentaries have appeared in dozens of international business publications, including Forbes, Business Week and Information Week. She has also worked extensively healthcare and health IT organizations, including several Fortune 500 companies. She can be reached at @ziegerhealth or www.ziegerhealthcare.com.

Today it’s back to our countdown of the top five HIS vendors, with data courtesy of HealthDataManagement magazine. Today we’re focusing on Cerner, which according to the magazine’s calculations ranks second for HIS sales, edged out only by McKesson.

Cerner claims to be the top EMR vendor in the U.S., despite competitor McKesson’s much larger size, since McKesson is in so many other lines of business. As with McKesson, we’re going to share a very quick overview of Cerner’s position in the overall HIS market, which as noted previously embraces not only clinical tools like EMRs, but also HIM, revenue cycle and access tools.

Cerner holds a very tasty 18 percent of the HIS market, by HDM consultants’ calculations. More interesting, to this audience at least, is that it’s gotten there with a big helping hand from its suite of EMR products. Here’s more to chew on, below.

-Anne

Cerner Corp. (CERN)
2800 Rockcreek Parkway
North Kansas City, MO 64117
Phone: 816-221-1024

Products:  For the purposes of this discussion, let’s just be cute and say “everything HIT.”  That includes its popular Millennium suite of EMR products which are really seeing a big uptake in community hospitals, especially its remote hosted solutions.

2011 HIS Revenue: $2.2 billion

2010 Revenue: $1.85 billion

Summary:  From 2010 to 2011, Cerner’s  HIS revenue grew by 20 percent as Millenium sales yielded annual revenues of $2.2 billion.  Cerner’s overall profit margin for last year was, wait for it, just about 14 percent — and over the last 52 weeks its stock is up 34.3 percent. Yeah, yeah, I’ve been an editor for 20 years but now I know I’m in the wrong business.

Interesting facts:  Cerner has a strong international presence, from Belgium to Bangladesh, the Middle East and South America. Also, it now is offering “Community Works” to Critical Access Hospitals under 25 beds (a move your editor wouldn’t have expected given the predictably high cost of solutions from a company that size).

Top HIS Vendors By 2011 Revenue: McKesson Corp. (MCK)

Posted on April 16, 2012 I Written By

Anne Zieger is veteran healthcare branding and communications expert with more than 25 years of industry experience. and her commentaries have appeared in dozens of international business publications, including Forbes, Business Week and Information Week. She has also worked extensively healthcare and health IT organizations, including several Fortune 500 companies. She can be reached at @ziegerhealth or www.ziegerhealthcare.com.

Knowing which vendors have the highest revenue doesn’t have an immediate impact on your HIS installation, but somehow it’s fascinating anyhow.  Besides, knowing who’s solvent and what projects they’re pursuing never hurts.

So over the next few weeks, we’re going to share the names and details on the five top earners isolated by HealthData Management magazine, with some details on what they sell, how they’re doing revenue wise and whenever we can, what their market position is. Be sure to check out our full list of Top HIS Vendors.

Bear in mind that by HDM’s definition, we’re talking about vendors who cut across the whole suite of HIS services, from EMRs to revenue cycle management and departmental applications.  In most cases, the article hasn’t broken out EMR revenue from its overall revenue projections for each company.  But that being said, there’s still some really interesting data here.  All estimates are from sources indicated, as compiled by HDM.

Anne

McKesson Corp.
One Post Street
San Francisco, CA 94104
415.983.8300

McKesson is a $112 billion public company (MCK: NASDAQ) with a hand in most key healthcare sectors. There’s  medical supply and pharmacy distribution, HIT solutions which include an EMR and a clinical decision support system, pharmacy automation and medical claims management software….you get the picture. We’re talking a scary big octopus here.

While it continues to be a pharmacy giant, one has to wonder whether McKesson will shift more effort and dollars into HIT when you consider this stat: HIT generated an estimated 44 percent of  the company’s profit last year, though it accounted for less than 1 percent of its revenue. Wow.

2011 HIS Revenue: $3.2 billion

2010 HIS Revenue:  $3.12 billion

Interesting fact:  Believe it or not, MCK has been in business for 175 years; It began as a medical goods supplier in Ye Olde Days.